Not sure what to do after the Ethereum merge? Read on as we offer post-Merge price predictions for Ethereum and suggest trading strategies that you can adopt.

, this major upgrade aims to make the world’s largest smart contract network cheaper, faster and more efficient by migrating the network from a 

Keen on learning more about how The Merge impacts 

? Read on as we detail why everyone’s excited for it and the possible courses of action you can consider to take after The Merge is completed.

The Ethereum Merge is an upgrade in which the Ethereum network will change from proof of work (PoW) to proof of stake (PoS) for blocks and transaction validation.

Currently, there is another network running parallel to the Ethereum chain known as the Beacon Chain, which uses a PoS consensus layer. When the current PoW Ethereum chain merges with the Beacon Chain, blocks on Ethereum will only be produced through the Beacon Chain using its PoS consensus model. 

Why Is Everyone Excited for the Ethereum Merge?

After a six-year wait, Ethereum is finally set to merge with its Beacon Chain to become a PoS blockchain. Once this is successful, the Ethereum blockchain will become faster, more scalable and more efficient. This highly anticipated event has driven up the hype among investors, raising enthusiasm and causing the price of ETH to soar since its lows in June 2022.

As a result of The Merge, the blockchain is now more energy efficient as the PoS mechanism uses roughly 99% less energy than the power-hungry PoW mechanism. It’s believed that The Merge is also going to reduce processing times, lower transaction fees and help the blockchain scale in the future.

Currently, with Ethereum’s PoW consensus, you need to stake 32 ETH to activate your own validator on Ethereum. This has changed completely after The Merge, as rewards will no longer go to miners but to stakers instead, which levels the playing field for Ethereum community members and network participants. This offers greater decentralization and security, as it is now cheaper and easier to run a node in the future. In addition, utilizing PoS opens the door for scalability via sharding, which may someday allow for up to 100,000 

The supply of Ethereum could turn deflationary in the future if more ETH is burned during transactions than distributed through inflation. This depends on the activities that occur on-chain, and whether users feel incentivized to use the Ethereum blockchain over other Layer 1 blockchains. However, the Ethereum Foundation has said that the change in consensus mechanism will have little impact on transaction fees. 

Ethereum Merge Price Prediction: 3 Potential Outcomes

Ethereum generated a lot of hype around its Merge narrative, which took place on 15th September after some detractors were speculating about its potential delay. Fortunately, The Merge was successfully executed While the long-term impact is hard to predict, we‘ll explore three potential post-Merge outcomes and what you can do with each trading strategy in these situations. For reference, we’ll be using ETH’s price as of 22nd September 2022, which is at $1267.

Before diving into specifics, here’s a table that summarizes each trading strategy:

Ethereum's co-founder, Vitalik Buterin, seems fairly optimistic about The Merge. He made a recent announcement at the recent 

 (EthCC) in Paris. According to Buterin, The Merge will be followed by four other upgrades that would increase Ethereum's value as radically new scalability solutions become available for the blockchain.

Given that The Merge happened on time, and there are no problems migrating to a full PoS blockchain, this would be bullish for the price of ETH. Investors might start to pile in once they hear good news about how Ethereum is progressing with its future upgrades that include the Surge, Verge, Purge and Splurge. Once investors feel certain about The Merge, it could propel ETH to a new round of all-time highs.

The more Ether is staked and the higher demand is for Ethereum blocks, the more deflationary The Merge will be. While Ether would probably not be deflationary for a long while, experts are predicting 90% disinflation as a realistic outcome of The Merge.

Optimal ETH Option Strategy: Poor Man's Covered Call

If you’re bullish about The Merge and believe that the market is still underpricing ETH once The Merge has begun, an optimal ETH option strategy would be the Poor Man’s Covered Call on Bybit. To open a Poor Man’s Covered Call strategy, you’ll have to first buy an ITM call option that’s far from expiry and then sell an OTM call option that’s close to expiry. 

This strategy is designed to help traders profit from assets which are increasing in value. It replicates a covered call position, but with the reduced risk and capital requirement relative to a standard covered call.

First, buy an ETH call at a strike price of $1200 that expires at the end of November. Next, sell a call option that’s expiring at the end of October. In terms of the strike price, we’d suggest looking at contracts between $1500 to $1800 as this falls within the 0.1 to 0.3 delta range.

The exact maximum profit potential and breakeven cannot be calculated due to the differing expiration cycles used. However, the profit potential and breakeven area can be estimated with the following formulas.

