As markets digest the news of exchanges being targeted by the SEC, the recent price movement in the cryptocurrency market has led to a retreat in many alt coin prices. This article will explore why these pullbacks present an opportune time to prioritize focusing on the markets.

First and foremost, it's crucial to remember that the objective in trading is always to buy low and sell high. Therefore, when prices drop, it should immediately catch your attention and serve as a trigger to monitor the markets closely. Take this as a signal to start identifying signs of accumulation within the market and to assess the strength of players within their respective industries.

For example lets look at the following two charts and tell me which is showing more strength?

Or

To me its pretty obvious that LTC is showing much more strength as the overall alt coin market is pulling back. Showing that sellers are not as in control of this asset compared to something like Theta.

When engaging in trading, it's essential to have a well-defined strategy or set of strategy’s . Any sound "trading strategy" should of course incorporate an exit or failure point. (NOTE: It's important to differentiate this approach from a buy-and-hold strategy, which operates differently.) When stocks or cryptocurrencies prices are depressed after a run, such as reaching local or all-time lows, these levels can provide clear markers for identifying exit points. Setting our stop loss at these points becomes relatively straightforward. This means identification can be much easier! For instance, if a coin is at an all-time low and begins to decline even further do you want to ride with it down even lower? or get out sit on the sideline an reassess it at a later time. The following example shows how this might look

As Algo pulled back to its December low there was a potential decision to make. Would the price respect that level and reverse to stage higher or break lower. An entry could have been made at this level with a stop loss tight just below. This would enter you in the trade if it bounced, but kick you out if it failed (with potentially little loss). As can be seen in this example you would have been kicked out of this trade and spared from riding it lower and lower, as sellers clearly control this market at the moment. It also sets a level on the back end as a break out above this level again could potentially be another good entry point.

Cryptos pulling to these levels show us who, at the moment, has the strength. This is also the times you want to be watching for the next cycle run to begin! Being at these defined levels also provide potential low risk entries as we have a measurable back stop to play against.

By recognizing the potential advantages of pullbacks and employing effective trading strategies, investors can navigate the market with a more informed and risk-optimized approach. These are the times in crypto I love for buying opportunities!

Till next time my friends, Later
-Dest

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