Everything about bitcoin and cryptocurrency made me suspicious. The market is going to zero. Did you know that bitcoin and most altcoins actually drop 80% to 90% every four years? This is actually quite normal, and many times they go on to make new all-time highs in the future. But when are they going to go back up? No one can tell you with 100% certainty. Nothing is ever guaranteed in crypto, but I’m going to be sharing with you some really important data that could give us some clues as to when these cryptocurrencies could go back towards the upside, but please note I’m not a financial advisor and you should never risk more than you can ever afford to lose.
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Bitcoin and the entire cryptocurrency market are deep in the red. I know that right now, Bitcoin is trading at $31,400. Making new lows for 2022 is never what we want to see in cryptocurrency. However, be greedy when others are fearful and fearful when others are greedy. This is a classic quote, but it is really, really true.
Do I believe that the cryptocurrency markets could go lower? Absolutely, that’s always on the table. So here we are with Bitcoin. Why am I sharing Bitcoin? Because Bitcoin basically controls the rest of the market, I want to share it with you two. Terra Luna has lost its peg in its latest stablecoin. There’s a lot going on with this, and you can see that it is sitting at 97 cents. If I also go ahead and look at Terra itself, this is down to $53.
There’s a lot going on with this ecosystem, but it’s not the only stable coin. USDC is in the green today, sitting at its nice dollar, but you can see that Binance USD is also above its peg and many of the other stable coins are above their pegs.
The Wall Street Cheat Sheet
But what I want to share with you right now is the most important thing. You’re not a 100% safe bet, okay, and especially with a lot of these stable coins, especially the algorithmic ones. As I’m sharing with you here, nothing is ever a guarantee, but now it has moved right back up. Sometimes you do even get a little bit of volatility with these stable coins, but what I want to share with you right now is the most important thing: The Wall Street cheat sheet, the psychology of a market cycle.
You can see at the top we have euphoria, everyone thinks they’re a genius, everyone’s making money, happy times, happy times. Then all of a sudden, we promise down here and this is where I truly believe that we are. I think we’re right now in the anger stage of the market. I could be wrong. Okay, but I’m seeing people are starting to panic. We’re starting to see some sort of capitulation. Not a massive one, but we’re starting to see this is kind of where we’re at. We’re in anger. We’re kind of towards the bottom here, but it could ultimately go lower and we could be sitting in this sideways range for quite a while as well.
Fear & Greed Index
I also want to share with you some other key indicators that we are heading towards a bottom. Again, no one knows exactly where the bottom is until it’s in. My point is that right now the Fear and Greed Index is at 11. Be greedy when others are fearful.
Right now, I believe this is a buyer’s market. Does that mean that you should go take your entire life savings and buy crypto right now? No it doesn’t. I’m not here to financially advise you on that. All I am saying is, looking at these indicators right now, we’re in extreme fear. Last month, we were in 30. If we take a look at the crypto fear and greed index over time, we’ve only been to these bottoms a handful of times, all the way back in August of 2019. We’re ahead of five now. I know I laugh at that, but the truth of the matter is it’s never fun to be all the way down here, but the fact that we’re at 11 today is kind of like how much more pain do you think is going to happen here in the short term before you become profitable yet again.
Altcoin Season Index
If we take a look at altcoin season, we’re at 29. Right now, again, we’re not in an altcoin season. We’re worried to the max that bitcoin is making new lows. Everything in your brain is telling you. This is a scam. This is bad. Just get rid of it.
Can’t afford $1,000 emergency
But the bigger concern to me is that right now we are seeing that a survey has found more than half of all Americans cannot afford a $1,000 emergency fund. This is the crisis. Everyone is over-leveraged. They’ve spent way too much money on credit cards and everything else that we simply cannot manage our risk properly, and this is the scary part.
