I Am Focusing on DCA Bots During This Bearish Market || Fed Rate Decision and December Fears || Fake Dump?
There is no such bad news in the market that could be causing prices to go down. Even the war situation is improving to a great exten and things have now reached the stage of negotiations. The day before yesterday, when the Fed rate announcement was made, the interest rate remained unchanged and this was expected.
All investors and retailers already knew about it, so it should not have had any negative impact on the market. However today we saw Bitcoin make a sharp dump and our beloved HIVE coin also dropped by almost 11%, followed by a recovery of around 5%.
Let's discuss why this happened in the market. Usually when the Fed keeps interest rates unchanged, the market enters a consolidation or range bound phase. But what is the main reason behind this dump?
December Fed Rate Fears – The Main Reason Behind the Market Dump
First of all, the war situation is going to be resolved through negotiations and discussions. If this happens it will be good news for the market. Apart from this the Fed kept interest rates unchanged which should not have had any bearish impact on the market.
But the real point is that the upcoming Fed announcement in December is indicating a possible interest rate increase which is certainly a bearish move and its impact is already becoming visible.
Although there is still no clear statement or confirmation about whether the Fed rate will increase or decrease in December, investors are now playing it safe. They are exiting the market and waiting for the December Fed rate announcement.
Now because this was a temporary dump I can even call it a fake dump. I feel that a good market recovery is still possible and there is a chance that the market will once again retest its resistance level which is around 80K.
My DCA and Grid Bot Strategy for Silver and HIVE
Along with this I want to share an excellent trading tip that I am personally practicing, and at the moment I am trading silver.
Remember that Binance's bot feature is extremely important. We are living in the age of AI, so we should take full advantage of these bots. At the moment we have Arbitrage Bots, Futures Bots, DCA Bots and Grid Bots and these are extremely important tools that we should use to their full potential.
Currently I am focusing more on DCA and Grid Bots. Since the market has now turned bearish, my plan is to invest an amount in silver or HIVE using eight DCA layers.
My current silver strategy uses eight grid levels. The bot will continue buying whenever there is a dip of around 1% and the overall take profit is 3%. This means the bot will close the trade once it gets a 3% profit.
As soon as a decision is made on silver today I will immediately set up a HIVE DCA Grid because its volatility is higher. Even if I get stuck in HIVE I will not use any stop-loss. Instead I can increase my overall quantity very effectively through HIVE and STEEM conversion.
You should also consider this. If you understand DCA then make the best use of this bot because the chances of getting stuck here are very low. This is because, as your investment increases at every level your average price improves very effectively.
I hope you liked this strategy.
I hope you guys will like this post and is interesting as well. If you find it informative then dont forget to give me a support. Share you reviews in the comment section below. Thank you all for your time reading the content.
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REMEMBER: We should prepare for the unexpected and always hope for the best. Life may not be easy but you must do your best and leave the rest to God...
El 11% de caída en HIVE con recuperación parcial encaja más con salida de manos débiles que con un dump real; on-chain no muestra acumulación agresiva todavía. Lo de la Fed en diciembre es especulación, el mercado muestra que ya está descontando el escenario antes de que lo confirmen. La pregunta es si tu bot DCA aguanta otro testeo de soporte cerca de 80K sin quedarse sin bala.
Good to see someone actually running the plan instead of just posting a chart. I am doing DCA in this bear market too, but with fewer layers (four) and no bot, buying manually every week, so the mechanics you describe are new to me. That HIVE/STEEM conversion trick is the part I had not considered, and it makes sense: if you refuse to use a stop-loss, at least you are not sitting idle while the price bleeds.
What I want to know is how the 3% overall take profit behaves on the silver grid, since that is the one actually running. Does it close quickly at current volatility, or does the bot sit waiting days until one swing brings it home? Silver moving 1% dips looks patient enough for a 3% exit, but HIVE dropping 11% and recovering 5% in the same day is a different animal, and I suspect you will have to raise that target once you switch it over.
No stop-loss with a conversion plan is a braver approach than most people admit to. I am following to see how it holds if December goes the way you expect.