Reminder! Crypto Bear markets are the best for finding opportunities!
A bear market is always divided in 3 stages
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.