Happy Monday!
Today I wanted to share a sure-fire way to continue raking profits during bear market cycles. Like it or not, most crypto assets are correlated to a high degree, which makes portfolio hedging within the market pretty difficult without gambling on altcoins. However you should consider BNB as an alternative when your larger investments aren't performing well.
If you are interested in calculating the correlations between trading pairs offered on Binance to see what I am talking about, check out my recent post:
Now let me talk about the BNB/BTC interaction before I throw up my graphic. BNB price movements can adequately be described by Binance trade volume because of the transaction discount offered by the largest exchange in the world. People buy into BNB before making large buys to cut down their fees, and people also buy in before making large sells, although BNB's reaction to selloffs usually trumps the influx.
What is impossible to ignore is the BNB reaction to price floors in high volume markets such as BTC. BNB and BTC, like the graphs of many coins, rise and fall together with price floors as an exception. When BTC settles at a floor for long enough, be it because trust for the coin is low or high, statistically significant portions of cash flow into BNB. Not only is there heavy profits to be made at these floors, but this cash is reflected in the BNB market as comparatively higher lows when the entire crypto market is low. This is why I hold BNB as my nest egg, but that is besides the fact. Check it out:
This is a picture of the bear cycle from the last BTC high of 10k. You can see BNB and BTC top out together, then begin to fall with BNB peaking around 14. BNB falls to a monthly low until the first buy trigger: BTC seems to have hit a price floor. With the supposed price floor in 8k range, this would have confirmed an ancient rising support and massive crypto potential. BNB surges 30% in only a few minutes. BNB corrects following a continued BTC selloff and then repeats at the next alleged floor. BTC is way down at this point, but BNB is reaching ATH. This repeats again. With a clean entry and exit of the BNB market you could have doubled your portfolio while BTC hurtled towards 6k. That spare change would be nice to have right now, with almost every crypto asset on clearance.
Check out my post history for clear, unedited, and accurate market predictions. My TradingView is @rolflocher, I'd love to hear your reactions and thoughts below. If you'd like me to check out your profile or recent post, feel free to comment as well. Cheers.