Paper Hands Syndrome
We have been in a bear market in the crypto space for around two and a half years now, people have been patient and have slowly been accumulating positions over this period to prepare for the next big macro bull market cycle we see in the market. Today is 23rd August 2020 and already people are calling for a top in the market, statements like 'We are going back into another bear market' are being tossed around like wet paper...
Just look at the chart above, it does not look at all like a retrace back into a bearish market in my opinion, especially not on a high timeframe macro scale. There is nothing wrong with the market pulling back and generally, it just means that the market is healthy, there is nothing worse than a market that does not pull back and then just dumps in one swoop to the downside. What we want is higher highs and lower highs consistently holding.
Technically speaking the price of bitcoin could fall all the way back down to $9650 and still remain bullish HTF, all that matters right now is that we focus on the HTF support levels that are key to holding bullish momentum for the coming months and years ahead. If you are worried about day to day activity on BTC when it drops 4% then your probably not cut out for this market and are way over-leveraged when it comes to your positions.
The fact of the matter is that if your willing to cash out your portfolio at $12,000 on Bitcoin and $400 on ETH then that is perfectly fine, maybe you believe that the market will retrace which it is likely to and you're looking to buy back in around $10,000, in my opinion, this seems like a smart strategy and something that I am personally doing. But if your current thinking is that over the past 3 months we have seen a 'bull market' and now we will fall back into a new 'bear market' then you have learnt nothing over the past 2.5 years, and your hands are like paper. The current past 3 months are a special bubble that has occurred around DeFi projects and Oracles, while you may already feel like we are at ATH's and insane valuations, we are not and this is literally the same level we saw in 2018, except this time we have remained above $10,000, seeing constant buying pressure from new addresses and overall just seeing ATH transactions and adoption on exchanges.
FYI Personally I will be buying everything I can around $10,500 on BTC & $350 on ETH.