 Difference Between The Call Strikes - Net Debit Paid

What could go wrong with Ethereum post-Merge? There could be future technical problems, such as competing blockchains and missing blocks, which could result in further delays. Although The Merge was successful, some have warned that failed future upgrades could affect the entire crypto market negatively, casting doubt on decentralized apps built on top of Ethereum.

The price of Ethereum could still dump even upon merging successfully. This assumes that the majority of investors are looking to dump their ETH as they try to profit from a common move known as "Buy the rumor, sell the news." In either case, investors would likely dump ETH and look for new opportunities with rival Layer 1 blockchains, such as Solana, Avalanche or Cosmos.

Additionally, many ETH PoW miners are unhappy about the transition to PoS, leaving them out of a revenue stream and rendering their mining rigs useless. Some miners have outwardly expressed their unhappiness by supporting the ETHW hard fork that continues to run the PoW chain while Ethereum's transition to PoS takes place. This negative press could definitely cause a downward spiral in the price of ETH as speculators see a fracture in the community's once united sentiment.

Optimal ETH Option Strategy: Bear Put Spread


If you’re bearish about The Merge and believe it’s a “Buy the rumor, sell the news” event, you can open a Bear Put Spread on Bybit. A bear put spread means that you buy a put option and sell an additional out-of-the-money put option with the same expiration date. It’s designed to help traders profit from assets which are decreasing in value. A bear put spread is cheaper than buying a put option only, and benefits from the price of ETH falling in addition to the time decay of the short option.

To open the trade, first buy an ETH put contract with a strike price of $1200 that expires at the end of November. 

Next, sell an ETH put contract that also expires at the end of November. When it comes to the strike price, we recommend selecting a put contract between $800 to $1000 as these put contracts fall within the 0.1 to 0.3 delta range.

 Difference Between The Put Strikes - Net Debit Paid

Long Put Strike Price - Net Premium Paid (Premium Paid - Premium Sold)

In a situation where the event has been priced in, the price action would remain neutral, and would neither pump nor dump much. Investors might HODL their ETH through The Merge, as they believe in its long-term value appreciation. If there happens to be little buying pressure, this would cause the price of ETH to remain flat.

This is possible because even after The Merge, Ethereum as a project still has a long way to go before it’s considered a finished project when it comes to overall scalability. Vitalik Buterin mentioned that "

" and there will still be much to do in the months-long cleanup period. While there might be small price spikes here and there, the overall price of ETH would remain flat in general under this neutral post-Merge price prediction scenario.

Optimal ETH Option Strategy: Delta-Neutral Trade

Also known as the cash-and-carry trading strategy, this popular neutral ETH trade involves longing spot and shorting long-dated futures. By performing a delta-neutral trade, the trader's position is neutral regardless of ETH’s overall price direction.

Traditionally, ETH Futures are always priced higher than ETH spot. However, because this trade idea is exremely popular among active traders, ETH futures are now priced lower than ETH spot prices. This presents another possible delta-neutral arbitrage trade that depends on futures prices eventually going back up over time. 

To do this, you would need to long the ETH futures contract and short the ETH perpetual contract, and carry it until after The Merge where hopefully ETH futures will be at a premium instead of the discount it is having now.

This strategy is possible because there’s huge selling pressure on the 

 Futures, which causes the price of ETH futures to drop lower than the spot price. With the current ETH DEC futures price being lower than 

 prices, you could buy ETH DEC futures while shorting ETH perpetual contracts for the same amount. This effectively applies a delta-neutral effect to your position without causing you to carry any directional risk.

As of 22nd September 2022, ETH DEC Futures are priced at $1252. To execute this strategy you would need to long ETH DEC Futures and Short ETH Perpetuals for the same amount denominated in ETH. For each position, you would earn the difference between the futures and perpetual contract. This would be about $15 per trade if we use current prices as a gauge.

Do take note that you will likely pay a negative funding rate for short-selling ETH due to the popularity of this strategy.

With Ethereum migrating to a PoS blockchain, you can currently earn yield by staking your ETH with 

. Currently, you won't be able to trade, send or sell the amount you’ve staked, but you may withdraw your ETH balance at any time unless you’ve chosen fixed term staking.

Here’s how you can start earning yield on your ETH with Bybit:

Your first rewards payout should appear two days after each deposit. Your rewards payout depends on the amount of ETH staked, and should appear daily after your yield has been calculated.

