Today I was browsing Reddit and came across this... look familiar? Well in my opinion, it looks very similar to the crypto market cap history.
Where are we?
That's the billion dollar question, where are we? Many believe we are in the anger stage as most of the panic sellers have sold already, and I agree! I feel like we're in the anger, moving towards the depression stage. If crypto can hold at around $250 billion market cap or falls to around $200 billion, I feel like we could see another bull run on the way.
Key aspects of this cheat sheet + some anecdotes
What goes up, must come down!
- That's the same with crypto. I remember in December feeling that Euphoria of going increasing my original investment by over 7000%, feeling I could be a millionaire in a couple of weeks at the age of 18 and how I felt I was invincible.
- Fast forward to January, there was an excuse for all the dips, and everyone had reasons to be optimistic and this hive mind of we're just cooling off until the next rally became set in stone for many like myself, but the markets kept falling.
- Chinese New Years passed and still no bull run... Regulation news came out bullish but still bearish market... Soon people started to panic and sell, which caused a dominoes effect causing more to panic and sell before finally we started to stablise a bit around $300 billion. Then more and more dips happened until we're at where we're at now.
What goes down, must come up!
- This is also very important. You can see from the simplified market cycle that right now we are in the trough, also the point of maximum financial opportunity. Crypto has followed this sort of cycle since the very start, with massive bull runs and massive bear runs and right now we're in a bear run. This is where opportunities come from and how millionaires are made, this is where we should be watching the markets and accumulating, positioning ourselves for the next bull run. I'm still very optimistic about the future of crypto!
I'm NOT saying to buy in now!!
- Despite the above, I'm not saying now is the best time to buy in. We're in a bearish market right now but we know it'll be bullish again... however we don't know where the turning point is! Is it tomorrow? Is it next year? No one really knows (unless you're a market manipulator).
- All we can really do is prepare for more dips by selling small portions when the price rises and buying back when it does fall so accumulate more or just hodling and making money in real life so we can buy the dips, but remembering to NEVER invest more than you can afford to lose!!