As a crypto trader, it’s important to always identify the type of price action you’re in.

There are 3 main market conditions:
Uptrend (green)
Downtrend (red)
Sideways range (white)
Most traders struggle when the market transitions, from uptrend to downtrend or from downtrend to a range.
That’s because the trades you take in each environment are very different.
In an uptrend, you mainly look for longs.
In a downtrend, you mainly look for shorts.
In a range, you long the lows and short the highs.
Right now, many people still think we’re in a range, but we’ve broken out and are currently in an uptrend.
They keep shorting what they believe is the range high, over and over, until they either get liquidated or take losses that are hard to recover from.
So it’s crucial to constantly reassess the market structure you’re in and adapt accordingly.