What I really, truly want to share with you is that it’s not about the altcoins. It’s not about us. It’s not about all the red here today. If you’re feeling significant losses today and you’re really concerned about your finances because you over leveraged yourself and crypto, that has nothing to do with the coins, it has more to do with your risk management. That is the key here. You have to be able to manage your risk. So what do I mean by this? Will this ever go back to all of the questions that a lot of you are probably asking yourself? When the market was dipping like crazy, I then had one student say that they put more than 95% of their portfolio into one super high-risk altcoin, and that to me was a massive red flag, and I told them I said, “Look, it’s not the altcoin itself.” It’s how much you risked on that altcoin. All the coins that the person invested in were up more than 400 times their pre-sale price.
Since then, it has gone down significantly, so if you put, let’s say, a thousand dollars into it, you get 950 dollars. That right there is where the issue lies. It’s in risk management. I see way too many people risking way too much on a lot of these highly speculative coins.
Projects holding up strong
I also want to share with you that even right now, a lot of these projects are still holding up rather well. If you type in Qmall, you’ll be able to see the price right now is still holding over a dollar. As the entire market is literally collapsing, QMALL is sitting at only -4% right now.
If we take a look at the chart of QMALL, you can see that you have had literally ever since I started talking about this cryptocurrency back here in February. In fact, I shared about this cryptocurrency before it even hit the market that you could have gotten into this pre-sale for three cents. But even if you couldn’t have gotten into the pre-sale, you could have bought on the open market literally almost at any time and be at either break even or with some really nice profits.
Another coin that I shared with you was Apecoin. The reason why I shared Apecoin with you is because, as you can see now, it’s down to $9. They had their massive run up. Everything was going crazy parabolically here. Okay, going right here and buying a coin at $25 was absolutely crazy to me. I personally didn’t buy any Apecoin. I was looking to buy the land. I’m glad that I actually didn’t mint any of it because that mint was absolutely crazy as well.
What I’m seeing right now is that we are in a massive dip, but even if you had bought this cryptocurrency when I shared it with you when it first came out at $7, you’d still be in the green today even after it being down massively. That’s what I want to share with you is that if you time these things correctly, if you do your research, you should still be in some very nice profits. If you have been paying attention.
It should not have come as a surprise today that bitcoin is hitting all-time lows. In fact, a month ago I sold all of my Bitcoin. Bitcoin was at $42,000. So I’m not here to brag about all the different things but rather teach you where we’re at right now and then what you can do to prepare yourself in the future. People are angry. So let me now ask you this question. Where would you rather be buying cryptocurrencies when things are euphoric and thrilling and everyone’s believing, or would you rather be buying down here when people are angry, maybe even depressed right around this red area? Maybe we haven’t hit this yet. For me personally, I’m going to start looking at buying some of these coins now, not all of my positions, not all of my stable coins, I’m not going to throw everything into one coin or do anything crazy of that nature. What I am going to start doing, though, is looking to invest in some of these cryptocurrency coins that I either missed out on or other ones that I actually want to accumulate and hold for the long term.
Bitcoin & Ethereum chart analysis
What should you do now? What’s going to happen next? When is it going to happen? If you take a look all the way back when Bitcoin was sitting at under a hundred dollars, you can see that the chart has just gone up and to the right exponentially every single year. You can see it went all the way as high as $20,000, came crashing all the way down to $3,000, but then what happened? It made its all-time high at $70,000. You would have more than tripled your money if you had just bought bitcoin and held onto it. The same thing here. If you had bought here at $3,000 and sold all the way up here at $70,000, you would have made more than 35 times your money with Bitcoin, which is absolutely insane, but the time is running out for you to get these massive numbers and that is why we look at all coins.
For example, Ethereum. You can see 74 cents all the way back in 2015. Wouldn’t it be absolutely amazing to buy some Ethereum then? Since then, we went all the way up to over $1,400, then came crashing all the way back down here to $85. Where would you have liked to have bought at a $1400 or $100? This, to me, is where we could potentially be right now, right around the two or three hundred dollar mark.
As you can see from the chart, we are definitely dipping down here. Who knows, maybe we will go back down to a thousand. No one can tell you for sure. My point is that your risk reward is starting to get better when everything is in the red, and especially deep in the red.
[This article is a transcription of a video made by Joe Parys]
Original video: https://youtu.be/W5wgosSUsXY ]