Hello fellow traders,
This chart is more a reality / sanity check then it actually predicts timing or levels.
It is all about making a plan to suit what might be on it's way.
The reason i throw this at you is to make you check your plan and see what it does when things don't go as planned.
All i see are videos on 70k / 100k even 200k new cycle tops and stating how much your money will be worth when you jump in now.
But what if, and yes that is a big what if, but what if the recession will make us drop back an entire cycle.
- That means the bottom is somewhere between 3k and 1.5k.
- That also means the next top might get stuck at good old 20k level.
Now look at your investment and where it would be if that would turn into reallity.
What i am saying is be ready for whatever the market throws at us.
For me that means i spent only 10% of my money on buying BTC around 20k.
If we keep dropping i can still spend 90% of my money, if we break to the upside i can always decide to jump in with the 90%.
Long story short, staying liquid gives you options to react, going all in to soon limits your options to watching your portfolio shrink and praying a new ATH will be made.
Stay safe and don't underestimate the macro economic powers that are in play this cycle.
There is no historical data on crypto during a recession, so for me all historical indicators are invalidated.
As always this is no financial advice, if you want to jump in line with the herd just be my guest.
This chart is more a reality / sanity check then it actually predicts timing or levels.
It is all about making a plan to suit what might be on it's way.
The reason i throw this at you is to make you check your plan and see what it does when things don't go as planned.
All i see are videos on 70k / 100k even 200k new cycle tops and stating how much your money will be worth when you jump in now.
But what if, and yes that is a big what if, but what if the recession will make us drop back an entire cycle.
- That means the bottom is somewhere between 3k and 1.5k.
- That also means the next top might get stuck at good old 20k level.
Now look at your investment and where it would be if that would turn into reallity.
What i am saying is be ready for whatever the market throws at us.
For me that means i spent only 10% of my money on buying BTC around 20k.
If we keep dropping i can still spend 90% of my money, if we break to the upside i can always decide to jump in with the 90%.
Long story short, staying liquid gives you options to react, going all in to soon limits your options to watching your portfolio shrink and praying a new ATH will be made.
Stay safe and don't underestimate the macro economic powers that are in play this cycle.
There is no historical data on crypto during a recession, so for me all historical indicators are invalidated.
As always this is no financial advice, if you want to jump in line with the herd just be my guest.