In the last bull market, during the climb between 10000-65000, there were a total of 5 significant daily pullbacks. They are summarized as follows:
1st time, 3-day pullback, amplitude 16.42%;
2nd time, 20-day pullback, amplitude 29.68%;
3rd time, 7-day pullback, amplitude 26.15%;
4th time, 12-day pullback, amplitude 18.12%;
5th time, 9-day pullback, amplitude 26.84%.
The average pullback time is 10.2 days, with an average pullback amplitude of 23.45%. The total duration of the five pullbacks was 105 days, which is the first half of the bull market in 2021. This means that on average, there is an equal amount of time spent rising and falling. There are a total of 5 major opportunities in the first half of the bull market, averaging a fivefold leverage explosion for the market to advance.
If we consider 73700-66800 as the first pullback, we may soon enter the second round of pullbacks. If calculated according to the average pullback amplitude, the corresponding pullback points are 99588-76227. It is unimaginable what altcoins would experience if BTC pulls back to such an extent, but in the first half of a bull market, each pullback is an opportunity to increase positions.
The market is changing, and corresponding prices are changing, but human nature remains unchanged. The current FOMO sentiment and influx of off-market hot money provide a good harvesting foundation for the big players.
The operational strategy for the next six months:
1. First, allocate funds into three positions: one solely for BTC, one for mainstream altcoins, and another as a reserve to increase positions when there is a pullback of more than 20%;
2. Reduce leverage; reduce BTC position leverage to 15 times and altcoin leverage to 10 times.
3. Diversify forces; when making positions in altcoins, do not exceed one-tenth of the total funds for each opening. Multiple altcoin positions can be opened simultaneously, but each should not occupy more than 10% of the funds to avoid total liquidation.
4. Withdraw more; after the total funds double, withdraw about twenty percent and convert to RMB.
5. Low expectations. After analysis, the risks faced in the next six months are quite significant. Although the principal has increased sevenfold in the past month, it is advisable to lower expectations before the peak in May next year and aim for a threefold increase.
The above text merely records objective facts, serving as a model for my thoughts over the next six months. I hope to strictly execute and achieve the goal of tripling.