Beyond the Dip: Crypto Analyst’s Strategies on Bitcoin and Altcoins – Ethereum (ETH), Solana (SOL), and AXS in Focus
Crypto analyst Daan Crypto Trades lately shared his perspectives on the current state of the market. With a focus on Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Axie Infinity (AXS), Daan provided an in-depth analysis of the potential risks and opportunities for traders and investors.
Daan noted that most altcoins have experienced a 20-50% decline from their 2024 highs. However, he emphasized that such retracements are not uncommon, even during bullish cycles. “During the 2021 bull run, we also saw several 40%+ retracements during massive high timeframe rallies like SOL and AXS did, for example,” he stated.
Moreover, Daan underscored the importance of Bitcoin’s performance, asserting that whether altcoins bottom out soon will be “entirely dependent on BTC (and ETH to a lower degree).” Consequently, he believes that the lower prices go, the better the risk/reward ratio for long positions becomes.
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Prudent Risk Management and Long-Term Outlook
While acknowledging the potential for further downside, Daan stressed the importance of prudent risk management. “Your goal should not be to nail the exact bottom but be sufficiently exposed to whatever token you are bullish on when the market does turn back around,” he advised. “And of course, don’t blow up your account in the meantime.”
Significantly, Daan highlighted that Bitcoin has only experienced a ~20% correction since the launch of ETFs, which he considers a “healthy amount.” However, he cautioned that larger corrections have occurred in previous bull cycles, potentially dragging altcoins lower.
Despite the current volatility, Daan remains focused on his long-term holdings. “I am holding the bags I want to hold in my long-term spot portfolio, so no changes there,” he stated. “Will take small bits out of that when things get really frothy again like last month.”
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Show more +A Balanced Approach and Market Opportunities
Consequently, Daan plans to scale into swing long positions with a “relatively wide invalidation.” Additionally, he emphasized the importance of risk management, stating, “Obviously, risk will be managed, as should always be the case. Can’t stress that enough.”
Daan Crypto Trades’ analysis underscores the nature of the crypto market. While acknowledging the potential risks, he remains optimistic about the opportunities for those who can navigate the volatility with a prudent and balanced approach. “Will see what the market gives us!” he declared, reflecting the shiting crypto market.
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