Within last weeks' news rich environment, from a possible short squeeze in Silver to the Fed meeting, Bitcoin (BTC-USD) and the Grayscale Bitcoin Trust (GBTC) experienced much volatility. Thankfully, we were able to extract substantial profits. Let us share one of our core principle tools that allowed us to do so. Our Quad Exit Strategy. This useful tool is not just helpful in volatile sideways ranges like we experienced so far in 2021 but will come in handy especially when the trend reestablished itself soon again. Bitcoin profits through Quad exit strategy.
We use quad exits to honor the principle of "choices." Our approach is an "all in" system with a high expectancy of immediate profits based on the action-reaction principle. We are contrarians and are fading moves. As such, we exit half of the position shortly after entry for small gains to mitigate risk. Then we take another 25% off the position on our first target and another 25% on our 2nd final target.
Here are the significant advantages of the Quad Exit Strategy: It is typically getting more and more stressful for the mind through increased fear that gained profits might disappear. The quad exit supplements by making you emotionally an instant winner on your first exit.
BTC-USDT, Daily Chart, Risk taken out before the breakout:
BTC-USDT, daily chart as of February 1st, 2021
The principle is that the more extended a move, the more extensive the possible snap back to the mean. Fear of missing out on profits tends for amateur traders to either make a tight stop, which takes them out or worse, they use a stop somewhat in the middle, taking quite big profits away and still getting stopped out. Principle-based though is to have either an extensive stop or take a profit target. However, both are very hard to do due to our human psychology. With the Quad Exit Strategy, you erase these hardships. You exit with half to mitigate risk and create a psychological balance following the instinct to cash in. Now you have two segments of each 25% of the total position size still left to be very flexible in maneuvering.
The daily chart above shows the various points of interest within a trade sequence.
BTC-USDT, Weekly Chart, Volume analysis supportive of runner success:
BTC-USDT, weekly chart as of February 1st, 2021
In our personal experience, after the second exit with yet another profit booked, one is very much at ease to let the runner (= the last 25% of the position size) do what it needs to do: RUN!
With price sitting right on a high volume analysis support node as seen on the weekly chart above, its survival has a good chance. Even if the trend continuation should fail it will get stopped out at break even entry levels and we still took profits on 75% of our original position size.
BTC-USDT, Weekly Chart, Bitcoin profits through Quad exit strategy:
BTC-USDT, weekly chart as of February 1st, 2021
The large time frame chart shows supportive of the trend. With a healthy Fibonacci retracement of .618%, the odds for trend continuation are in favor.
Of course, no one knows when a trend is over, but you don't have to worry using the Quad Exit Strategy.
Bitcoin profits through Quad Exit Strategy:
Typically, one is glued to the screen when prices go into one's favor with a biased emotional emphasis on up and downticks. With the Quad Exit Strategy however, you have an emotionally balanced mindset since 75% of the positions are successfully cashed in already. Now you can apply reliable technical analysis for the runner part. That means evaluating how much risk you are willing to take for this position part versus how likely the projections are for it to go further. You can do this unbiased and with a fresh mind. It also allows for wide and accurate stop placement and makes you see the market for what it truly is.
Florian Grummes is an independent financial analyst, advisor, consultant, trader & investor as well as an international speaker with more than 25 years of experience in financial markets. Via Midas Touch Consulting he is publishing weekly gold, silver, bitcoin & cryptocurrency analysis for his numerous international readers. Florian is well known for combining technical, fundamental and sentiment analysis into one often accurate conclusion about the markets. www.midastouch-consulting.com
Analyst’s Disclosure: I am/we are long BTC-USD. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
FAQs
UK fintech firm Finder carried out a study based on expert price predictions of 40 crypto industry specialists on how Bitcoin is expected to perform through to 2030. Bitcoin, it found, is likely to hit an average peak price of $87,875 in 2024, with some experts predicting it will climb as high as $200,000.
When should I sell my crypto coins? ›
Conversely, the best time of day to sell cryptocurrency may be in the evening or at night, when the prices tend to drop or stabilize. Another factor to consider is the day of the week.
What is the profit taking strategy in crypto? ›
This strategy, known as partial profit-taking, allows you to capture gains at various price points as the asset's value rises. For instance, if you've purchased a cryptocurrency, you could set take-profit orders at 50%, 75%, and 100% above your purchase price.
