Crypto investor
The Expected Unexpected
For many, Thursday’s crash was an unexpected blow. However, I have been warning investors that bull market crashes are a reality and a rather nasty one at that. If the truth be told, the average Crypto investor is simply a gambler. Why? Well, they practically have zero knowledge of financial markets, technical analysis, and on-chain analysis, never mind the broader Crypto market, as a whole.
These same investors wouldn’t allow an inexperienced builder to build their home, and yet somehow think they are in a position to accurately navigate the Crypto market. Let’s just remember for a moment that an accurate predictive assessment of any financial market is one of the most challenging endeavors to take on. It’s a rather small percentage of participants who can consistently extract value from the market.
This is primarily why I advocate an approach of buying the dip in a bull market, as opposed to trying to time the local tops. Even for the experienced, this can be an extremely challenging task. I address this at length in a recent article entitled, “Data-Driven Proof – Accumulation In A Bull Market Beats Profit-Taking”. However, there comes a time when the market has rallied over a prolonged period, and a correction is imminent.
On Thursday, approximately an hour before the dump kicked in, I published an update on INLEO, stating that I had just made provisions for a market crash. The image below shows where I exited the market. What followed shortly after was a heavy dump, followed by a relief rally, which then proceeded to develop into a bear flag formation.
This, in turn, pointed toward further downside, and so, I published an update warning of further downside. The bear flag played out as expected, and we saw a deeper move to the downside. A strong bounce immediately followed this correction. That’s one thing you can usually count on in this market. Otherwise known as a scam wick. This exit/re-entry strategy enabled me to increase my coin holdings, which ultimately works to increase future profitability.
In this particular instance, there was a significant amount of confluence, and so I was able to exit the market without the risk of missing a move to the upside. Many noobs look at the price instead of the path. It’s like paying attention to the position of a car on a journey, rather than the road. If you are traveling west and then take a detour to the east to refuel, it does not imply that the trajectory of the journey has now changed.
To view the market objectively and accurately does however require knowledge, and without it, any attempt is simply a fool’s errand… or a gamble. However, we all start somewhere, right? It’s just that some choose to never develop or grow. Bitcoin cycles come and go, and yet their level of knowledge and understanding remains unchanged. This right here is why many investors will once again, experience loss in a bull market.
That might sound impossible. However, how many investors are still holding their bags from the 2021 bull market? They missed key moments, due to a lack of knowledge, and are now relying on the current bull market to be their salvation. Ironically, for many, the same outcome is waiting in the wings for them. You can only apply what you know… if there has been no growth, expect the same result!
