Time To Buy The Dip Or Just The Beginning? How To Profit During A Downtrend With PrimeXBT

Fear is everywhere, and there is a risk that asset prices will fall further off a cliff. At the same time, prices have fallen so much that it is also time to consider that the downtrend is coming to or has already come to its conclusion.

Because bottoms are only confirmed in hindsight, no one truly knows if it is time to buy the dip in crypto and stock indices or if this is just the beginning of a more arduous downtrend. When crypto winter has you frozen in fear, and the bear market feels like it might never end, you have to be cautious yet bold, considering all possibilities.

With the flexibility and power of PrimeXBT trading tools, it is still possible to profit during a downtrend while preparing for a potential reversal to an uptrend. Here’s how.

What Happened To Global Liquidity? The Backstory Behind The Bear Market

Rewind to two years ago. The world had just been stopped in its place by the first major pandemic in nearly 100 years, and markets were collapsing as investors feared the worst. The Federal Reserve and other central banks stepped right in front of the bullet and slashed interest rates to stimulate the economy.

And stimulate it did. The economy began booming, with asset prices soaring, unemployment rates shrinking, and consumer demand at an all-time high. Demand ran too hot and, in turn, prompted the Consumer Price Index, a key measure of inflation in the United States, to spike to the highest level in more than 40 years.

Much like the Fed was responsible for preventing a collapse around Covid, the central bank is also tasked with reeling in inflation. This is no easy task to perform without damaging the integrity of financial markets, but the hawkish Fed is still hopeful for a so-called “soft landing.” The market, however, isn’t as optimistic and has been plummeting since interest rate hikes were announced.

The Fed Pivot That May Never Arrive: What To Expect

Markets won’t recover until the Federal Reserve relieves some pressure from its heavy hand. Other central banks are scrambling to prevent their own currencies from spiraling into collapse against the dollar’s strength, encouraging the United Nations to ask for the Fed to consider the consequences that could impact the rest of the global economy.

The Fed, therefore, might be forced to pivot before they’d like, leaving inflation to potentially rise once again. The alternative is that the Fed stands firm in its hawkish positioning, pushing global financial markets toward even more turbulence and a possible recession.

Murmurs of a possible Fed pivot have already caused some assets to surge. Bitcoin also saw significant conversion of failing European currencies like the British pound sterling and the euro into BTC – a possible hedge against a global currency downward spiral. The stock market, oil, gold, and more all spiked as the dollar saw its most significant pullback in months due to the news. But there still aren’t enough signs of bottoming just yet.

How To Buy The Dip In Crypto And Stay Profitable During A Downtrend

The Nasdaq and other US stock indices and top cryptocurrencies like Bitcoin, Ethereum, and other altcoins have lit up green to start the last quarter of the year. Bottom snipers came out in full force, hoping to preemptively catch a Fed pivot.

With PrimeXBT, investors and traders can start to buy the dip in crypto or use digital assets as collateral to take advantage of a possible reversal while staying ready for anything – such as another leg down in risk assets.

PrimeXBT trading tools let traders hedge spot crypto positions or short falling markets, so capital protection and profitability are always possible during a downtrend. The award-winning trading platform even allows traders to simultaneously hold long and short positions when things are confusing and unclear.

Build Capital With Innovative PrimeXBT Products And Services

Built-in technical analysis tools allow unsure or hesitant traders to get a better read on the market. The PrimeXBT Trading Academy provides a complete educational website with trading tips and strategies from expert traders. PrimeXBT Contests is a risk-free trading environment for weekly competitions that also allows traders to backtest technical indicators and practice trading without the fear of losses.

Applying such skills and strategies in markets like commodities, stock indices, crypto, and forex currencies is possible all on one platform with PrimeXBT. PrimeXBT has more than 100 different trading instruments under one roof, including gold, oil, S&P 500, and Bitcoin.

The Covesting copy trading module is also featured on PrimeXBT, which allows traders to become strategy managers or followers. Strategy managers have performance, and trading history tracked publicly, while followers use this information to choose who to follow. By following, all traders are copied, leaving the hard work and heavy lifting to a more successful trader.

How To Access Profit-Generating And Capital Protection Tools From PrimeXBT

All of the features outlined above are available at the official PrimeXBT website or via the free mobile application for Android and iOS smartphones. Traders can manage their positions while on the go, make deposits and withdrawals, check their portfolios, and much more.

PrimeXBT features bank-grade security infrastructure and a proprietary cold storage process designed to keep customer funds protected and safe. Born during the last crypto winter, PrimeXBT provides investors and traders with everything they need to preserve capital and stay profitable in any situation.

With PrimeXBT, you can look fear straight in the eyes and buy the dip in crypto, knowing that you can properly manage the positions and once again produce profits even if the market continues to fall further. Get the most out of the bear market with powerful PrimeXBT trading tools.