Even as The Merge is successful, Ethereum enthusiasts continue to speculate about the uncertain future of ETH's price due to tough macroeconomic conditions and Ethereum's pursuit of decentralized scalability. If you plan to buy Ethereum in the near future, it’s worth looking through the above bullish, bearish and neutral situations and their strategies, in order for you to make the best investment decision you can. In the long term, Ethereum could become the most valuable blockchain if it follows through with Vitalik Buterin's vision, with The Merge being a significant step in the right direction.

With all the buzz around The Merge , it’s important to understand the changes that would be taking place following Ethereum's upgrade. Head on over to Bybit Crypto Insight's 

 as they go deep into the key changes and shed light on some misconceptions regarding this major catalyst.

The Merge has also brought about the development of a hard fork (Ethereum PoW) of the current chain. More information on Ethereum PoW and whether it would aid miners post-Merge can be found 

. In addition, those interested in the speculation around Ethereum PoW, may refer to our 

 in collaboration with Nansen on whether smart money has speculated on ETHW. Once you've fully understood the risks and potential of investing in ETHW, you can start trading the

Whether you’re a long-term investor or short-term speculator, you can invest in ETH and all other kinds of cryptocurrencies by 

 and beginning your crypto investing journey today.

Intermediate

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Ethereum Merge Price Prediction: How To Trade ETH Post-Merge

Excited about the Vasil upgrade? Find out more about Cardano's Vasil hard fork and how you can profit from it with out ADA trading strategies.

As Cardano pushes toward their latest major upgrade, the Vasil hard fork aims to improve the network by making it faster, more functional and secure. 

According to the team, the Vasil hard fork, previously said to come in June, is set to go live on September 22 or about a week after The Merge takes place. Read on as we detail what is in store for Cardano and the possible courses of action you can consider to take advantage of the upcoming volatility.

The Cardano Vasil Hard Fork is an upgrade in which the Cardano network will become more robust and scalable as it fixes security loopholes, boost connectivity, and improve the overall functionality of the network.

In 2021, Cardano introduced smart contract compatibility after their previous upgrade known as the Alonzo hard fork. This feature has greatly helped the Cardano ecosystem as many new decentralized applications (DApps) are now building their platforms on the Cardano blockchain.

How will the Vasil Hard Fork improve Cardano?

Prior to the upgrade, there were several Cardano Improvement Proposals (CIPs) posted on the forum on how to improve the overall state of the Cardano blockchain. The Vasil hard fork will roll out many of these CIPs and work on fixing any bugs or security loopholes. There were three critical improvement proposals made in line with one another: CIP 31, CIP 32, and CIP 33.

CIP 31 introduces a new reference input to facilitate access to information stored on the Cardano blockchain and allows anyone to look up outputs without processing them. This means that DApps can now access transactional output without having to recreate it as before.

CIP 32 is simple and aims to bring an on-chain data storage feature for the community and developers. This is expected to improve the decentralization of Cardano's structure.

CIP 33 will allow for lighter transactions, quicker processing and lower fees. It points the Cardano Virtual Machine to a reference script instead of having to include the whole script with the transaction. Since apps built on the blockchain are written in a programming language known as Haskell, it has to be converted into a different language for smart contract compatibility. This results in slower performance and increased cost when making transactions due to the additional transfer of app logic along with the transaction. 

Other small improvements include CIP 40 and diffusion pipelining. CIP 40 will introduce a new type of output transaction and diffusion pipelining is said to improve block transmission without full validation. All of these changes put simply, will increase the throughput of Cardano and improve the development of smart contracts and DApps.

The Vasil hard fork has been getting a lot of attention from the Cardano community. While the upgrade is largely overshadowed by The Merge, we‘ll explore three potential outcomes of the Vasil hard fork and what you can do with each strategy. For reference, we’ll be using ADA's price as of 15th September 2022, which is at $0.47.

According to Cardano's founder Hoskinson, the Vasil hard fork will be the most complicated upgrade in Cardano's history. The current upgrade will include changes to their smart contract language and new primitives to further optimize the blockchain.

The crypto community is very optimistic about the upgrade and expects the price of Cardano to move upward from now until the end of September. It is clear that hard forks have been a catalyst in pushing the price of ADA up previously. Of the last two upgrades, ADA prices have soared by more than 10 times, and the latest Alonzo hard fork in 2021 saw the price of Cardano soar more than 3 times in less than 3 months. 

Additionally, the blockchain is set to become a developer's paradise which could eventually lead to more usage of the blockchain should useful DApps start to appear on Cardano. This is a positive sign for investors and some might look to pick up some ADA if the hard fork commences as scheduled on September 22.

