King Wabi The First
King Wabi The First 2 minutes reading from Bitcoin

Crypto Bear Markets: Bear Market Decentralized

Reminder! Crypto Bear markets are the best for finding opportunities!

A bear market is always divided in 3 stages

Stage 1: Market turns bearish, money starts exiting the market. Denial, fear and desperation. Everything bleeds rapidly as liquidity dries up - BTC, ETH , BNB

Stage 1 is not a stage where we want to buy and be long!

The only exception is extremely oversold days with liquidation cascades - these are the only events we want to buy oversold tokens or stocks for the short term to sell the rip during a deadcat bounce/mean reversion .

Stage 2: This is a stage where market goes into boring / crab mode. Volatility and volume is low,while market chops sideways for months.

Altcoins continue bleeding.This is a stage where we want to look to find and think about future accumulation for hidden gems at cheap prices.

Stage 3: Bottoming stage - High timeframe trend is about to reverse. We want to be buying with confirmation of high timeframe trend reversal.

Currently I believe we are in the process of stage 2, for an extended period of chop . I believe time wise , the bottom is close .

Most people are better off buying the breakout of the market where we know the trend has reversed.

Better to show up to a party later on , where we know what music is playing vs showing up at the wrong one before the music has even started !!

This post is based on this twitter thread.

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