After BTC Surpasses $90,000, How Should You Plan Your Investments for the Second Half of the Bull Run?
To succeed, you need to have a perfect exit strategy.
Original Author: Duo Nine⚡YCC
Original Translation: Deep Tide TechFlow
The moment you've been waiting for has finally arrived.
Your hard work is about to pay off handsomely.
In this issue of the newsletter, everything you have learned will come together into a complete cycle in the next few months.
This period is crucial for your current and future success. It is a key moment for you to showcase your talents and apply what you have learned. Congratulations on reaching this stage.
Now, let's get to the point. A brief summary will follow at the end.
We have just entered the final stage of a four-year cycle. This is the most exciting and challenging moment. The market is highly volatile, with prices fluctuating dramatically, potentially seeing double-digit swings overnight and setting new records constantly.
What is your exit strategy? To succeed, you need an exit plan. This will be discussed in detail shortly.
Just this week, Bitcoin reached a new high of $90,000. This not only set a new price record but also marked the largest nominal gain in a single day during a 24-hour period. Bitcoin surged over $8,300 in a day. Please refer to the table below.
Soon, daily fluctuations of $10,000 will become the norm. Even writing this down feels a bit crazy, but there is an 83% chance of it happening. No wonder in my previous alpha post, I advised not overcomplicating things, just buying a coin.
That coin is Bitcoin.
At the time, the price was $70,000. Since then, Bitcoin has risen by nearly 30%! Many people are looking for investment opportunities in altcoins, while the biggest opportunity is right in front of them every day.
Bitcoin has the best risk/reward ratio in cryptocurrency. When you consider risk and volatility, no other investment compares to its returns. Remember this when looking for those higher-risk, high-reward emerging coins.
However, altcoins are also experiencing rapid growth. For example, since early November, DOGE has almost tripled in price. I have been recommending it for several months now; back then it was around 10 cents, and now it's around 40 cents. This is a phase in the cycle where everyone can easily make money.
This is the time when everyone can easily make money.
However, this situation will not last long. This is usually the shortest phase in a cycle, and also the last phase before the end of the cycle. The faster and higher the price rises, the closer we may be to the peak of the cycle. Therefore, if this momentum continues for several weeks, we will soon reach the peak.
Here is the most optimistic scenario:
Bitcoin reaches $300,000 in April 2025. That's just five months away.
Is this possible? I have good news, please keep reading.
If the current momentum reflects the pink portion mentioned above, which was the most aggressive bull market in the previous cycle (October 2020 to April 2021), then Bitcoin may rise another 4x after the breakout point. We've just had a similar breakout in this cycle.
If you look at the predictions, you can see that previous price movements reflected resistance levels at $100,000, $200,000, and $300,000. This seems like a strange coincidence. What will happen we will all know, but there is reason to remain optimistic.
There are rumors that some countries are entering the Bitcoin market out of fear of missing out.
Furthermore, we have confirmed that institutional investors are allocating a portion of their funds to Bitcoin and conveying the message, "You need to get exposure." The launch of Bitcoin ETFs this year is a good thing because now anyone can buy in.
What Should You Do?
If you have been following me for a while, you should already know that this is not actually the time to get market exposure because you are already late. You get exposure in a bear market or when the market is calm (or lifeless). We are now exactly the opposite. Market sentiment is high, and FOMO sentiment is starting to show.
The final stage of this cycle is selling and taking profits. This does not mean you cannot continue to buy and make money. You can, but the risk is now higher.
Bitcoin has entered the price discovery phase.
This means Bitcoin has broken through its previous all-time high, and no one can predict how high it will rise, or where it will peak. The price will fluctuate drastically, full of uncertainty.
The buyer and seller will probe each other when looking for a price top. This is a very risky process because you don't want to be the last one holding the bag when the market suddenly turns. Pay special attention to your leverage usage as market volatility will be very high.
Therefore, your goal is to exit when the market is most active. Based on the chart above, the market may reach its most active state in early 2025. This is your best exit timing. Do not focus too much on a specific price but aim to exit during that period. In the following section, I will share more relevant advice.
1. Sell All Altcoins at Market Peak
One good way to determine when to sell altcoins is to observe the performance of Ethereum and Solana. If they reach new all-time highs, it is a good signal to gradually take profits as altcoins rise.
It is important to note that most altcoins, such as DOGE, have their market cycles and may rise earlier or later due to other factors. In the case of this internet culture cryptocurrency, it is because Elon Musk and former President Trump continue to promote it.
Trump's recent statement was big news for DOGE holders. Considering the exposure it will receive from this newly established government efficiency department (i.e., DOGE), its price could rise to $1.
It is important to sell off most altcoins when Bitcoin reaches its peak. Do not get trapped in the next bear market.
2. Hold on to Bitcoin Unless Necessary
I do not advise selling Bitcoin as its long-term performance is expected to continue to improve, potentially reaching $1 million by 2030 or later. In this scenario, do you want to sell? That's your choice.
If you decide to sell, consider starting above $100,000 and gradually selling in increments of no more than 10% each time. You want to sell gradually as the price rises, preferably near the peak. A similar strategy can be applied to altcoins.
If you hold less than one Bitcoin, focus on accumulating as much as possible or preparing funds to buy more in the next bear market. If you hold more than one, you can consider selling part of it at the peak to have funds for future purchases. In any case, use profits from altcoins to buy Bitcoin in the next bear market.
Anyway, do not risk losing your Bitcoin. It is a critical asset for achieving your financial freedom. Focus on the long-term goal. However, if this money is significant to you, seriously consider the reasons for selling. If used to purchase real estate, it is best that the property appreciates to millions in the future. Remember, Bitcoin is the most resilient asset in the world!
3. Control the Fear of Missing Out (FOMO) to Avoid Loss
A common mistake is that people sell, see the price continue to rise, and rush to buy back in. Doing so is likely to re-enter the market at a high point, resulting in losses.
This is a common trap that many fall into. Therefore, you need to establish a clear and feasible exit plan. After selling, place the profits in a less accessible place, such as a hardware wallet, or invest in gold (like PAXG), and do not touch these funds for at least a year.
When the market experiences panic and enters the so-called 'death mode' (i.e., media reports Bitcoin is dead), you can re-enter the market with profits. At that time, buy as much Bitcoin as possible. I will be there to help at that time, so rest assured.
Share your exit strategy in the comments and leave below your expected target for Bitcoin.
Summary and Advice
We are in the most exciting phase of this crypto cycle, which is about to end;
It is your opportunity to sell and lock in huge profits with the goal of fully exiting altcoins;
The end of the cycle is full of opportunities but also extremely risky;
Have a clear exit plan and execute it without being swayed by the Fear of Missing Out (FOMO);
The window for exiting may last only a few months, so seize it well;
Your ultimate goal should be to accumulate more Bitcoin and think long-term!
Original Article Link
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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