As I mentioned in yesterday's update, the biggest concern was the possibility of a break of the trend line on $BTC - and here we are. It has happened, exactly as predicted, and "brutal" is the only description that can be used.
Now that the $98K support has been lost, the short-term upside move was just a bearish test of $98K before the price headed lower. All signs point to $92K as the next target. After that, $85K comes into the picture, which is a more important level due to its untapped nature. While it is unlikely to be reached, the market is unpredictable, so we can’t rule anything out.
For now, I would continue to avoid opening new positions. As I highlighted last time, $BTC.D (Bitcoin Dominance) still has room to move - far from over. The next major resistance level is at 60%, and if $BTC it drops precipitously, expect another 20% drop in altcoins with $BTC.D well above 60%.
While this may sound bleak, it is actually an opportunity for those who are patient enough to wait. Once $BTC.D rises, you will have a once-in-a-lifetime opportunity to accumulate quality altcoins before the next rally. Remember, we remain bullish on the long-term as long as BTC remains above the daily low of $90K.
I’ve gotten a lot of flak over the past couple of weeks for urging profit taking, but here we are – 40% down in most assets. Let me reiterate: a big rally in $BTC.D (possibly as much as 70%) has historically been a catalyst for altcoins to rally. But surviving this decline won’t be easy – it will be ugly, and I won’t sugarcoat it. My goal is to prepare you, not comfort you. I told you to beware of all those crypto gurus urging you to buy now… they’re clueless or dishonest. Wait for a bottom with clear signs of a reversal, and only then buy “strong coins.”
Stay disciplined, trade safely. Opportunities are coming, but only for those who are ready to seize them.