Optimal Strategy: Stop Market Leveraged Long Order

If you’re bullish about the Vasil hard fork following its previous trends and believe that the price of ADA will once again soar upon a successful upgrade, an optimal strategy would buy a leveraged perpetual token ADA2L on Bybit. To open a stop market long order, you have to change your order type from 

 then set your entry above the resistance levels for ADA and choose the amount you would like to enter into the trade.

This strategy is designed to help short term investors take advantage of leveraged positions to increase their profit when an asset goes up in value. Leveraged tokens have rebalancing mechanisms and could be seen as buying into perpetual contracts without the risk of liquidation.

First, check the ADA chart for an area with strong resistance. You can use an indicator like the 20 Weekly Moving Average which shows a strong resistance for ADA between $0.51 and $0.58.

To open the trade, ensure that you have funds in your Bybit Spot Trading wallet. Next, buy the ADA2L leveraged token above the resistance area at a price of your choice, using the stop market order. This would tell the exchange to execute your order if ADA goes above your price target.

 Difference between Entry - Exit before rebalancing

Sometimes there might be unforeseen problems before the upgrade which could cause sentiments to turn negative. We have seen this with the Vasil hard fork previously as it was originally pushed from June to July and now to September. 

While some think the Ethereum merge could be beneficial for the price of Cardano, many believe a successful merge could see ETH taking market share away from ADA, this could cause a bearish short term outlook for Cardano regardless of the completion of the upcoming Vasil hard fork.

Another bearish factor could be the lack of developer interest after the upgrade, which could be due to the complexity of their programming language. As one of the slower growing Layer 1 ecosystems, Cardano has seen competitors like Solana and Near grow over 4 times in developer size despite having a much smaller market cap than Cardano.

Optimal Strategy: Stop Market Leveraged Short Order

If you’re bearish about the Vasil hard fork and believe the hype around it will fizzle out after the upgrade, you can set a stop market short order on Bybit. A leveraged short order is the opposite of our previous example, which means that you will be entering a short position of ADAUSDT perpetual contracts with leverage.

It’s designed to help short term investors take advantage of leveraged positions to increase their profit when an asset goes down in value. Entering a short position with leveraged can be safer than purchasing the underlying contract as there is no margin or liquidation price to worry about.

First, check the ADA chart for an area with strong support. Similarly, you can use an indicator like the Fibonacci Retracement which shows strong support for ADA at around $0.43.

To open the trade, ensure that you have funds in your Bybit Spot Trading wallet. Next, buy the ADA2S leveraged token below the support area at a price of your choice, using the stop market order. This would tell the exchange to execute your order if ADA goes below your price target.

While this seems unlikely to happen due to historical data, we should not leave out the possibility of a non-event. This happens when the market decides on the value of a coin before its event and moves before anything occurs. In this situation, the price would trade sideways which means ADA would neither pump nor dump.

Since you can stake ADA on Cardano without sending your coins out (unlike Ethereum), long term holders might continue to stake their ADA while earning yield. This combined with a low buying pressure could cause the price of ADA to stay neutral. This could be possible as Cardano has been known to roll out developments at a slower pace and the community could just see the Vasil hard fork as another upgrade among many others in the future.

This is a popular neutral strategy that involves buying spot assets, staking them and shorting the same amount of assets. This would allow you to earn from the staking yield instead and ignore any price movements. 

. If you still have USD, you can short the same USD amount on 

 to hedge your position, and proceed to stake your ADA. If you don't have anymore USD, you can use half the ADA you bought and short it on 

 to hedge your position, and stake the remaining half to earn staking rewards. Both methods will ensure you are delta neutral, but do take note of funding rates and liquidation prices. 

You can also hedge using leveraged tokens but ensure you use half the amount as they are innately leveraged, however, because they get rebalanced daily, it is not recommended for long term holds. 

As Cardano runs on a PoS blockchain, you can earn yield on your ADA by staking them with 

. Similar to our other staking products, you won't be able to trade, send or sell the amount you’ve staked, but you may withdraw your ADA balance at any time unless you’ve chosen fixed term staking.

Here’s how you can start earning yield on your ADA with Bybit:

Your first rewards payout should appear two days after each deposit. Your reward payout depends on the amount of ADA staked, and should appear daily after your yield has been calculated.

