Bitcoin appears to be perfectly approaching the $6,000 support level from back in February. With this, it is obvious that the market sentiment is getting a bit gloomy, and the doomsday analysts are crowding the media.
But of course, there are also alternative strategies to profit from the crash. One classic strategy for those who believe cryptocurrencies are here to stay is to buy the dip. If Bitcoin breaks below the $6,000 support level in April, we could even see further drops towards the next support levels at $4,922, and $3,482.
You must keep in mind that it took Bitcoin a very short amount of time to break above all these levels to reach the all-time high last year. The golden rule of any financial market is that what goes up, must come down, and Bitcoin is not an exception. Of course, those who bought the digital currency at the highs must be feeling a bit down at the moment.
Pun intended. Here, another golden investment saying comes into play: patience is a profitable virtue. And that good things come to those who wait. Some analysts are suggesting shorting Bitcoin as an alternative strategy. To me, this would be as risky as buying it at an all-time high level.
