Crypto Weather Forecast #13 - No Joke, We are in a (Drunken) Kangaroo Market
We are definitely in Kangaroo land market-wise. And as I said yesterday it´s this Roo is drunk as well,
Now I ain't kidding there is such thing as a Kangaroo market and even a Pattern called a kangaroo´s tail.
Do we like to be in a Roo market?
Well, I don't, because basically, the market ain't going anywhere. and that is exactly where we have been going since the 10th of May.
And the fact that this Kangaroo seems to be drinking heavily makes the current market even worse. It jumps up and down without any reason. The only thing this Drunken Roo market is good for is scalping and I ain't got time and funds for that.
But maybe I should because it does not look like we are leaving Kangaroo land any time soon.
There are No Real strategies to deal with these drunken bastards
So just to be on the same Roo, A kangaroo market is to be recognized by going up and down without any strong uptrend or downtrend. A drunken kangaroo market goes up and down quickly without any particular reasoning.
Should I sell or Should I Buy?
If you are going crazy by the Roo market and think about selling or buying consider the below. No Financial advice just some personal considerations.
1. Do I want to Invest?
If you are in doubt to buy or sell consider this: BTC dropped 60% from its ATH, in previous bear markets it dropped 80% before recovering. So chances are good it will dip further.
Now, Are you willing to take the risk?
Do you have funds to invest?
How long would you like to wait on your profit?
If you do not have funds should you sell your holdings to buy back the dip?
What if this is the bottom? What if it´s not and you will lose another 40% as your ALTs go down faster than BTC will.
No financial advice but personally, I have been taking a small risk. I sold some of my ALTs like 10% and put in a lower buyback bid. But I do not risk too much, current prices are low and I have some fiat to buy the last part of the dip.
I expect that buying now and planning on making a 2X on your investment will take a year until May/June 2023.
If I would not have that luxury I would sell max. 25-40% of my holdings to try and buy back the coins I sold when they drop 25%. In a matter of fact, I did that already for some of my ALTs. For me, this is all about spreading risks and chances.
Now you might want to sell some to buy back a bit cheaper or just use the current market to add some cheap coins to your bags.
2. What coins to buy?
If buying ALTs buy the top dogs, they will not drop as fast as the Low Cap ALTs and they will surge once BTC has done its first & second leg up. Ideally, you buy BTC and possibly ETH during the current and future lows, as they will be the first to recover. Once they recover the money will flow into High Cap ALTs, say top 25.
And only after those high cap ALTs have peaked, the lower cap ALTs will peak.
Of course, this is very generic and there are a million reasons why it could be different.
Have a lovely day, remember that hitting the like button is one of the few free things in life, and hope to see you tomorrow.
Previous Forecast:
Crypto Weather Forecast #12 - I was wrong! BTC did do a 20X this cycle!
The Crypto Weather Forecast is my daily take on the crypto market, sometimes serious, sometimes sarcastic, often with a wink, and Always Honest.
Post Scriptum:
Platforms where I Earn Crypto for my Content (Affiliate Links):
Torum - https://www.torum.com/?referral_code=bitcoinbaby
NoiseCash - https://noise.cash/u/BitcoinBaby
ReadCash - https://read.cash/r/BitcoinBaby
Hive - https://hiveonboard.com/?ref=whywhy
Peaked - https://peakd.com/register?ref=whywhy
Publish0x - https://www.publish0x.com?a=l9avg4xnbG
Exchanges I use
BitVavo Exchange - https://bitvavo.com/?a=C21A94C2FD
Kucoin Exchange - https://www.kucoin.com/ucenter/signup?rcode=rJ821BX&lang=en_US&utm_source=friendInvite
This is quite interesting, and backed with a well cited point to take note of. However, like in my case, this is why I prefer maintaining the concept of day-trading (scalping), which is done with the driving force of the Moving Average Convergence Divergence (MACD), along side the help of a well studied candle sticks pattern, and with it, there is no day of my trading, that I do not record profit, no matter how dip the market goes.
By maintaining this concept, such have so helped me on a progressive note, and it remain my best strategy for making more over time, than waiting for bull before making profit, as the duration I spend waiting to make that profit, with scalping, I would have made x10, or more of such profit...
However, thanks for sharing such an insightful content.
Cheers.