None of this is financial advice, just personal thoughts after "the dump" and what I am planning to do right now ...
I am going to post this for ADA but all charts pretty much look the same ...
People see a dump and immediately think its a bear market ... it looks like that if you play on smaller time frames ... but I argue its not a bear market at all medium/long term, and not only did prices hold up very well, but this correction was required if you want a longer bull run as it halted the parabolic move before it got way over done.
To me, this looks like the start of major reaccumulation by big time operators ... call me crazy, but here is why ...
1. The dump is being blamed on China banning crypto ... China has "banned crypto" many times before ... I dont see how this "news" is any different. They will not "ban crypto" ... in fact I think they are using crypto to evolve into the #1 world leader in this hidden financial war that normal Joe's are not realizing ... they are accumulating after bankrupting with these large spikes
2. The dump is being blamed on Elon Musk ... huh? If you are an old timer, you are not basing your bag holdings on the whims of an eccentric billionaire. If you are young and new to the market, you probably are, and you will get eaten alive by dumping and pumping based on tweets ... because operators out there who will dump when you pump, and pump when you dump ... they are much better than you
3. I expect a longer, yet volatile, recovery to cause new comers and even some long term holders to give up their coins ... the longer the recovery stretches out in a volatile trading range, the more and more people will start to think "the top is in" ...
4. Pessimism is on the increase ... the "bitcoin is dead" tribe is strong right now ... is there any better time to buy?
5. Fundamentally, nothing has changed ... it was a dump, it happens ... the freak out if more loud right now because of all the new entrants in the market ... new traders who thought they were buying a house in a couple of months have now lost everything ... this is nothing new, yet just seems scarier now because of the sheer amount of new investors who act like traders .... in fact, a large correction to weed out new comers, and new whales being eaten by old, experienced whales, was much needed ... and there will be more coin distribution from weak to strong hands over the next 1-2 months in my opinion ... price is already looking to stabilize in this new, wide trading range
Lets hope I am right. That dump could very well have been an automatic reaction to a temporary top ... it was fast, scary, and heart stopping ... but look how strong is was bought right back up ... going forward, will need to see how many shorts are loading up within this range to feed the next bull move up, which I think will be incredibly fast once this reaccumulation is over ...
I free handed a classic reaccumulation schematic on this chart .... looking to play inside this range given how wide it could be and buy/hold on the break. I can see one more move down to double bottom to scare the crap out of people before a test of the trading range high ... I think that will be a gift and plan to have buy limits down there.
I am going to post this for ADA but all charts pretty much look the same ...
People see a dump and immediately think its a bear market ... it looks like that if you play on smaller time frames ... but I argue its not a bear market at all medium/long term, and not only did prices hold up very well, but this correction was required if you want a longer bull run as it halted the parabolic move before it got way over done.
To me, this looks like the start of major reaccumulation by big time operators ... call me crazy, but here is why ...
1. The dump is being blamed on China banning crypto ... China has "banned crypto" many times before ... I dont see how this "news" is any different. They will not "ban crypto" ... in fact I think they are using crypto to evolve into the #1 world leader in this hidden financial war that normal Joe's are not realizing ... they are accumulating after bankrupting with these large spikes
2. The dump is being blamed on Elon Musk ... huh? If you are an old timer, you are not basing your bag holdings on the whims of an eccentric billionaire. If you are young and new to the market, you probably are, and you will get eaten alive by dumping and pumping based on tweets ... because operators out there who will dump when you pump, and pump when you dump ... they are much better than you
3. I expect a longer, yet volatile, recovery to cause new comers and even some long term holders to give up their coins ... the longer the recovery stretches out in a volatile trading range, the more and more people will start to think "the top is in" ...
4. Pessimism is on the increase ... the "bitcoin is dead" tribe is strong right now ... is there any better time to buy?
5. Fundamentally, nothing has changed ... it was a dump, it happens ... the freak out if more loud right now because of all the new entrants in the market ... new traders who thought they were buying a house in a couple of months have now lost everything ... this is nothing new, yet just seems scarier now because of the sheer amount of new investors who act like traders .... in fact, a large correction to weed out new comers, and new whales being eaten by old, experienced whales, was much needed ... and there will be more coin distribution from weak to strong hands over the next 1-2 months in my opinion ... price is already looking to stabilize in this new, wide trading range
Lets hope I am right. That dump could very well have been an automatic reaction to a temporary top ... it was fast, scary, and heart stopping ... but look how strong is was bought right back up ... going forward, will need to see how many shorts are loading up within this range to feed the next bull move up, which I think will be incredibly fast once this reaccumulation is over ...
I free handed a classic reaccumulation schematic on this chart .... looking to play inside this range given how wide it could be and buy/hold on the break. I can see one more move down to double bottom to scare the crap out of people before a test of the trading range high ... I think that will be a gift and plan to have buy limits down there.