Like all major upgrades, the hype around Cardano will rise as the date draws near. If you decide to pick up some ADA, it’s worth looking through the above strategies and how you can use them in the event of a bullish or bearish market reaction. Should this upgrade be successful with no delays, Cardano could become a serious competitor to Ethereum and steal some market share even after The Merge.

Cardano has been maintaining its position well in the top 10 cryptocurrency spots. However, similar to post-merge Ethereum, Cardano still has a long way to go as the Layer 1 is known for pushing out developments at its own pace. The Vasil hard fork is a step in the right direction, but if Cardano wants to hold its spot among the top cryptocurrencies, it will need to get more users onboard to its ecosystem.

Whether you’re a long-term investor or short-term speculator, you can invest in ADA and other kinds of cryptocurrencies by 

 to begin your crypto investing journey today.

For an abridged version of our recommended trading strategies, check out our handy infographic below.

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Cardano Vasil Hard Fork: 3 Trading Strategies To Consider

In the green and want to lock in your gains? Make sure to quit while you're ahead with these crypto take-profit strategies.

, creating endless opportunities for buying, selling, and taking profits when the time is right. While there's no magic formula for timing the market and knowing when to take crypto profits and get out or when to stay put, there are several tips and strategies you can employ to maximize your gains when taking profits in crypto.

If you're thinking of taking your crypto profits, but aren't sure how or when to do it because you lack the right crypto profit taking strategy, we’ve got you covered. From when to sell your crypto to maximizing your gains, learning how to take your crypto profits is fundamental to your trading success.

Taking profits is the deliberate act of selling crypto or another security in an effort to lock in gains after a period of appreciation. Unlike HODLing, it often involves regular trading and market participation.

The HODL strategy for taking profits in crypto also leaves a heap of coins on the table. Even more than with stocks and other investments, coins go through a number of peaks and valleys before arriving at a particular price. Investors who know how and when to take crypto profits can take advantage of these rises and dips and increase their pot by a substantial amount of coin, while taking profits along the way.

In addition to earning regular income and growing your crypto portfolio, taking profits in crypto will also help you avoid some common HODL pitfalls — one of which is buying the tops. Many new HODL investors make the mistake of buying at the end of a trend, which means they have to suffer through some turbulent price corrections and watch their coin decrease by 25 percent or more. This psychological hurdle is tough to overcome.

Most HODLers also don't know how to take crypto profits when the time comes. Since they have little experience, and no solid crypto profit-taking strategy to follow, HODLers often buy and sell at the wrong time, diminishing their potential profits.

By following a proven crypto profit-taking strategy, and understanding how and when to take crypto profits by utilizing both fundamental and technical analysis, you can master the markets and profit handsomely from the volatility crypto has become famous for.

Pros and Cons of Taking Profits in Crypto

Cryptocurrency is wildly volatile. Unlike 

or stocks, double-digit gains (or losses) are a common occurrence. In fact, it's common to see your account jump up or down by two percent just minutes after hitting the buy or sell button. Taking profits in crypto by following a proven crypto profit-taking strategy will let you take advantage of these opportunities, and outpace a HODLer in no time at all.

Pros of taking profits in crypto are as follows:

• Earn revenue while growing crypto holdings

• Take advantage of every market condition

• Learn how to take crypto profits and become an expert trader

That said, taking profits in crypto can be challenging if you don't know how and when to take them. Fortunately, developing a strong crypto profit-taking strategy isn't very difficult once you understand support and resistance, Fibonacci levels, pivot points, and other key fundamentals of 

Without proper understanding of these trading basics, however, the odds of becoming a successful trader and being able to take profits are greatly reduced.

• Requires an understanding of technical analysis

• Must follow a proven crypto profit-taking strategy

Many newer crypto investors and traders have a hard time deciding when to take crypto profits. While knowing precisely when to enter and exit a trade largely comes down to understanding price charts and technical analysis, there are a few general signals to watch for.

Another good example of when to take crypto profits is when the price of Bitcoin or another crypto you're vested in stagnates and loses upward momentum. This usually leads to price consolidation, which should serve as a possible exit signal in your crypto profit-taking strategy. However, you should wait for confirmation from another indicator prior to placing a sell order.

Similar to a change in fundamentals, your crypto profit-taking strategy should also account for changing or uncertain macroeconomic conditions. Events such as wars, pandemics and recessions can have a significant effect on the stock, commodities, FX and crypto markets. Any of these can cause major market disruptions, and can give clear signals for when to take crypto profits rather than watch them disappear.

