Bitcoin price watchers are concerned about the current trend. With this extended bearish pressure, day trading has become rather risky. The same applies to long-term trading, as Fundstrat’s Rob Sluymer warn users to implement proper stop-loss orders.
The Bitcoin Price Decline Continues
Looking at this year’s Bitcoin price charts is is enough to depress even the most ardent of HODLers. There has been an ongoing bearish trend for over seven months now with very little relief. Every single attempt at an uptrend has been negated fairly quickly. This latest drop occurred through one massive sell candle across exchanges. That candle successfully wipes out several days of upward Bitcoin price momentum.
Developments like these have begun to worry traders around the world. Critical support levels appear to have been broken, which can have cataclysmic consequences for traders and speculators. In fact, some experts – like Fundstrat’s Rob Sluymer – advise traders to implement strong stop-loss orders. This applies to both short-term and long-term trades. It is unclear what the market will do exactly, although a further drop seems possible.
For Bitcoin price watchers, taking precautions is of utmost importance. Preventing further financial loss is the advisable course of action. Most exchanges facilitate such features through stop-loss orders. It ensures one’s open sell order is filled automatically if the price hits that level to avoid further damage. Bitcoin has shown a tendency this year to drop anywhere from 0.5% to 15% in a matter of 72 hours, causing quite a few headaches for ill-prepared traders.
Sentiment Becomes Even More Bearish
Based on the current market conditions, the stop-loss order advice is more than just a good idea – it is day trading gospel. Many new people entered the cryptocurrency space over the past twelve months and a lot of them are suffering from this ongoing value decline as they bought in near the top. As such, cutting one’s losses is sometimes the only viable option.
The bigger question is what the Bitcoin price will do next. A rebound seems in order, but may not necessarily materialize. Bitcoin has fallen below key technical levels in numerous ways. As such, it is impossible to accurately predict the future. Ensuring a stop-loss is in place may be more warranted than ever before.
At the same time, technical analysis only tells part of the story. It is equally possible this is the dip for a very long time to come. The coming weeks will offer a lot more clarity in this regard. Other currencies are also suffering from this ongoing negative market trend. Ethereum, for example, is recording even bigger losses at this stage.
Do you employ stop-loss orders in your trades? What other steps do you take to minimize any losses? Let us know in the comments below.
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