Zignaly Providers Monthly Recap (September)
TL;DR
After an almost uninterrupted sequence of drops since November 2021, looks like BTC has been taking a break lately, going nowhere for over 4 months now.
This is the least ideal scenario for our strategies, which however have managed the situation really well by limiting the overall losses.
The good news is that sideways (or any other type of price action) don’t last forever, so we will keep positioning ourselves and managing our risk until a good opportunity will finally present itself.
Providers
BTC Futures
The BTC Futures Provider has been the one who has suffered the most from these market conditions, giving back some of the profits generated until June. However, once again this system has been able to also manage risk extremely well, limiting the overall losses during this adverse price action.
BTC has been pivoting around the 2017 ATH price level for several weeks now, which makes this look like a big decision point for the market.
However is important to keep in mind that crypto has now a high level of correlation with traditional markets, so it will likely be affected by what the stock market, and the S&P500 in particular, does next (so far it keep registering new lows).
Of course, nobody knows what the market is going to do and when, and this is the main reason why we trade such strategies, as they allow us to capture opportunities whenever these present themselves, both to the upside and the downside. Until then, we will be mostly managing our risk and keep taking positions for potential opportunities to come.
ETH Futures
I have been particularly satisfied with the way the ETH Futures Provider has reacted to this long sideways, in fact, while as mentioned many times this Provider is potentially a lot more volatile compared to the BTC Futures one, the ETH Futures Provider has shown a great ability to hold a position without being affected by all the noise generated in a sideways market such as the one we have been experiencing.
This, in turn, means being able to hold more profits and being able to compound them more quickly when the market will finally decide which direction to take.
Conclusions
Just a short recap from this month to keep you guys up to date with what is going on.
In general, during a bear market such as the one we are experiencing now there are opportunities but they are rare and hard to catch, so it’s all about playing defense most of the time and seeing what the market does next.
As usual, if you have any inquiries, suggestions, or doubts, feel free to DM me on Twitter or Telegram, or check my other Medium articles and Guides.
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