"We're so back baby"... We are so back...
So, the data regarding CPI in the US just came out and it seems it is 3.6%, 0.2% lower than the previous month. Based on this data, everything started pumping: SPX, Bitcoin, Nasdaq, everything but DXY, which seems like it's going down the toilet. But wait a minute, weren't we supposed to tank even further based on the sentiment of a few days ago?
Well, for whoever did not realize that by now, the markets don't give a damn about sentiment and what the masses think the markets should do. The masses are rarely right about anything, if ever...
Whenever crypto is pumping, all sorts of crypto gurus pop out of nowhere, showing us what's next for the market and how insane the prices will get in the short to medium term. And when their predictions fail, they literally get lost in the dark. But make no mistake, these will be back soon as the 20%+ correction for Bitcoin is about to end.
I believe a two-month-long correction for Bitcoin during a bull market is pretty decent. However, quite a few in the crypto community have turned bearish lately, unfortunately at the wrong time, just when BTC and the stock market were consolidating near their previous ATH levels. What a bad time to get bearish, in my opinion... They will be back soon buying memes and chasing pumps once again, as in every cycle.
Bitcoin is king and will always be; it dictates trends and will always do so. But somehow, the so-called gurus are oftentimes missing that, and they expect altcoins to confirm the bottoms and tops of the market. No altcoin will bottom or top until Bitcoin does, and for this cycle, BTC has shown us that 20%-23% corrections are the norm.
The duration of all these corrections has been something around two to three months. Whoever can't handle a 20%-30% correction during a bull market and two months of sideways price action does not deserve all the rewards the blow-off top will offer to the patient ones. There will be a blow-off top, and there is a date for that: when everyone will see the bull market for what it is 😀.
But what do we do until the blow-off top comes? Well, I have a few ideas, and one of them is: don't switch your bags... I know, there's this new coin that pumps like hell while yours does poorly, there's a tweet from whoever on Twitter saying coin X is going to make millionaires, and so on and so forth.
I can tell you from my own experience that switching between bags and always diversifying will lead to missing out on all the pumps. Sticking to the plan and exiting according to your plan is of utmost importance, if you ask me. You can't catch all the trains, so you better stick with your picks and be determined about that.
Fortune always rewards the brave and the patient ones. The bull market is not over, and we have not yet seen the best for alts for this bull market. Buckle up, have a plan, and stick to it. It's that simple.
Thanks for your attention,
Adrian