A Surprise Visit From The Bears
The anticipation of a pre-halving correction has now become a reality. Last week, I signaled the warning bells regarding a market correction. As fate would have it, this warning was issued mere minutes before the collapse. Responsive investors had approximately an hour to act. I had made my decision a few hours earlier but was only able to post my intentions later that day.
We have since retraced as deep as $38.4K, and are now in the heart of a relief rally. Whether or not this rally can extend beyond a relief rally remains to be seen. This can only be deduced as the price action continues to mature… and begins to paint a clearer picture of its intentions. It’s also only a relief rally on the LTF. As I mentioned in a previous article, a relief rally on the HTF is a likely scenario.
This is mostly due to it creating the possibility of a perfect trap. Even though I am bullish, I also understand what tends to play out in the final months leading up to the halving. We would be fortunate to get away with $38.4K. I am not suggesting that we won’t. However, the possibility we eventually edge lower than $38K remains on the table. Either way, this is the final chance to scoop up cheap alts.
I know famous influencers love to push this type of narrative. However, it is an accurate viewpoint at certain points in the journey. Even a broken clock is correct twice a day… and this is one of those moments. It becomes hazardous to try and secure lower entries during this period. Prices can skyrocket out of nowhere and without warning.
I do however think there will be some decent dips before the halving. Nothing in any market is a given, which is why taking advantage of these opportunities is imperative, in my opinion. Historically, the halving tends to have a delayed effect on the price action. In other words, the price tends to spike a couple of months after the halving.
The market will always provide viable opportunities. However, as we move deeper into this halving cycle, we can expect to see these opportunities offering diminishing returns. The earlier you can get in, the better! It’s quite likely that Bitcoin will edge significantly higher before providing another deep dip.
There is also the chance that Bitcoin will move a lot higher before providing another double-digit correction, which is why holding out for lower levels becomes a lot more tricky as time matures. However, it’s advisable to always have some dry powder on the side. There will always be surprise shocks throughout every cycle.
If we consider for a moment that the Bitcoin halving is less than 3 months away, it becomes rather apparent that in approximately 6 months, we can expect to see Crypto valuations considerably higher than they are now. The journey to that point could be volatile, it could also be more of a steady rise.
Final Thoughts
I am expecting some volatility, but that doesn’t stop me from taking advantage of what is currently on offer. The recent dip was a great opportunity, and one I didn’t waste. I said the same thing in 2019 and early 2020. Dips are for buying. Even deep corrections are short-lived during this phase of the cycle.
These are my views, and should not be considered investment advice. However, these cycles tend to be fairly predictable. That being said, there are never any guarantees when it comes to investing and financial markets. See you next time, and enjoy the ride! There’s an exciting journey ahead!
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.
Posted Using InLeo Alpha
