Prepare For The Bitcoin Bull Market Top With PrimeXBT

Bitcoin price is back at above $60,000 and near record-setting prices making it clear that the bull market is still on, and that targets closer to $100,000 are only days away. But this also means that the end is certainly near – probably a lot closer than anyone is ready to believe. And when the conclusion happens, it happens in a flash.

Being ready for the eventual reversal and preparing ahead of time is the only way to survive and be sure to stay profitable when volatility – and the cycle – comes to a climax. The award-winning Bitcoin margin trading platform PrimeXBT has all the tools necessary for traders to get prepared, and get into position when the time finally comes.

Use this guide to learn which tools on PrimeXBT can help spot the top before it is in, and all the various ways to get into position when the time is right.

What A Top In Bitcoin Should Look Like

Before there is a peak in the current crypto bull market, cryptocurrencies should reach a full blown mania phase, much like the height of the dot com bubble. This means meaningless parties for the newly wealthy to mingle and network, stories of millionaires, and mainstream market participants suddenly giving out altcoin advice.

All of these signs are sentiment related signs that the market has reached mania, which suggests the market is blinded by exuberance and profits, and have been fooled by the guise of easy profits. While blinded, the rug is pulled and profits are soon gone. This exact thing happened in June 2019 in BTC, and in April 2021 and neither were the actual peak of the cycle, so imagine how strong the reaction will be when the peak of the current cycle is currently in.

To put things into perspective, Bitcoin price crashed from $20,000 to under $6,000 from December 2017 to early February 2018, wiping out $14,000 from the price. The same sized move if Bitcoin tops at $100,000 would take the price per coin back down to $30,000 or $70,000 off the price per BTC.

Technical Indicators That Can Call The Top

Sentiment isn’t the only way to tell that the crypto market is in need of a correction. Technical indicators can also act as a fire alarm that sounds when things get a little too hot. Even now, technical indicators are overheated on daily timeframes, but because Bitcoin only recently flipped back bullish on high timeframes,

The cycle will only conclude when certain indicators show such overheated conditions, The Relative Strength Index show read closer to a reading of 90 where past tops were set. The bottom of the Bollinger Bands on weekly timeframes will drop substantially to indicate the upward volatility.

Finding the exact top is a bit more challenging than knowing when the bear market has begun. Bitcoin price will need to pass through the Ichimoku cloud on the monthly timeframe, and cross through the middle-Bollinger Band on the weekly timeframe.

Charting A Path To Success With PrimeXBT

All of the tools mentioned here are available at PrimeXBT, offered for free as part of the built-in technical analysis software suite. With sentiment signals and technical indicators covered, it is time to start planning how to get into position.

Once all of the conditions suggested are met, it is time to go short. Shorting Bitcoin involves opening up a contract that is essentially a bet that the price of the cryptocurrency will decrease. It lets traders make money when the market is downtrending, while spot traders are stuck selling or holding, with no way to profit.

Going short is more challenging than it sounds, so be certain to set a stop loss above where the short was opened to protect against Bitcoin continuing to rip higher and leaving you with losses instead. Once the position becomes profitable, move the stop loss level below the entry price to instead get stopped out in meager profits in a worst case scenario situation. Bitcoin bull market peaks reverse extremely quickly, so you should know within days if you have caught the top and can continue to move the stop loss lower in profit.

Making Profits Stick With Covesting & Parabolic SAR

To keep profits, traders can move the stop loss down along with the Parabolic SAR for a trailing stop loss strategy. But if this all sounds far too complicated, PrimeXBT still has the answer. PrimeXBT is home of the Covesting copy trading module and Covesting yield accounts.

Covesting yield accounts let token holders stake idle crypto assets for a variable APY by connecting to popular DeFi protocols, while the Covesting copy trading module connects followers with strategy managers.

The benefit here is that the strategy managers do all the hard work for the follower, and the follower automatically copies any trades the strategy manager makes. Rather than performing technical analysis, followers have to monitor performance metrics focused on risk or success, win and losses, margin allocation, and more. Followers make money when strategy managers do, so picking top performers can mean serious profits.

Be Ready For The Bitcoin Bull Run Reversal

Whether you want to manage positions on your own, or let someone else do it for you, PrimeXBT has something for everyone. Sniping the Bitcoin peak is a lot more possible when the proper tools are used, and this platform has all of them and more. Even more importantly, the short positions and stop loss orders are there to protect capital and keep profits coming even during a downtrend.

Bitcoin’s next bear market could last several years, but not before the peak is reached at prices speculated to be at $100,000 or higher. If you aren’t already long, it might be too late for you, but there is still plenty of time to plan and get into a short position for when the Bitcoin rally ends. Are you ready for the bull market peak?