Alt Season & GREAT PURGE to start January 2021?
Hi All,
I haven't posted a public idea in a while I hope you find this insightful.
Main TA points;
***
1. BTC.D is currently as resistance.
2. We are about to have first monthly close for TOTAL2 above 38.2% fib level since 2017.
3. Bitcoin has not yet had a consolidation period since its run from 12k-ish.
3. Possible fractal playing out taking us to Trillion dollar ALT market.
4. Massive increase in volume during this accumulation period. Frighteningly massive.
***
Talking points;
***
With XRP likely permanently out of the game and a number of other ALT's under the spot light, we may see under the radar ALT's drive this growth should it indeed occur. There has been a prevalent assumption that we will mirror the previous ALT coin run as it was in 2017 seeing the same players dominate with all Crpytos enjoying massive returns. SECs focus on XRP has sent a message to the market, specifically to any organization that may have held an ICO that they are going increase regulatory oversight in the market, and we know 2017 was driven by ICO madness. If anyone had mentioned 3 months ago that XRP is going to die many (but not all) traders would have found the suggestion ludicrous. The fact we are here now has shaken the foundations of the market.
Both in 2014 and 2017 the top 20 list of Crypto's changed and we are likely going to see this occur once again.
Retail alone will not be able to push this to a trillion dollar market, and it is highly likely that big players have already accumulated the "winners" over the last 3 years and will drive this growth. These will be organizations with proven technology with real world use cases. They will also be Cryptos that are able to provide real ROI to investors and not simply selling dreams and great stories.
In my opinion, the Crypto world is about to experience "The Great Purge" and only the fit will survive.
True decentralized coins should be the focus. Cryptocurrencies primary technological advantage is facilitating trustworthy decentralized systems. Tokeneconomics without decentralization is no different than going to the arcade and using their tokens. Without decentralization, there is no market advantage and can be easily replicated by competitors.
Im not going to shill any particular cryptos but I will mention some immediate sectors to keep an eye on;
Decentralized Finance;
We have obviously seen decentralized finance go nuts in 2020. I don't think the trend will cease, however I wouldn't say Defi is immune from regulatory scrutiny. Governments have started to push for exchanges to verify and report on user activity. What this means is yet to be realised, but should be factored into trading decisions.
Decentralized Infrastructure;
This fits well with the immediate technological requirements of the modern world and I believe has some significance upside. There would also unlikely be the same regulatory scrutiny as their may end up being for the financial sector.
***
Estimates;
A conservative estimate would be we reach a 1.1 trillion dollar market in 2021.
Hopium estimates would 14 trillion.
Good luck everyone.
***
Any trading advice provided has been prepared without taking into account your objectives, financial situation or needs. Before acting on the information provided you should consider the appropriateness of the information, having regard to your objectives, financial situation and needs. You should seek professional personal financial advice before making any financial or investment decisions.
All investment and trade decisions, no matter how well investigated, involve risk.
***
I haven't posted a public idea in a while I hope you find this insightful.
Main TA points;
***
1. BTC.D is currently as resistance.
2. We are about to have first monthly close for TOTAL2 above 38.2% fib level since 2017.
3. Bitcoin has not yet had a consolidation period since its run from 12k-ish.
3. Possible fractal playing out taking us to Trillion dollar ALT market.
4. Massive increase in volume during this accumulation period. Frighteningly massive.
***
Talking points;
***
With XRP likely permanently out of the game and a number of other ALT's under the spot light, we may see under the radar ALT's drive this growth should it indeed occur. There has been a prevalent assumption that we will mirror the previous ALT coin run as it was in 2017 seeing the same players dominate with all Crpytos enjoying massive returns. SECs focus on XRP has sent a message to the market, specifically to any organization that may have held an ICO that they are going increase regulatory oversight in the market, and we know 2017 was driven by ICO madness. If anyone had mentioned 3 months ago that XRP is going to die many (but not all) traders would have found the suggestion ludicrous. The fact we are here now has shaken the foundations of the market.
Both in 2014 and 2017 the top 20 list of Crypto's changed and we are likely going to see this occur once again.
Retail alone will not be able to push this to a trillion dollar market, and it is highly likely that big players have already accumulated the "winners" over the last 3 years and will drive this growth. These will be organizations with proven technology with real world use cases. They will also be Cryptos that are able to provide real ROI to investors and not simply selling dreams and great stories.
In my opinion, the Crypto world is about to experience "The Great Purge" and only the fit will survive.
True decentralized coins should be the focus. Cryptocurrencies primary technological advantage is facilitating trustworthy decentralized systems. Tokeneconomics without decentralization is no different than going to the arcade and using their tokens. Without decentralization, there is no market advantage and can be easily replicated by competitors.
Im not going to shill any particular cryptos but I will mention some immediate sectors to keep an eye on;
Decentralized Finance;
We have obviously seen decentralized finance go nuts in 2020. I don't think the trend will cease, however I wouldn't say Defi is immune from regulatory scrutiny. Governments have started to push for exchanges to verify and report on user activity. What this means is yet to be realised, but should be factored into trading decisions.
Decentralized Infrastructure;
This fits well with the immediate technological requirements of the modern world and I believe has some significance upside. There would also unlikely be the same regulatory scrutiny as their may end up being for the financial sector.
***
Estimates;
A conservative estimate would be we reach a 1.1 trillion dollar market in 2021.
Hopium estimates would 14 trillion.
Good luck everyone.
***
Any trading advice provided has been prepared without taking into account your objectives, financial situation or needs. Before acting on the information provided you should consider the appropriateness of the information, having regard to your objectives, financial situation and needs. You should seek professional personal financial advice before making any financial or investment decisions.
All investment and trade decisions, no matter how well investigated, involve risk.
***
