Navigating this bull market and profiting can be harder than it seems.

Navigating the cryptocurrency market strategically during a boom is not just about skill. It is art. Flexibility is constant. Volatility measures the price movement of assets and requires a sophisticated approach from players in the market. Similar to tides and tidal currents, they can be navigated strategically.

Solving market congestion dynamics

During the 2021 bull run, Bitcoin (BTC) topped $69,000, while Ether (ETH) did the same at $4,800. Although the market hit an all-time high of $3 trillion in market capitalization, that figure sits just under $1.7 trillion as of Dec. 15 — a difference of more than 30 percent. Although significant, the comparison obviously doesn't do justice to what a rollercoaster the market has been.

Understanding the driving forces behind that dynamic is key to navigating it. Market sentiment, technological breakthroughs and regulatory developments play crucial roles. Analyzing social sentiment, news sentiment and technical analysis indicators is critical to understanding prevailing sentiment and adapting to market dynamics.

Related: With Bitcoin's Half Months Ahead, It Might Be Time to Go Risky

Beyond surface-level incentives, variables that contribute to the complexity of crypto swings include global economic conditions, investor speculation, partnerships, market liquidity, and halving events (for certain cryptocurrencies).

Basic analysis

The foundation of any successful marketing strategy is the quality of fundamental analysis. A principle supported by the efficient-market hypothesis (EMH) is that cryptocurrencies without strong fundamentals consistently outperform with strong fundamentals.

This hypothesis has been tested in various markets and underlines the importance of fundamental analysis in navigating crypto surges, giving investors a compass to identify projects with great potential. Staying informed on developments and narratives in crypto requires the use of research and analysis tools like Defillama (one of my go-tos). Real-time data and deep analytics are helping you track trends and make informed decisions.

The art of mastering technical analysis

While fundamentals set the stage, technical analysis is scripted. Indicators such as moving averages, relative strength index (RSI) and Bollinger Bands identify market trends. Technical analysis has become an art form among traders, influencing trading decisions and increasing annual incomes for those who know the intricacies. Beyond chart patterns, understanding market psychology is about enabling traders to make informed decisions that have a strategic impact on the crypto market. All exchanges offer these tools. TradingView is a top choice for more in-depth analysis.

During short-term swing trading in the 15-minute time frame, the RSI indicator is my north star. Its simplicity, versatility and functionality as a Momentum Oscillator helps identify overbought and oversold conditions, indicating potential reversals or buying opportunities. My own trading decisions are a mix of technical and fundamental analysis, evaluating trend patterns, support and resistance levels, market sentiment, broader market conditions, token/project-specific developments and relevant news events.

Know when to sell

“The year after the Bitcoin halving is usually a bull year,” former Binance CEO Changpeng Zhao said on Twitter in July.

https://t.co/OENe6Ul4ag

— Binance (@binance) July 5, 2023

The planned Bitcoin halving in April will see the number of new bitcoins awarded to miners halved from the block reward of 6.25 bitcoins to 3.125 bitcoins. JPMorgan analysts estimate that 2024 will halve Bitcoin mining costs, which could create a new price floor. As a savvy trader, you can take advantage of these predictions by strategically finding assets that can work on Bitcoin's coattails, and knowing when to exit.

The process you take to conclude when selling your crypto is a subtle process that requires systematic market analysis, risk assessment and a deep understanding of your financial objectives. I dive into projects that I see solving critical problems in the early stages. I do this to contribute to a positive change that affects the world and make it a little better. It is my fullness. In my experience, when you solve a real problem, you will eventually make a profit. I make a profit when I get some cash reward from a project.

This strategy doesn't work for everyone. One thing to consider is setting pre-defined profit targets. It is often wise to retain profits if the investment meets or exceeds expected returns. Avoid greed and you will be fine.

In addition, it is important to get a general evaluation of the cryptocurrency. A rapid and unsustainable rise in prices indicates overvaluation, which can be expected by most, and may be an opportune time to sell, especially if the fundamentals have deviated significantly. These fundamental factors include changes in project development, underlying technology, or regulatory framework that could weaken the cryptocurrency's long-term potential.

Include external factors such as significant news events, economic conditions and changes in market sentiment when making decisions. Ultimately, you'll gain a holistic approach to managing your cryptocurrency by aligning your sales decisions with your risk tolerance, financial goals, and portfolio optimization needs. Regularly reviewing your investment strategy with these factors in mind can contribute to an active and informed stance on the market.

Related: BONK, PEPE and SHIB are threats to crypto.

The best trades I've made have been by paying attention to what's being said in the industry. My most successful trades (“alpha”) have come from being proactive and proactive in finding information and acting on it before it becomes headline news. For that, it helps to join “alpha groups” and trading channels. You hear about updates on these platforms before they hit the market. These updates give you a short window to take a position before a large percentage of the market is done.

That's how you win. Conversely, the worst trades I've ever made have come from being too hasty. Composure is a good trait to possess as a trader. As the saying goes, “timing the market is more important than timing the market.”

Navigating the market requires more than floor-level strategies. It requires a comprehensive understanding of the sub-factors that define the blockchain space. Beyond analytics and statistics, in the industry's delicate dance of blockchain trading and investing, it takes wisdom to recognize that strategy is more than just a tool. It's what we use to pursue success in marketing.

This article is not intended for general information purposes and should not be construed as legal or investment advice. The views, ideas and opinions expressed herein are solely those of the author and do not necessarily represent the views and opinions of Cointelegraph.