The Crypto Market Is Pulling Back. Here’s What to Do Next.
If you’ve been invested in the crypto market for the last year, congrats. You’re probably feeling very good right now.
That’s because, since early 2023, the crypto market has been slowly trending higher in price after hitting rock bottom in 2022.
If you look at the chart of the total crypto market capitalization below, you can see this increase.
In the fourth quarter (Q4) of 2023, crypto prices started to go vertical, and the whole market grew. Then prices experienced another massive burst in early 2024.
The craziest part? Although the rally slowed down at times, there really weren’t any major corrections along the way.
Until now.
The market appears to be undergoing its first prolonged correction in over a year. We’re now entering week four of this correction. Luckily, we haven’t seen the major 30%-plus reversals that experienced crypto investors have become accustomed to.
However, new investors are getting their first taste of crypto’s famous volatility. People are coming to grips with the fact that crypto prices won’t head only upward for the entire bull market.
And it’s safe to say that some people are getting a little annoyed.
That’s OK because we are going to take advantage of those people’s worries.
A Great Opportunity to Buy the Dip
This correction is the best investment opportunity that we’ve had in months.
Is there concern for any further downside?
Sure, the market could potentially dip down to the next support level. For Bitcoin (BTC), that would translate to a move down to $62,000. That’s only about an 8% drop from current levels.
Conversely, BTC could pick up some momentum and break out of the current range at any point. The pre-halving dip is bound to end at some point, and the biggest gains of the bull market always occur immediately afterward.
The best action of the bull market is right in front of us, and we finally have a good entry point. This is what I like to call a “high-conviction” trade.
The downside is pretty limited, and the upside looks extremely good. Of course, Bitcoin isn’t the only asset that is set to benefit.
These types of market corrections are typically followed by a quick rally in blue-chip cryptocurrencies first. After that, investors tend to seek out riskier investments such as memecoins.
This means that there is currently an opportunity to make good money by betting on a reversion to the mean for Bitcoin and other blue-chip cryptos. These are some of the safest investments you can make in the crypto market, and right now they have attractive upside.
If you ask me, your next move is pretty obvious. Don’t miss out on one of the best trades of this cycle because you were afraid to see a little red on your screen.
Have fun, and stay tuned for more.