I got to tell ya, the psychology of the crypto market is indeed a fascinating one. No doubt the smart money is getting smarter, outperforming the masses, and making tons of money while plebs are getting flushed out constantly.
Just a few weeks ago I was discussing with a good friend of mine, the man who actually brought me to crypto, and at that time(two weeks ago) he was talking about being in accumulation mode in regards of crypto. We've both become a bit of EGLD fanatics lately.
His average entry price for EGLD was of around $40. Mine is at close to $70. The ATH of this coin was $541. If sometime in one-two years from now this thing will get back to that level($541) we're both gonna see some nice returns on our investment.
The problem is that he's now out of the equation. He sold... just a few days ago. My friend fell prey to the mass mentality of waiting for lower price ranges to buy more. I'm not saying it's not going to happen, but neither do we have any certainty in that regard.
In the pic from above you have a comparison of some of the most renowned cryptos out there and the lows they scored back in 2017-2018 and during the current bear market as well. If history is to repeat itself and altcoins will have to bleed down to 2017-2018 levels, then there's definitely more room to fall.
BUT, no one said the market has to do that. We didn't have a blow-off top during the 2021 bull market, thus why would we have a similar bear market?... It's something I've been emphasizing for a while on my shitty blog.
If the math used by my friend is on his side then he will clearly benefit from nice discounts, once EGLD will be down to something like 98% from its ATH, like ADA did in 2018, but what if that doesn't happen...
EGLD is currently 90% down from the ATH, BTC is at about 72% and most of the atcoins out there, HIVE included, have already corrected something like 80%-90% from their peaks. Waiting for the ultimate bottom might leave you bare naked scrapping the dust...
Now I'm not saying I got myself a deal with buying this shitcoin at $80, $74, and $56 respectively. It might dive as low as $30 or even more, but to me, an altcoin that is down 90% from its ATH is a hell of a deal. Funny, but this friend of mine got inspired by this move by some dude on the internet saying his waiting to buy EGLD for $5.
Good luck with that.
Thanks for your attention,
Adrian
