What are the Bitcoin position management techniques? Bitcoin positioning method revealed

In recent times, even if global stock markets are rising strongly, the crypto market has not recovered. After all, the collapse of Terra still has a great impact on the sentiment of investors in the crypto market. Bitcoin has now fallen below $28,000. Bitcoin fell to its lowest level since December 2020 on Monday as the cryptocurrency market began to plunge this week. The latest decline came as BTC broke through long-term support at $25,200, with some expecting the price to drop to $19,000.

What are the Bitcoin position management techniques?

The following are the Bitcoin position management skills brought to you by the editor:

1. Trading with the trend

In the currency circle trading, you can keep the mid-term position and use other positions as liquidity positions. Specific settings can be adjusted according to the individual needs of investors. If investors pay attention to short-term operations, they can increase their liquidity positions; if they pay attention to mid-line operations, they can reduce their liquidity positions.

2. Making orders against the trend

In currency trading and placing orders against the trend, before the consolidation area breaks through, investors need to take light positions, try not to carry out heavy positions, and wait for the breakthrough before appropriately increasing the position ( You can add a position to the middle position). In counter-trend trading, unless there is a significant change in the direction of the market, there will be no opportunity for heavy position operations.

3. Sideways trading

Consolidated position control in currency circle trading is relatively strict. Before the consolidation area is broken through, no heavy position operations are allowed. After the breakthrough, the position can be gradually increased.

In addition, you need to establish a position before opening a position in currency trading, and the control of the position also starts from the position. Under normal circumstances, it is best for investors to control the size of their positions within 20% of their total funds to avoid liquidation. After establishing a position, investors need to increase or decrease their position appropriately based on their actual situation and market fluctuations.

How to cover Bitcoin position?

First, if the market is unstable, do not cover your position.

When the trading market is in a downward or rebounding trend, you cannot choose to cover your position. Because if the downward trend continues, choosing to cover your position will cause more losses.

Second, if the decline is large, you can choose to cover your position.

When the trading market is declining significantly and a large loss occurs, you can choose to cover your position. Because covering positions when the decline is not obvious, the subsequent decline space will be more difficult to predict, and a large decline also means that the downside space is already relatively limited.

Third, don’t cover your position in the early stage of a bear market

When the currency price does not fall very seriously, you must resolutely choose not to cover your position. When the current price of the currency circle is 5% lower than the purchase price, if you choose to cover your position, it is easy to be unwound during any intraday shock. In the early stages of a bear market, the market is prone to sudden changes, so you should patiently observe before making a decision.

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