Crypto Wrap Up and Tip of the Week 2022-06-13
Bitcoin has been trading relatively sideways over the past week, with two exceptions during this week, as Asia stirred up the market volatility significantly during its opening hours, resulting in a sharp move up, only to result in an opposite movement precisely 24 hours later.
Since then BTC has been trading quietly within a tight trading range, as traders await a decisive breakout or breakdown in prices. According to the Bitcoin Fear Greed index, traders sentiment remains bearish.
While Bitcoin trades quietly and choppy around the $30.000 dollar mark, the altcoin market has seen a green week, as typically under these conditions short term risk appetite grows for altcoins.
A standout was LINK token, which rallied 10% in a 24 hour timespan, alongside ADA that rose by 9% compared with BTC`s flat performance over the same period.
Tip of the week: Check your emotions!
When markets remain range bound after a large move, the market enters a stage where a lot of slip ups can happen. Traders might be frustrated because they missed out on its prior move, or euphoric enough to expect another move like that shortly. While one trader tries to make more money, and the other tries to make a loss or “missed opportunity” back, they will likely fall into the same pattern, which is overtrading.
Overtrading is the act of jumping in and out of positions in quick succession without having a real plan or idea. The result is a slow but deep portfolio bleed as the trader pays high fees and makes consecutive losses. This way of trading is a portfolio killer.
Whenever you find yourself in such a situation, take responsibility for your own actions, and step away from the charts so that when you come back. Promise yourself to not look at dollar amounts, but rather at percentages. Come back after your break so you can take a fresh look at it, and you will find that you are able to make clear decisions again!
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The information provided above is not financial advice but for educational and entertainment purposes. Please do your own due diligence or consult a financial advisor before investing in any digital assets.
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