Crypto Assets Breakeven Guide: Breaking Out in Volatile Markets, Saying Goodbye to Tied Up Predicament

The market fluctuations of Crypto Assets are like waves, sometimes surging upward and sometimes plunging downward. This week, Bitcoin and Ethereum experienced significant volatility, leaving many traders deeply Tied Up in a quagmire. Here, Luo Luo shares practical breakeven strategies to help find a way out in the turbulent market.

1. Core Premise: First judge the trend, then set the strategy.

The first step to breakeven is to calmly assess the overall trend of core coins like Bitcoin and Ethereum, avoiding misjudgment of direction amid short-term fluctuations:

- If the long-term trend (such as daily or weekly levels) is still upward, a short-term sharp drop is more likely to be a "pullback in an uptrend." For example, since the beginning of this year, Bitcoin has generally fluctuated upward, with several quick drops followed by rebounds. Those lightly tied up can hold patiently and wait for the market to recover.
- If the long-term trend has shifted from bullish to bearish (such as breaking key support levels or forming a downward channel), then it is necessary to give up the "hard resistance" approach and prioritize reducing losses through active management, rather than passively waiting for a rebound.

2. Flexible Response: Develop breakeven plans based on positions.

The core of the operation after being Tied Up is to adjust the strategy based on the weight of one's own position, maximizing the retention of operational space:

1. Light positions are Tied Up (position ≤ 30%): Sell high and buy low to reduce costs.

Light position means having sufficient funds and room for error, allowing for active breakeven through "swing trading":

- Reduce positions during a rebound: When the price rebounds to short-term resistance levels (such as hourly or daily resistance), first partially reduce positions to lock in existing profits or minimize losses.
- Averaging down on pullbacks: Wait for the price to retest key support levels and buy back the reduced positions, continuously lowering the holding cost through "selling high and buying low," gradually achieving breakeven.

2. Heavy position Tied Up (position ≥70%): prioritize preserving "survival", then seek breakeven.

The risk of being heavily trapped is high, and the primary goal should be to "avoid liquidation and preserve capital."

- When funds are sufficient: When the price falls to a strong support level (such as around 115000 for Bitcoin), use idle funds to gradually add to positions (do not fully invest at once), lower the average cost, and wait to reduce positions after a rebound.
- When approaching liquidation: decisively cut part of the positions to release margin, ensuring the account can "withstand" subsequent fluctuations, and rearrange after market clarity to avoid complete loss due to full liquidation.

3. Technical Assistance: Use Indicators to Precisely Capture Breakeven Timing

By leveraging basic technical indicators, it is possible to more accurately determine short-term rebound or pullback signals, thereby improving breakeven efficiency:

- MACD Indicator: When the MACD green bars shorten and the DIF line shows a trend of crossing above the DEA line (golden cross), a short-term rebound is likely, and it may be a good opportunity to reduce positions; if a death cross forms and the green bars disappear, caution is needed for further declines, to avoid blindly adding positions.
- KDJ Indicator: When the KDJ three lines enter the oversold area (≤20) and form a golden cross, it indicates that the price may rebound from the bottom, serving as a reference signal for adding positions; if it enters the overbought area (≥80) and forms a death cross, it is suitable for reducing positions and taking profits.

4. Control over news: Be vigilant against black swans and seize favorable windows.

The Crypto Assets market is highly sensitive to news, and it is essential to closely monitor two types of information to provide decision-making support for breakeven:

- Positive news: For example, if large financial institutions increase their holdings of Bitcoin or mainstream countries introduce friendly policies towards Crypto Assets, it may drive prices to rebound quickly, providing opportunities to reduce or increase positions.
- Negative news: Events such as tightening regulations and industry collapses may trigger further declines, so it's necessary to reduce positions in advance to avoid risks and prevent being Tied Up.

There is no "universal formula" for breakeven; the key lies in flexibly choosing based on one's own capital strength, psychological tolerance, and market judgment. Newbies need not panic, and veterans should avoid greed—being Tied Up is not the end, but an opportunity to refine trading mentality and skills. Choosing the right method is essential to successfully break through in a volatile market!