Deciding when to take crypto profits based on fundamentals or macroeconomic conditions is one thing, but determining exactly 

 to take crypto profits is quite another. Do you set a random take-profit after a certain percentage gain, or should your crypto profit-taking strategy involve taking profits in crypto at certain areas of resistance — or by utilizing 

 and Fibonacci levels? Smart traders use all of the above.

At some point, every trade has an exit. Entering a trade is easy, but where and how you exit determines how much you profit — or lose.

When taking profits in crypto, trades can be closed according to a crypto profit-taking strategy involving the use of trailing 

 and profit targets when specific conditions are met.

Depending on your crypto profit-taking strategy, the profit target can be a specific price target or a percentage-based target. Regardless, when the price of the crypto reaches a predetermined level, the trade can be closed either manually or automatically by entering a specific target profit during trade execution.

For example, if you purchase Bitcoin at $31,710 and have a profit target of two percent, you would place an order to sell at $32,344. If the price of Bitcoin reaches this target level, the trade is closed. In a nutshell, that's how to take crypto profits with price targets.

Taking profits in crypto with this crypto profit-taking strategy also allows you to calculate a risk/reward ratio prior to entering a trade. To do so, you need to enter a stop-loss, which should ideally represent less of a price change than your profit target. This way, the reward will outweigh the risk.

Although you can never know 100 percent whether a trade will be a winner or a loser, you'll be more likely to turn a profit when your reward is greater than your risk. For instance, if your average winning trade is $11 and your average losing trade is $6, you only need to win around 40 percent of your trades to earn an overall profit.

Taking profits in crypto by utilizing profit targets as part of your crypto profit-taking strategy also makes it possible to tell whether or not a trade will be worth taking. If the risk is greater than, equal to, or even not considerably less than the profit potential, then the trade isn't worth taking — and you should wait or move on to the next opportunity. In this way, determining a profit target can actually help you filter out poor trades.

Many traders use technical analysis to identify entry and exit points in order to maximize profit and minimize risk. While there are hundreds of technical indicators, chart patterns and tools you can use to analyze crypto charts and zero in on key entry and exit points, there are a few strategies in particular worth considering.

• Paying attention to areas of support and resistance

Anyone wondering how to take crypto profits who’s interested in regularly taking profits in crypto should master these three strategies.

, should be a part of any crypto profit-taking strategy. When looking at the price chart of any crypto in almost any time frame, you'll notice certain areas where upward momentum seems to halt. These are known as resistance areas. Conversely, you'll also see certain areas where downward momentum is stopped or reversed. These are known as areas of support.

Both areas are key. Whether you have an open buy order or sell order, keep your eye on these key areas and consider exiting the trade and taking profits in crypto whenever the price nears. While the price will break through either support or resistance if the momentum or trend is strong enough, more often than not crypto prices will react and bounce off of these areas in the opposite direction.

 are equally important when learning how to take crypto profits. Why? Well, the crypto market naturally tends to push prices toward the various Fibonacci levels. By paying attention to these levels — especially retracements — and checking them as a part of your crypto profit-taking strategy, you'll gain the upper hand when it comes to taking profits in crypto.

When learning how to take crypto profits, understanding pivot points is also a must. Similar to Fibonacci and support and resistance levels, it's quite common to see price react to pivot points.

Pivot points are calculated to determine specific points where market sentiment shifts from bullish to bearish. Day traders, in particular, use pivot points for determining entry points, stops, and levels for taking profits in crypto.

At the end of the day, pivot points should be viewed as intraday technical indicators. Due to their ability to identify trends and reversals, calculating pivot points is a must when learning how to take crypto profits for maximum gain.

Regardless of the crypto profit-taking strategy used, taking profits in crypto largely depends on one's risk appetite and investment timeline. If you have years to wait before seeing a return on your Bitcoin or other crypto investment — and the nerves of steel needed to wait out huge market dips and price corrections — then HODLing may be the right crypto profit-taking strategy for you.

If you're like most people, however, you want to see some profits and a return on your investment as soon as possible. You don't want to wait till years down the road; you want your venture into crypto to pay out right away, again and again. Chances are you also don't have the stomach for large downswings and seeing your account in the red. If this sounds like you, taking profits in crypto is definitely the right move.

Sure, taking profits in crypto takes practice and some time spent learning when and how to take them. However, by investing a little time into learning how to execute the right crypto profit-taking strategy, you can multiply your potential gains, allowing you to grow your crypto portfolio much faster and begin enjoying the fruits of your labor.

