Whale crypto trader Eugene Ng Ah Sio outlined his approach on trading cryptocurrencies in times of global uncertainty, hinting at a contrarian strategy.
What Happened: The trader said on X (formerly Twitter) he is selling when everyone is aggressively buying altcoins and starting to buy when people begin to lose faith that the market dip was just leveraged longs being flushed out.
He advized to make full-sized dip buys when global conflicts escalate and everyone is de-risking due to the fear of war. "I may eat my words in the future, but I’ve seen this playbook often enough to have decent conviction on where prices go from here,” the trader stated with regards to escalating tensions in the Middle East.
Ng Ah Sio's strategy suggests a base case of a double bottom at $60,000-$61,000 for Bitcoin BTC/USD, indicating that dip buys might be slightly premature but will eventually result in decent swing long entries over the high timeframe.
Why It Matters: Ng Ah Sio's tweet comes at a time when the crypto market is experiencing significant fluctuations due to global geopolitical tensions.
He thinks the market is not positioned for a soft retaliation by Israel, implying that many are expecting a hard retaliation, which would create an opportunity for a dip buy. Ng Ah Sio concluded by his advice to "think probabilistically and never go full retard."
Bitcoin has dipped from a local high of $65,000 after September’s interest rate cut, currently trading at $61,300, down 2.6% over the past 24 hours.
What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
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