So Bitcoin has continued to climb, reaching a relative high of $8,350 just a few days ago. People are confused as to what they should do… buy, sell, hold? This article will aim to give you my opinion on what to do based on different circumstances.
Market Cap: $245,000,000,000 (Higher)
BTC Dominance: 57.6% (Lower)
Bitcoin Price: $7,985 (Higher)
Seems that capital is flowing into Alts now.
1) You are ALL IN the market
You’ve likely benefited massively from the rally we’ve seen over the past few weeks, which is great. Now, it’s all about probabilities at this stage. What is the likelihood that the market continues to climb without the standard 40% correction? No-one knows entirely, but from my experience it is highly likely that we will see the price drop over the next few weeks - possibly as low at $6,400.
If you are all in the market, there is little risk averaging out a small amount of your portfolio - between 25-50%. That way, if the market does fall lower, you can accumulate more & if it does not - you will still benefit with the 50-75% you have in the market.
2) You are ALL OUT the market
You may be kicking yourself a little, whether you are yet to dive into Crypto or decided to jump out during this rally (like me). I slowly averaged out during this rally, exiting entirely at 7,300.
Now, the market has continued to rise, and the fear of missing out (FOMO) is making me want to jump back in. I know from experience that the worst time to trade is when your emotions are telling you to do something, so I am taking a more black and white approach.
I averaged out, if the market does not pull back, I will simply average back in again. I am going to watch the market for a few weeks, before doing anything crazy. Then I’ll likely start putting 10% in at a time (or more / less).
Boring, yes, but remember, you don’t have to always go “all in” or “all out”.
3) You are some in and some out
I think this is a great position to be in, and depending on your position, I would just stay put.
4) You are just holding
The one thing to consider if you are just holding is to possibly reallocate your portfolio to protect yourself from downside risk. In other words, have a higher exposure to BTC / USDC than you normally would. Similar to 1). allocation.
I hope this helps.
Please note this is not financial advise, more a guide to help you invest more strategically rather than emotionally.
All the best,