URGENT! This MISTAKE Keeps Destroying Your Crypto Portfolio.
Crypto Banter
Bitcoin and Crypto Market Analysis
Current Market Situation
- Bitcoin is trading at $104,000 with a pullback after attempting to break out of resistance levels.
- The crypto market is experiencing a pullback, with altcoins being heavily affected.
- Liquidation levels are low, suggesting the market is undecided on its next direction.
Market Cycles and Correlation
- The last 250 days have shown a 90% correlation with the 2015-2017 Bitcoin cycle, implying a potential rapid price increase to $137,000.
- Historical cycles indicate that significant altcoin outperformance typically occurs in the final six months of the cycle.
ETHBTC Analysis
- The ETHBTC ratio found its bottom in December and rapidly marked up into January in previous cycles.
- Current analysis suggests waiting for confirmation of a breakout or a lower level with a good high-low structure before investing in altcoins.
Risk Management
- A significant mistake investors make is not managing risk properly, leading to substantial losses.
- Calculating position size to limit losses to 15-20% is crucial in crypto trading.
Outlook
- Despite current choppy market conditions, there's potential for a breakout, especially if the USD dominance continues to decrease.
- Managing risk and waiting for confirmations are key strategies for navigating the current market.
Specific Coins
- Solana (SOL): Currently in a bullish pennant formation. A breakout could lead to significant gains, but it requires confirmation.
- Goku: Showing strength and potentially on the verge of a rapid expansion.
Educational Content
- Wales School: Offers a comprehensive course on trading, covering risk management, support and resistance, candlesticks, and more.
- Wellroom Discord: Provides updates and analysis on various coins and market conditions.