How to Handle the Bear Market Properly

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In just one previous post I made I went on to think that there could be a change, but days passed and now it is more than three months from the all-time high price of Bitcoin.

What we experienced is more than probably over. We need to wake up often and not think that short-term the market can easily recover especially after all that has happened and the negative treatment of cryptocurrency.

This negative treatment that wasn't only by media,banks and governments this time, but the way the crypto hype appeared to be to the eyes of an outsider of all of this.

What people out of crypto think

All this time the only discussion was about inflation like this is a cosmic event that could happen from one day to the next. Inflation is rising in some areas and regions like Latin America and some parts of Africa were having problems for decades with inflation.

This wasn't new to them and they can deal with high inflation. Well, not as high as with Venezuela but a lower acceptable inflation level is not high risk for any economy.

We managed to convince them that Bitcoin will save the day but we didn't have something better for later.

What everyone thought was we are in it to make money fast. We were but there wasn't a need to just show to everyone that we don't care about technology.

There are pretenses and reasons to invest in any asset, not just the reason that price is rising. Those that were there to explain cryptocurrencies to the world, those that we have acknowledged as popular figures, did not make it very well.

They got roasted every time any renowned economist or someone with more prestige was asking the real questions. We have in this some salesemen like Pompliano that for their reasons only care about Bitcoin and don't even mention anything else from the cryptocurrency market.

And what Pompliano did was similar to 2017, when the Consensus convention stopped accepting BTC for payment. Pomp pitched his Bitcoin Pizza idea, which at first everyone was expecting some kind of cryptocurrency acceptance, but nope, this wasn't about it. Only credit card accepted. No BTC no lightning.

This was the tipping point of a series of events that led to the end of what we can call today: "The previous Bull run of 2020-2021".

The Bear Market of 2021-2022

This is what I tried to expain within all my writings here, on the Read Cash platform. I warned exactly where the top was and explained there was a two year bear market approaching.

But I also gave hope and I'm still thinking that any bear run is only an opportunity to buy at some very cheap prices, altcoins that will have the extreme potential to rise again into new all-time high prices.

But there is still hope for another month or so for the crpytocurrency market to escape the bearish momentum. This will be a chart similar to 2013 when Bitcoin was into a secondary accumulation zone during the summer of that year.

I give this possibility very low odds though, since that market was very immature in 2013 and volumes could grow very fast without any particular reason. It is a very different market today that will reaquire significant funds to move very fast.

Make new investments inside the bear market. In the previous one, I acquired more than a hundred cryptocurrencies and was waiting to sell in parts while the prices were rising. I was buying in 2018-2019, selling in 2020-2021.

Will be buying again soon, but probably with the beginning of 2022.

Back to Business

A trader friend of mine told me one day: "since bitcoin is going to go to $100K why you are not buying at $6k and wait for lower?"

I replied "Because it will go lower", and when it did I bough. I also bought again when it went lower than 6k for the second time in the previous year.

Patience is rewarded but buying at 6k was a great trade too. And with dollar cost average there is even better opportunities to profit with the next bull run, that will be later.