BTC Is Setting The Stage
September has proven to be the turnaround point I predicted many months ago. The prediction was made despite September being a historically bad month for Bitcoin and the broader Cryptocurrency market. However, various factors including technical analysis, alternative historical and cyclical behavior, and macroeconomics provided a fair amount of confluence for this outcome.
Many tend to focus on isolated indicators and as a result, can never provide any level of confluence for their predictions. Strong confluence incorporates as many viewpoints, indicators, and other factors as possible. Confluence operates on the law of averages. The stronger the confluence, the greater the odds of your idea or prediction. Simple extrapolation provides a singular outlook.
Expanding our outlook will help establish a more accurate view of the market. Altcoins are now beginning to respond. BTC is trading above $65K, which is a good sign, especially as we are well into the weekend. The next few months promise to be an exciting time for altcoins. It’s time for altcoins to begin resurfacing. Many smaller projects have been hit hard over the past several months and now’s the time to act.
Utilizing The Tide
The great thing about Altcoin Season is that a high tide usually causes all boats to rise, some more than others. However, the entire altcoin market tends to respond. As mentioned, the reaction is relative to each project and investment sentiment. What investors now need to do is establish the overall health and future outlook of their altcoin investments. It’s time to exit doomed projects.
Yes, even projects that are likely on the verge of extinction are likely to rally in the upcoming Altcoin Season. This is an opportunity for focused investors to utilize rallying prices on increased volume as exit liquidity. If a project has fallen, regarding your expectations and qualifying criteria, it’s time to let them go. This is a great opportunity for capital rotation.
An exit with profit in hand is the ideal outcome. The next move is to identify altcoins that “qualify” for future investment. These are typically well-established altcoins trading at a discount or up-and-coming altcoins with potential. The latter are usually found in the micro-cap market. These are typically altcoins below $50 million in market cap. It’s up to you to use this opportunity wisely.
It can be rather difficult as many altcoins only begin making serious moves in the final stage of the bull market. This is Chapter 3 and as I have alluded to on several occasions, we are now entering Chapter 2. In other words, it’s time to ensure you are well-positioned for Altcoin Season. Projects that have suffered setbacks and are unlikely to perform should be replaced. This is where investors have to be strict regarding emotional attachment.
Suppose you are unable to conquer your attachment to a particular underperformer. In that case, the next best move is to sell 50% of your holdings and reallocate that capital to a project with a favorable outcome. Investing is a numbers game, leave your emotions at the door. They won’t help you here, if anything they will be detrimental to your future success. It’s time for disciplined decisions.
Two of the best exchanges for picking up altcoins and micro-caps are MEXC and Gate.io. There are thousands of altcoins available to account holders. For more well-established altcoins, investors can use Binance. Conduct your research before utilizing any of these exchanges. I use these exchanges and find them to be favorable.
Final Thoughts
Altcoins will begin making moves. Spend time studying their performance relative to the altcoin benchmark and leading performers. In this way, you will be able to isolate those that are not responding favorably. As mentioned, it’s a tricky decision. Some altcoins will only make meaningful moves in time. However, there will be those that are unresponsive, regarding acceptable price action. You know what to do… see you next time!
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.