Just don't be in a rush, You will have plenty of time to accumulate.
Better if you don't use leverage but if you want to, make sure it's not too high.
CRYPTO MECHANIC
Ā·
--
Last month I made a post saying that V-shaped recoveries are very rare in the market. Whenever a market or an asset comes out of a proper bear market, it usually spends some time in a range.
You can call it building a base, accumulation, consolidation, whatever you want.
Bitcoin had almost a 10-month bear market. Now BTC has come out of that bear market and shifted its structure. And you might remember I said that a structure shift does NOT mean price is just going to take off from there.
A structure shift simply means the trend has changed. And this is usually the phase where people start getting frustrated.
āWhy is BTC not going up?ā
But look at what BTC has already done BTC went from around $58K to almost $87Kā$88K. Thatās already roughly a 50% move.
So if you are buying now expecting BTC to just continue straight up from here, just understand that you are late.
BTC is probably going to spend some time around these levels. Maybe slightly lower, maybe slightly higher. It could take a few weeks.
And this is where people start making mistakes. They take a position, get bored, exit. Take another position, get frustrated, exit again.
Some will eventually sell everything because āBTC is not doing anything.ā
But this is a normal phase.
It has happened with BTC before and it can happen again. Just because BTC has shifted its structure doesnāt mean this phase disappears.
I don't expect a V-shaped recovery straight into all-time highs. It can still happen.
But BTC has just come out of a proper bear market. Thatās why I expect BTC to spend some time here.
It will tease you. It will test your patience.
And if you are not in the market, this is the time to slowly DCA into different price zones and prepare yourself for the next few months.
Not the next few days.
Because the shorter your timeframe is, and the more you expect from the market in a short period of time, the harder it becomes to make money.
I don't think the market is going anywhere anytime soon.
This is the phase where your patience will be tested.
Now is the time you check your favorite alts. Where they are and how much is the discount.
CRYPTO MECHANIC
Ā·
--
20ā30% pullbacks are generally good opportunities to add, as long as the high-timeframe trend remains intact. Screenshot this. Frame it. Stick it somewhere. Put it as your screen wallpaper.
$NEAR Over 10% rejection after taking out all those highs.
CRYPTO MECHANIC
Ā·
--
$NEAR Probably the only coin showing strength against the whole market right now. One thing Iāve noticed over the years: Coins that show strength while the rest of the market is weak usually lose that strength once the overall market starts moving.
I donāt own any, but if I did, Iād probably consider taking some off here as price have taken out all the highs.
$ENA & $ZEC key high timeframe zones. The zones are a little wide, but these are high timeframe zones, so thatās expected. You can either wait for lower timeframe strength/structure shift to get in, or slowly DCA into the zones.
Personally, i do slow DCA when the over all trend is bullish.
Last month I made a post saying that V-shaped recoveries are very rare in the market. Whenever a market or an asset comes out of a proper bear market, it usually spends some time in a range.
You can call it building a base, accumulation, consolidation, whatever you want.
Bitcoin had almost a 10-month bear market. Now BTC has come out of that bear market and shifted its structure. And you might remember I said that a structure shift does NOT mean price is just going to take off from there.
A structure shift simply means the trend has changed. And this is usually the phase where people start getting frustrated.
āWhy is BTC not going up?ā
But look at what BTC has already done BTC went from around $58K to almost $87Kā$88K. Thatās already roughly a 50% move.
So if you are buying now expecting BTC to just continue straight up from here, just understand that you are late.
BTC is probably going to spend some time around these levels. Maybe slightly lower, maybe slightly higher. It could take a few weeks.
And this is where people start making mistakes. They take a position, get bored, exit. Take another position, get frustrated, exit again.
Some will eventually sell everything because āBTC is not doing anything.ā
But this is a normal phase.
It has happened with BTC before and it can happen again. Just because BTC has shifted its structure doesnāt mean this phase disappears.
I don't expect a V-shaped recovery straight into all-time highs. It can still happen.
But BTC has just come out of a proper bear market. Thatās why I expect BTC to spend some time here.
It will tease you. It will test your patience.
And if you are not in the market, this is the time to slowly DCA into different price zones and prepare yourself for the next few months.
Not the next few days.
Because the shorter your timeframe is, and the more you expect from the market in a short period of time, the harder it becomes to make money.
I don't think the market is going anywhere anytime soon.
This is the phase where your patience will be tested.
$NEAR Probably the only coin showing strength against the whole market right now. One thing Iāve noticed over the years: Coins that show strength while the rest of the market is weak usually lose that strength once the overall market starts moving.
I donāt own any, but if I did, Iād probably consider taking some off here as price have taken out all the highs.
The most important thing when it comes to making money in altcoins is which project you're choosing and what its financials actually look like. By financials, I mean simple things: How much money is the project making?What products or protocols does it have?Where is the money coming from?And most importantly, is the project actually generating revenue? Think About the Stock Market If you're investing in a company, one of the first things you look at is its financials. How much revenue is it generating? How much profit? How many assets does it have? What does its quarterly, monthly and yearly revenue look like? Then you look at the products the company offers and whether those products are actually benefiting the business. The exact same logic applies to crypto. Most People Just Gamble Unfortunately, a lot of people in crypto just gamble. They see someone talking about an altcoin on social media, buy it, and don't even know what the project actually does. They don't know where the money comes from. They don't know how much revenue it generates. They don't know if the project is making any money at all. Let me share some of the altcoins recent revenue figures, and you'd be surprised how many popular projects are barely making anything. Some are making less than $100 in revenue. Movement - $0.07 revenue in 24h Polygon - $79 sophon - $0 Manta - (-$22) Lisk - $2 Hemi - $12 Scroll - (-$11) Metis - $31 Soneium - $6 Zora - (-$2.85) Lumia - $0 And I'm not even talking about random shitcoins. I'm talking about projects people actually know, projects that have raised millions of dollars and have a lot of attention around them. But when you look under the hood, the revenue is basically nothing. What to Check Before Holding Long Term? So if your plan is to hold an altcoin for the long term, one of the first things you should do is look at the project's financials. What products does it have?Are those products actually generating revenue?Is some of that revenue being used to benefit the token? If the project is making money and has a strong revenue stream, that's obviously a good sign. But if the project itself isn't making anything, then ask yourself: what exactly is going to make the token valuable in the long run? Look Under the Hood You don't need to blindly buy something just because everyone is talking about it. Look under the hood. If the project isn't making money, it's very unlikely that it's going to make money for you either. Keep that in mind whenever you're investing in altcoins. Good Luck..!
Price holding $85k zone is clearly giving us an idea how important support it is.
CRYPTO MECHANIC
Ā·
--
$BTC
Not a bad weekly close. Price is holding that last swing high.
As long as price continues to hold above it, I think it looks fine.
Itās not a major zone structurally. Itās important mainly because when you see a breakout of an important high, you want to see the market hold that level and provide continuation.
So far, the market is holding it.
Lower timeframe:
$85k is the important lower timeframe zone. If bulls manage to hold above it, we can expect continuation higher.
Even better if price doesnāt revisit that zone again.