How I plan to make the most out of this crypto bull market
The way I see it, the bull market in crypto started a few weeks after the Bitcoin halving, and although BTC hasn't yet crossed the huge $20,000 psychological, it will do that probably sooner than most of us are expecting. As you might have already acknowledged, it never moons in one shot, so patience is still a highly important requirement.
In my opinion, after reading quite a bit about the halving for BTC and how it affects BTC's price, it is the major catalyst for a crypto bull market, and somehow everything spins around it. Kind of makes sense, if you consider that miners are putting a lot of selling pressure on the price and once at four years they see their rewards cut in half.
What I've also noticed in this regard, is that it takes BTC usually about 500 days to reach the peak after the halving, and considering that this year we had the halving on May 11, it will be expected to peak somewhere in October-November, 2021. Nothing is mathematically nailed though, as we've witnessed when the black swan event in March hit us, so I'll take this time frame as a reference and not a given for the peak.
I like to be prepared and that's why I'm already planning my strategy for 2021. I don't do trading, with just a few occasional exceptions and I don't hold BTC. I only hold alts and I am sure that we will have altseasons this bull market as well.
Hence, considering that the future peaks are to be expected somewhere by the end of 2021 I'm planning on dollar cost averaging, something I wish I would have used for getting into the market as well, and I will start that somewhere in June-July, 2021, depending on the overall market trend. Those two months have proved to be favorable to bull runs and that's when I plan on dumping my first 20% of my portfolio.
My initial investment is almost entirely out of the crypto play thanks to some really good trades from the past so I'm not stressed about that at all. I'm just trying to make the most out of my potential profits. So, 20% to be dumped in June-July, next 20% will probably be dumped in the hands of future plebs probably somewhere in September next year, depending on how the market behaves, and the rest is euphoria money as I see it.
I plan to risk 60% of my portfolio on the future mad times in crypto when grandmas will be talking bitcoin, my neighbors will be asking me how to buy it and trevon james will once again guide future rekt crypto enthusiasts in what to invest their hard earned capital. Will probably use stop losses all the way up and do that cautiously all the way of course, and hopefully make the most out of this bull market.
Nothing is certain in crypto and being prepared, in my opinion, is highly important. I might end up selling some portion too cheap, and I'm fine with that, I might sell some after the actual unknow and unpredictable peak, but it's the meat in between that I'm interested in. What about you, how do you plan on making the most out of this crypto bull market?
Thanks for attention,
Adrian