Reinvesting the Profits You Take in Crypto

After taking profits, many crypto investors choose to keep a portion of those profits, and reinvest the rest back in the crypto they just sold. They do this by selling high when the price begins to stall and consolidate, and then they wait for it to rebound off of a pivot point, support level or Fibonacci level before placing another buy order.

By actively trading and reinvesting your profits in this fashion, you can earn substantially more than you could by simply buying and HODLing for years, months, and even weeks or days. However, doing so and becoming consistently profitable takes fundamental knowledge of the markets, the right crypto profit-taking strategy, and the ability to stick to the strategy or adapt to market conditions as needed.

Another option is to employ strategies that allow you to build up your portfolio of principal coins, while investing in other ICOs and innovative coin projects. By going this route, you aren't just transferring Bitcoin into dollars and into your bank account for spending. Instead, you're reinvesting it into newer coin projects and technology with much more upside potential.

For example, if you traded 0.10 Bitcoin (BTC) and converted it into 0.20 BTC, you could reinvest the 0.10 BTC you earned as profit into a new type of coin or ICO — perhaps with the potential to provide a 50x or 100x return. If your gambit is successful, you would be an early investor who’s able to reap substantial rewards.

This crypto reinvesting strategy is ideal for investors looking to build their portfolios with a variety of high-return coins without taking too much risk. Both of the above strategies, however, offer amazing return potential and solid protection from future losses. Each also allows you to gain from the volatility of crypto, and from the nearly constant emergence of new coins and crypto technology and services.

As you can see from the examples above, as well as from thousands of crypto success stories, the right trading strategies can help you make money with digital currencies time and again. However, before you even begin thinking about taking profits in crypto, you must get used to recognizing certain cryptocurrency signals or "tells" in order to know when to buy and when to bail. The more experience you gain and the more you learn about how these unique assets work, the more profits you can expect to take.

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Crypto Take-Profit Strategy: When and How to Take Profits

Fearful of price weakness and bearish sentiments? Make sure you spot the upcoming bearish reversal with the Bitcoin death cross pattern.

 and other cryptocurrencies as long-term assets to buy and hold with the expectation of appreciation over time. Others take a more active approach, and regularly buy and sell cryptos by studying the charts, reading the markets, and identifying telltale signs of reversals in price momentum and profit opportunities.

The Bitcoin death cross is a chart pattern formed whenever the 50-day moving average crosses over and below the 200-day moving average, signaling a long-term downward swing in price momentum.

Bitcoin’s 50-day moving average is nearing its 200-day moving average and is now at its closest point since 2015. A crossing of the two lines would signal fresh weakness and a move technical traders have dubbed the crypto “death cross.” If you’re wondering about a crypto crash, along with many other current traders and investors, a Bitcoin death cross may provide the answer.

The Bitcoin death cross pattern is formed using the 50-day and 200-day MAs, and with these longer time frames the MA lines are affected less by short-term price movements, and more by long-term sentiment. In other words, they tell you what the general tone of the Bitcoin market is. Of course, these MAs and the death cross pattern can be used for other cryptos as well.

The 200-day MA is plotted according to a much longer time frame than the 50-day MA. This means the 200-day MA tracks short-term prices less closely than the 50-day MA. So when the 50-day line crosses below it to the downside, it indicates short-term momentum is declining against the last 200 days. In many cases, this translates into a reversal of the long-term price trend. The crossing and growing divergence of these two MA lines is known as the Bitcoin or crypto death cross.

While this chart pattern can signal trouble for long-term Bitcoin (and other) crypto investors, others often see it as an opportunity to profit from the shift in momentum — or to bring out their “inner Warren Buffett” by buying low and acquiring the asset at a discount. As he once famously said, “When there’s blood in the streets – buy.”

You already know that a death cross occurs when the 50-day MA crosses below the 200-day MA. However, death crosses form in three stages, and understanding these stages will help you not only spot a Bitcoin death cross when it occurs, but prepare for it by anticipating it — and ride it out until momentum shifts back into buy territory.

The three main stages of a crypto death cross include:

Price action always consolidates after an upswing. Sometimes, it breaks out and continues trending upward. However, in other scenarios, the price turns sharply lower and breaks from the uptrend. This consolidation period provides the very first clue to a possible Bitcoin death cross and upward trend reversal. During this stage, the 50-day MA is almost always still above the 200-day MA.