Is Bitcoin on the rise? ›
Over the weekend, BTC continued its climb. Now bitcoin has not only regained all the ground it lost since the onset of crypto winter in May 2022, but it has also set multiple new all-time highs for the first time since November 2021. In addition, Ethereum (ETH) has been gaining too.
Will crypto bounce back in 2024? ›
Our most recent Bitcoin price forecast indicates that its value will increase by 11.76% and reach $75,438 by April 08, 2024.
Which crypto will boom in 2024? ›
Top 10 Cryptos in 2024
| Coin | Market Capitalization | Current Price |
|---|
| Dogecoin (DOGE) | $25.6 Billion | $0.1783 |
| Tron (TRX) | $10.4 Billion | $0.1192 |
| Polkadot (DOT) | $12 Billion | $8.43 |
| Cosmos (ATOM) | $4.2 Billion | $10.95 |
6 more rows5 days ago
The decision to cash out crypto or Bitcoin depends on your financial goals and market conditions. You may want to lock in gains, cut or harvest losses for taxes, or simply use your digital assets in the real world. It's crucial to consider tax implications and market timing.
How high will bitcoin go in 2024? ›
Coming off an impressive 2023, when it rose by more than 150%, Bitcoin (CRYPTO: BTC) is shaping up to have an even better 2024.
What is the best time of day to invest in crypto? ›
Prices are lower when the market is less busy. Although you can trade cryptocurrencies at any time of day, the market is more active during typical work hours and less active early in the morning, at night, and on the weekends. Generally, cryptocurrency prices start low on Monday and rise throughout the week.
What is the most profitable crypto trading strategy? ›
One popular strategy is called scalping, which involves making multiple small trades throughout the day to take advantage of short-term price movements. Another strategy is trend following, where you aim to identify and ride the longer-term trends in the cryptocurrency market.
Ethereum has been one of the most popular altcoins for a long time, and its market capitalization is now worth several billion dollars. Despite its established status, Ethereum's prospects for an upside remain significant, potentially making it one of the most profitable cryptocurrencies to buy.
How do you make daily profit with crypto? ›
Engage in day trading, explore staking and yield farming opportunities, complete microtasks or freelancing gigs, leverage affiliate marketing, consider crypto mining, explore crypto lending platforms, and create and sell digital products.
How much will $1 bitcoin be worth in 2025? ›
Some analysts, riding the wave of optimism, predict a meteoric rise to $141,000, fueled by factors like a potential Bitcoin ETF approval. Others, cautious veterans of the crypto roller coaster, see a more moderate $50,000 range.
How low will bitcoin go in 2024? ›
Bitcoin Price Prediction
| Bitcoin Price Prediction | Potential Low | Potential Average |
|---|
| Bitcoin Price Prediction 2024 | $35,000 | $77,500 |
4 days ago
Bitcoin (BTC) Price Prediction 2030
| Year | Price |
|---|
| 2024 | $ 71,792.53 |
| 2025 | $ 75,382.15 |
| 2026 | $ 79,151.26 |
| 2027 | $ 83,108.83 |
1 more rowBased on our analysis, Bitcoin's price could fall to a low of $38,000 or reach a high of $85,000 by the end of 2024. By the end of 2025, we expect BTC to have hit a new all-time high (ATH) around $102,000, then drop close to $65,000 by the end of the year—which will become positive support for the crypto's price.
Will crypto market ever go up? ›
Analysts believe the prices of bitcoin will continue to rise in 2024. Regulatory uncertainties in over 190 countries, exemplified by Nigeria's recent crackdown on cryptocurrency transactions, pose significant challenges for investors, said an expert. Bitcoin is now more valuable than ever.
When crypto market will go up 2024? ›
To further reinforce this optimistic outlook, Bitcoin's market capitalization reached a record-breaking $1.3 trillion on March 4, 2024. With much buzz around the Bitcoin halving event, investors must conduct thorough research and analysis and regularly stay updated with crypto news.
What is the crypto market prediction for 2025? ›
Looking ahead to the 2024-2025 bull run, we can expect significant growth in the crypto market cap, potentially reaching $9T. Bitcoin is expected to lead the charge, with the halving triggering a new bull run and a spot ETF approval likely before the event.
