A bit over one week ago when BTC was dancing well above $70,000, there was plenty of excitement in the crypto world, especially on CT, and everyone was bullish. Here on Hive, the one who called the correction and was right about it was @chorock. It is important to surround yourself with genuine traders and investors during bull markets because that's how you make the most out of your investment.
In real life, people were starting to talk about Bitcoin too, even the most "unauthorized ones," folks who don't even know what a blockchain is and how it works. One guy who is clearly out of this space almost bought some DOGE while having coffee at a restaurant. It's funny how the masses are always bullish near the top.
BTC has reached its local top at $74,000 and is now consolidating above $64,000, which is the official top of 2021 to me. Once $74,000 is surpassed, we are going to witness the parabolic run for BTC we've been waiting for, and it is going to be epic. So far, altcoins seem to be more resilient during the dump as Bitcoin is clearly losing dominance.
The ones getting excited near the local top are nowhere to be found now... The guy who wanted to buy DOGE when it was close to $0.2 is no longer interested... Why? It's because the masses are not smart when it comes to making money. They live under the false belief that they should enter markets when things go viral, when in reality they should do the opposite.
I am starting to become cautious. I am not cautious about further downside for BTC and the broad market, but rather cautious about taking profits as we enter the altcoin season. I have personally screwed up two bull markets in a row, and I am not going to do the same with the third one.
Some altcoins such as FET, AGIX, and others have already gone parabolic, but other sleeping giants haven't done that yet, and believe me, they will. At some point, putting money into AGIX or FET won't be as lucrative as doing that with RAY, JUP, or VELO, for example (and many others), which have not seen any significant rallies so far. They will, though, as we enter the "everything season."
It is now time to become fearful, and by fearful, I mean being prepared to take profits and exit the market. It is not an easy task, though, as greed will take over the market. Hence DCA makes so much sense. Being level-headed and not indulging in too much leverage trading can make life-changing differences for one's portfolio and personal finances.
By the end of the bull market, some will call us lucky, but in reality, that is not the case. No one is lucky for having the guts to buy the dip, the patience to HODL, and the strength to secure profits all the way up. Doing that has nothing to do with luck. It's pure resilience.
Many fresh investors will once again get slaughtered as they will arrive late to the party and enter positions that they believe will make 10X-50X from where they entered, but in reality, these coins are already 50X up, which puts them relatively close to their top.
There will be coins doing 100X, 200X, and probably even 1000X (although I doubt the market will allow that at this point), but it is hard to nail those and even harder to do so by entering the market when everyone else does. My take is that this bull market will probably be over this time next year, and it will once again take many by surprise.
Lambs will get butchered, but some of us will make it really good this cycle. I strongly believe that.
Thanks for your attention,
Adrian