Now that we are living in a winter that never seems to end, it’s a good time to think about what’s good about having a crypto winter. Let’s start by defining crypto winter “season in which there is a succession of declining highs and declining lows on high time scales”. Based on that definition, we are in a winter in the cryptocurrency world. A winter that at some point will have (or has had) its peak.
Why such winter is a good thing? First of all, it is natural. It is the consequence of the rises, there were people who bought and who are now selling. And buyers want to see lower prices. And so on, until buyers start buying more and more expensive. Some sellers are forced to sell or have capitulated. Here is the first advantage: buy from forced sellers. If possible, you should average purchases because liquidations move the price a lot and are very unpredictable.
We are seeing layoffs in companies and hiring in others. Moving to where you are treated better is a good idea. Preparing for better jobs is an advantage of this bear market.
Miners have started to get out of the market and there will come a time when it will be interesting to get back in. Because the competition will be less, there will be more ease and profitability. Hence we should keep an eye on the Hash Ribbon, when it gives a buy signal or reaches lows.
The indicator has a very good history and usually not much time passes between the selling signal and the buying signal.
And finally, the trend change. It is smart to buy dips when the trend changes. Catching falling knives is a good idea if you have the capital and the will to withstand further declines. But what does the theory tell us? That buying DCA is done on pullbacks after bullish impulses. The reverse is the case with selling.
You should turn those moving averages into supports. At the moment, they are clearly resistances and mark only selling opportunities.