Sam Cooling
Industry Legend and Birb Nest founder Adrian Zduńczyk shared his market beating strategies for 2023 at the Blockchain Economy Summit in London – the UK’s biggest gathering of crypto companies and blockchain entrepreneurs.
With big players and more than 120 crypto journalists gathering at the event, the 6th annual Blockchain Economy Summit could stand out to be one of the most influential gatherings of the year for crypto.
A keynote speaker at the event – Adrian broke down the best trading strategies for this year, against a backdrop of difficult macro-factors such as mid-term seasonality, the conflict in Ukraine, soaring inflation, and challenging fuel prices.
Supporting my boy @crypto_birb
Let's go champ pic.twitter.com/OQzwKw7G5f
— Trader Daink (@TraderDaink) February 28, 2023
But the Polish trader explained that he believed the market bottom may now have passed.
With Bitcoin (BTC) rotating higher above the $20k threshold – we could soon see the onset of a 5th bull market in the run-up to the next BTC halving event according to Zduńczyk.
This is a view reinforced by Jeffery Hirsch’s Stock Trader’s Almanac, which highlights 2023 as a pre-election year.
Historical data over the past 80 years suggests that pre-election years following bear market periods are the best performing.
And a sensational January could be a huge vote of confidence for this theory claims Zduńczyk.
With January price action forecasting the rest of the year’s performance to an accuracy of 83% over the last 72 years.
So with 2023 set to be such a big recovery year for crypto – what are Crypto Birbs’ trading strategies for the year ahead?
Strategy 1: ‘The Trend Is Your Friend’
Zduńczyk’s first strategy for 2023 is to trust historical price data and never try to fight the trend.
Trading on trends means following the general direction of movement for market activity.
However, rather than chasing price corrections the trader suggests it’s important to seek to trade breakout trends.
This is especially true when assessing a price correction. Adrian says it’s worth waiting and finding a solid directional bounce before making an entry.
This works through the Confirmation Principle – with Crypto Birb recommending traders look for broken resistance levels, moves with significant percentages, surges in trading volume, and attractive volatility.
As for 2023’s price action? Zduńczyk suggests that all of these Confirmation Principle considerations have already been met by Bitcoin.
“The [BTC] trend has reversed – we don’t know the future, but we know the trend has changed,” said Zduńczyk.
Strategy 2: Relative Strength
With this time-tested strategy – Zduńczyk suggests that momentum behind price movements should be a fundamental consideration. The RSI is a popular indicator used to analyse the scale of recent price changes.
He went on to explained how this idea has its routes in the Momentum Principle.
“Outperforming assets will continue to outperform, and underperforming assets will continue to underperform,” claimed Crypto Birb.
In that regard, the best strategy here is to take long (taker buy) positions against strong momentum, while continually entering short (taker sell) positions against any signs of weakening momentum.
And Zduńczyk believes that this extends across entire asset classes, with the shift to the upside for risk-on assets in 2023 signalling growing momentum for the crypto space.
Strategy 3: Find The Outliers
Amid the immense breadth of the crypto market, it’s worth filtering projects to find outliers to trade.
One approach highlighted by Zduńczyk is to seek out altcoins sat at least 60% above their respective 200 Day MAs.
This is particularly applicable when attempting to trade emerging ‘narratives’ they as sweep into markets – such as the recent AI and China narrative booms.
To end, Crypto Birb explained his belief that the key to success in crypto trading is patience and education. Indeed, these are principles that the high-profile trader puts to practice.
I'm proud to announce that I successfully passed Chartered Market Technician II exam. There are not many certified technical analysts in the crypto space. I'm happy to bring you world class $BTC and crypto market insights at brand new quality & even more advanced certified level pic.twitter.com/2JN3mV3Gpy
— Adrian Zduńczyk, CMT (@crypto_birb) January 16, 2021
Ever leading by example, in 2021 Zduńczyk became the only Chartered Market Technician in his county – the result of years of work. A significant accomplishment with so few qualified technical analysis professionals in the space.
And Adrian was keen to press this education-focused message home to the crypto community.
“The more you learn, the more you will earn,” said Adrian in closing remarks.
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This article was written for Business 2 Community by Sam Cooling.
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