We've hit a crucial inflection point in the recent bitcoin dump, and all signs point to a drop to around $15k before we turn. This is a great time to get in on crypto, but the bear market is an opportunity for profit as well.
I think the bear will last for at least a week to give the 20-day moving average time to catch up to bitcoin's price. We've been moving too far above it for too long, and the market owes its dues.
Investors have been trying to hold the price of bitcoin at around $17k, but eventually that gas is going to run out. When it does, we're going to hit $15k fairly quickly. I don't expect $17k to hold out the weekend, and even the slightest bit of bad news in the traditional stock market on Monday will serve as the catalyst/excuse for a fall. Here's what I'm doing.
- Paying back my bank loans. I use a lend/borrow strategy on Cream. When the market goes down, it pays to tether some of the assets back, wait for a lower BTC price, and buy back the alts on the dip. I'm waiting on BTC $15K to back up the dump truck. I kept some alts just in case I don't get my drop, so I'm ok either way.
- Pulling in more resources. I believe it's a good time to pull in some more fiat. Fucking Simplex and Wyre tried to stop me, but fuck them. I've got my ways. When I buy in, I get a stablecoin so I don't get cold cocked if BTC drops while things are in escrow. Getting crypto through the correct methods takes longer, so don't lose money in escrow for no reason.
- Staying away from Dextools. Now is not the time to invest in super speculative stuff. I made the mistake of doing that at BTC$19k, and all of them are down like 60%. None of them rugpulled, so there is a chance for a comeback, but the economic cost of using that money is still present. You get the super speculative investments at the very bottom.
- Looking for good yield farms. Now is a great time to identify some shitcoins to start farming. If I can buy in at a bottom on a shitcoin, it puts a floor on the invariable dips that speculative coins have. I want to yield farm these because if I get the ATH in the next few weeks, those farms will come out looking really good because of the assets I gain on automatic pilot during that time.
- Laying out a dollar cost averaging plan. Although I think I have a great idea of where the market will go, it could go haywire. I never put in all of my powder at the same time. (I lie. I do. It's a habit I am stopping now.) So no matter what, I only put in a percentage of what I have. I'm thinking I need to wait out 2 weeks max before we get the bull back, so that's the time period I aim for.
Prepare for the bear.