I have been writing slightly negatively lately, so today I will present a more positive view for your reference.
Regarding short-term prospects, BTC has a fairly strong support level at 91k-92k, and currently, the price is trending to retest this demand area.
A positive scenario that could occur is that BTC will stabilize, and altcoins will have a breathing moment, recovering stronger when forming a short-term double bottom structure on a smaller time frame.
However, since the major structure of the decline has not been broken, there is a high possibility that after a bounce, altcoins will drop together with BTC. Therefore, if there is a recovery on the market, you should cash out 50% of your holding altcoins to avoid deeper price drops. This is also to have capital to calculate the next entry points.
In a worse scenario, if BTC continues to decline, then only God can save your account. At that point, advising to cut losses or hold will be equally ineffective.
The most unbelievable scenario that could happen is that altcoins will recover from now and start outperforming BTC. But this scenario requires 4 factors:
1. The market liquidity must be sufficient to pump at least 10k coins currently existing on exchanges.
2. The time to accumulate stocks for market makers must be long enough.
3. BTC needs to hold the 90k level firmly.
4. There needs to be significant liquidity from young, inexperienced investors in the market.
If any of you still think that 2024-2025 will be like 2020-2021, then you are mistaken; these two periods have significant differences in investor mindset, market position, and even social issues.
2020-2021 was a period not only of Coin increase, but all types of investment assets available online also rose (gold, stocks).
I wish you insightful thoughts regarding your investment decisions.
