Are We in Distribution Phase?
The market started to recover fast since the mid October as we started to buy a couple of narratives such as Bitcoin Spot ETFs, interest rate cuts, the cease of quantitative tightening and the halving in Bitcoin. Aside from them, the growth of Nvidia boosted the AI hype in NASDAQ and crypto markets.
The uptrend in Bitcoin, starting from breaking strong resistance around $25K and the mythical resistance of $33K, made it more than 2x already. When we consider the rapid growth, the markets started to indicate a " yellow sign " as there might be a slow down in the demand for the assets with the hyped prices.
It is time to think about the possibility that the market is overfed because the strong resistance of $52K has been unbroken though there were spikes on it several times.
Distribution is Likely around $52K - $56K
The party might be over soon if we are in the phase of distribution.
Simply, everyone has enough shares / coins and we all are waiting for new buyers to sell our coins and stay away from the market during a correction that can be seen as Mark Down in the visual below.
It is high time to consider if we are taking the risk of missing out on some more gainz, let's assume that Bitcoin hits $56K; Ethereum tests $3100 and other coins gain value in line with them, or are we going to try to ape into the maximum profit and take the risk.
Depending on my personal experience in crypto, this phase is in the gray zone. It is hard to claim whether it is a distribution that will end up with a massive drop due to the strong and fundamental narratives. While lots of investors expect Bitcoin to be the star of the year, it is a hard decision to make.
Wisdom Suggests Partially Taking Profit
Selling off all your coins never ends up well in crypto. There is always one more leg after you sell them 😝
The current price of Bitcoin does not indicate a clear path that we are heading to.
Below $45K does not look likely, and if it happens, the price gets into the channel again, but $56K will be a strong wall that we may suffer while trying to break above.
If you carry a long term bag, nobody can advise you to take profit while the market is still 2/3 of its previous ATH. When you consider the inflation since that time, the approval of ETFs, and the upcoming halving, the market has a loooong history.
You need to decide whether you can grow your crypto bag by taking profit from these levels and adding more coins when the market drops. I may make it like 20% - 25% depending on the trend in NASDAQ and crypto. However, I would never go for more than 50% in today's conditions.
What do you plan for the current market conditions?
Share your strategy below 👇
Hive On ✌️
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