At this crucial stage, the 50 MA crosses underneath the 200 MA, creating the Bitcoin death cross and a bearish backdrop for the crypto market. Some interpret the death cross as a precursor to an eventual buying opportunity; some see a selling opportunity, and still others wonder if crypto will crash, choosing to remain on the sidelines.

At this final stage of the crypto death cross, price action continues to advance lower as the two moving averages diverge, often resulting in a new downtrend. In a strong downtrend, the 50 MA will act as dynamic resistance and the price action will remain below the 50-day MA for several periods.

Pros and Cons of Analyzing Death Cross Patterns

As is the case with so many things in life, each side has its merits. The Bitcoin death cross is one of the most powerful chart patterns, but it does have its limitations. Nonetheless, it’s used by seasoned analysts around the world, and widely considered a key signal for the current and future momentum of Bitcoin and other cryptocurrencies. Let’s look closer at the almighty crypto death cross and the arguments made by both sides.

Pros of Analyzing Bitcoin Death Cross Patterns

• Indicates long-term change in trend direction

The death cross owes much of its popularity to the pattern’s proven track record of accurately predicting major corrections and downtrends. According to Bitcoin’s chart, the crypto death cross has appeared a few times in Bitcoin’s history, and each time the price has dropped right on cue.

While some death cross patterns end up reflecting larger downturns than others, they all result in significant median losses the following month. Imagine having sold when a death cross formed prior to “Black Tuesday” in 1929 — or even when the last Bitcoin death cross formed in 2020. As a result, you would have been spared from some serious volatility and losses.

In addition to their soothsayer-like abilities, crypto death crosses are also fairly easy to understand, identify and use. Even those who are new to charts and technical analysis can add the pattern to their trading toolbox.

Cons of Analyzing Bitcoin Death Cross Patterns

There are some terrific technical indicators, but none of them are perfect. Despite the Bitcoin death cross’s track record and popularity, it is a technical indicator — and thus has a few flaws.

The death cross is also what technical traders refer to as a “lagging indicator.” This means it lags behind the price action, often showing what has already occurred.

By the time a death cross takes shape on your charts, the bearish momentum might already be a thing of the past. This could give you a false sell signal, which is why other technical indicators should also be used in conjunction to confirm any crypto death cross, should one appear.

A crypto death cross and a golden cross are exact opposites. One occurs when the 50 MA breaks below the 200 MA, and the other when the 50 MA breaks above the 200 MA.

A Bitcoin death cross implies a long-term bear market has arrived, while a golden cross signifies the emergence of a long-term bull market. So, both popular chart patterns indicate a strong confirmation of an extended trend — just in different directions.

Crypto death crosses have proven themselves as reliable trading signals for long-term investing strategies. However, if you like trading crypto more actively, they also represent reliable selling opportunities.

Nonetheless, not all death crosses are created equal. With stronger ones, the 50 MA can break sharply below the 200 MA and just keep on going for days, weeks and even months on end. With weaker ones, the price can continue tracking downward slowly for a short period of time before reversing back into a golden cross.

The key is using the right strategy and combination of indicators — not only to help confirm when a downtrend is occurring, but to give insight into the strength of the trend.

Despite its historical accuracy, relying solely on the death cross pattern can end up being a losing strategy. The answer is in combining the strategy with other key indicators. If the signal is confirmed by most or all of the other indicators, then you may have a winner, or rather a loser, on your hands.

Not sure which indicators to use with your Bitcoin death cross strategy? There are certain indicators most experts recommend.

After identifying the formation or possible formation of a death cross, you should expect a bearish trend change and a sharp turn for the worse. To confirm your suspicion, you need to turn your attention to another key indicator: Trading volume.

If the trading volume for Bitcoin or another crypto is high whenever a death cross forms, you can expect a much more reliable bearish signal. High volume is indicative of a big trend change in the works. After all, crypto trading is largely psychologically motivated.

If the RSI indicates Bitcoin is overbought and there’s a death cross as well, you can almost certainly expect the end of the bull run — and bearish time ahead.

Any score above 20 classifies as high, but if the score is 30 or more and a death cross is present, the question isn’t, “Will crypto crash?” — but rather, when.

Technical analysis can look a bit like hieroglyphics to the uninitiated, but patterns like the Bitcoin death cross aren’t very hard to grasp or spot when you put a little effort into studying them.

Today, we’ve learned all about the vaunted death cross. You now know when it’s time for a sell-off and to hit the door. However, don’t stop there. Learning more about the golden cross and additional chart patterns can prepare you to profit in any market conditions.

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