Guaranteed Outcomes Create Great Odds
Operating within the realm of possibilities and even better, probabilities does provide a level of predictability. Crypto has a number of repetitive behaviors. I am not going to address the halving or typical market retracements. I will however focus on behavioral dynamics that are inherent to Crypto. The following is exceptionally important in understanding the altcoin market and the tremendous opportunities it creates for those who fully understand it and are prepared for this occurrence.
Altcoin Price Action Relativity
Many times, investors miss out on the initial pumps of future gems. They wish that they could travel back in time and experience the event all over again. However, this time with insight from the future. This actually can happen and is especially true in the case of smaller cap projects. Despite the sentiment of any particular altcoin, when Bitcoin and the broader Crypto market head south these smaller cap projects take a beating. This is a rule of “Crypto Nature” and even when there appears to be initial resilience, eventually, the weight proves to be too much. The relativity ratio is multiplied many times over. This happens to the downside as well as to the upside. It is however more guaranteed in a downturn and many times more aggressive.
This plays a massive role in deciding where you are going to enter the market. If you are accumulating BTC then buying at $18K is not a bad move at all. However, consider where micro-cap projects are likely to move if BTC falls to $12K or $13K. This is yet another reason why I hold so firmly to my strategy and price targets. Many of my altcoin picks from the last cycle performed tens of thousands of percent and I aiming to try and repeat that again this cycle. Unfortunately, picking projects that everyone is familiar with will not achieve the desired outcome. This then requires me to seek out extremely small-sized market cap projects.
Leveraging The Relativity
Waiting upon cascading prices is the best way to leverage this dynamic. These tiny projects often overshoot and wick down to incredible lows during a collapse. Now, simply waiting for prices to drop is rather foolish if practiced in isolation. However, as mentioned before, my thesis continues to point to lower levels, as does the macro environment. This then changes things, doesn’t it? If you are looking to maximize this downturn, then you will do your best to plot the bottom as best as possible.
You Can’t Time The Bottom
There will always be those who are against plotting bottoms and cyclical behavior. However, what you will also find is that these individuals generally don’t experience 300X investment returns or higher. They are often quick to defend their dollar cost averaging strategies, which is fine. However, that’s what the majority practice. Meaning, that the returns experienced will be modest, like the market average. I guess it all depends on what you are aiming for.