Crypto Strategy: Using $15K Support Level to Manage Bitcoin Collateral During Bear Markets

When engaging in crypto farming, whether it's BTC or USDC, I consider that if I switch to USDC, I have closed the loan and still retain USDC plus the transaction fee. Conversely, if I've been transferred into BTC, I need to carefully calculate to prevent liquidation. I would focus on the upcoming support level for Bitcoin at around $15,000, which means that for this trading strategy, the maximum collateral I would put into a loan is equivalent to $15,000 in BTC. If I were transferred into BTC as well, I would have roughly one Bitcoin plus the transaction fee against a $15,000 loan. This approach seems more interesting during a bear market, as the risk-reward profile differs significantly from bullish conditions. It’s essential to be cautious with collateral levels, especially since the crypto market can be highly volatile, and rapid price drops could trigger liquidation on leveraged positions. In general, this strategy emphasizes the importance of proper risk management and understanding the current market support levels. Using $15,000 as a reference point for Bitcoin positions helps in maintaining a conservative approach, particularly during a bearish trend where downside risks are heightened.