Australian Analyst Unveils Key Mistakes to Avoid in Bull Markets

Ah yes, crypto bull markets — those special times in a crypto investor’s life when their thoughts turn to mansions, lambos and quitting their job. While the potential for profits is high during bull runs, all too often investors ‘round trip’ their gains—going all the way up and all the way back down, without taking any profits.

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Australian crypto analyst, Miles Deutscher, knows the pitfalls of bull runs better than most and this morning on social media site X he shared his tips for maximising profits and minimising regret while the crypto market is hot.

Three key take-aways:

1. Have A Plan To Take Profits 

According to Deutscher, the most important thing is to have a plan to sell, before you even buy. That way you can avoid getting caught up in the inevitable bull run hype train and escape becoming just another victim of FOMO.

So how should you sell? According to Miles the best strategy is what he calls ‘laddering out’ — incrementally selling as the token price increases, essentially the reverse of dollar-cost averaging when you buy. 

This works because nobody can predict the top of the market. If you’re gradually selling all the way up, you’re locking in profits while ensuring you still have some exposure if your bag moons later on.

He recommends selling smaller amounts early in the bull run so you have plenty left for the later stages, where historically the most gains have been made.

2. Be Careful Rotating Profits 

A common strategy during bull runs is to take profits from selling one coin and rotate them into another coin to try to further increase profits, but Deutscher warns this can be a risky approach:

Although this can work in the short-term, it’s dangerous – as you’re essentially playing a game of hot potato. Eventually, the market WILL turn against you.

Miles Deutscher

If you do plan to rotate profits, his advice is to move from higher risk assets—like meme coins—into lower risk assets, like stablecoins and Bitcoin.

He said this strategy should be combined with ‘laddering out’: take profits for one coin gradually, then rotate those profits into other, lower risk coins.

3. Establish Sell Indicators

Selling gradually is a good play, but how might you identify when the top is approaching so you can start selling more aggressively and avoid being left holding the bag?

Deutscher recommends establishing your own indicator framework to get a sense of when the market is getting overheated. He suggests this could be as simple as seeing more celebrities spruiking crypto projects or seeing crypto ads during the Super Bowl.

One technical indicator Deutscher likes to look at is the exponential moving average (EMA), a weighted average of an asset’s price. He uses the 9-EMA, which looks at an asset’s nine most recent closing prices—he said if the price falls below this during a bull run it can be a signal to start selling more aggressively.

General Tips To Live Your Best Bull Market

Other general tips Deutscher offered to help you thrive during the bull run included avoiding getting sucked into social media hype — stick to your plan regardless of the Twitter (X) FOMO smashing you in your limbic system. 

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He also suggests journaling can help you keep your head and remember your goals during the headiest periods of the bull run.

Finally, Deutscher said there is no one right way to take profits — everyone has different goals and risk tolerances and it’s important to do what is right for your circumstances, not somebody else’s.