In this post I'll give you a very detailed answer to this important question...๐
Read this till the end!๐
This is how mania phase looked like in 2021 at the market top:
* Coinbase was Nr. 1 in the app store
* It was normal to see Altcoins 10x in a month
* Nobody saw ANY risks anymore
* People who you haven't talked to in years suddenly started asking you about crypto (if these kinds of people aka "dumb money" are interested in crypto all of a sudden, ask yourself: who is left to buy?)
* Cult-like crypto communities
* If you were bearish you'd be laughed at
* Dog coins were pumping like crazy (not only $DOGE or $SHIBA) but also the craziest & funniest dog coin names you have ever heard!
* Unrealistic price targets were being thrown around (1 million per $BTC etc)
* Songs were being made about crypto
* Celebrities getting involved in crypto
* In the news you'd only see the MOST BULLISH NEWS (for example last market top it was the Coinbase IPO & El Salvador making legal tender)
* People flexing with their cars & watches online after making millions in crypto
"History doesn't repeat itself, but it often rhymesโ.
This statement is perfectly true in this case!
We'll most likely see similar warning signs to the ones I just presented to you at the next major market cycle top.
You might ask yourself right now: "But aren't we seeing a few of these warning signs already"?
Well, partially yes.
However, Altcoins are clearly NOT in the euphoria stage yet!
Keep in mind, TOTAL 2 (Crypto Total Market Cap Excluding $BTC) hasn't even made new all time highs this cycle.
The best is still yet to come for Altcoins!
I'm expecting a top for this index somewhere between $2-7 Trillion.
Along with technical indicators & price action, which I use to my advantage, that's when you get out of your altcoins!
* Lower highs & lower lows
* Trendlines/patterns broken to the downside
* RSI/MACD bearish divergences
* Big candle wicks to the upside
* Bearish engulfing candles
* Decreasing volume with rising price
The more bearish technical indicators like this you'll see in confluence on the weekly or daily timeframe, the higher the likelihood that you'll need to take profits!
Do not ignore these signs & think this time is different!
Do not get caught up in the hype.
If I see these kinds of signs I will ABSOLUTELY be taking profits!
Another interesting indicator I'll be paying close attention to is the Pi Cycle Top indicator.
This indicator has predicted EVERY $BTC market cycle top in the past with crazy accuracy.
Profit taking is one of the most important skills you need to master in crypto.
I hope this guide has helped you understand which things in particular I'm looking out for in the mania phase.
Cheers!๐ฅ
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#Crypto #Altcoins #BullRun #InvestingTips #MarketAnalysis
