According to PANews, the current cryptocurrency market is in a stage known as 'depression', with many people exiting the market and selling off their assets due to a loss of faith in the bright future of cryptocurrencies. However, it is crucial to survive this stage as such pullbacks occur in every cycle and are part of the market psychology. Despite larger price drops in the past, no catastrophic events have occurred, and considering all factors and the overall situation, things are not as bad as they seem.
There are more bullish factors than bearish ones, and it is advisable to take advantage of the current sentiment. Although altcoins are far behind Bitcoin, which has doubled since the approval of the ETF, people are hesitant, thinking that 'the price of Bitcoin is too high'. Ironically, this is exactly when the major uptrend begins. Due to the small inflow of ETH ETF and the FUD brought by the summer stagnation, the local market may not see significant growth next month. However, the overall situation remains unchanged: growth is inevitable. Implementing a DCA strategy (Dollar-Cost Averaging) during this minor pullback will yield the best results and help you outperform 90% of traders.
When in doubt, the best choice is to look at the bigger picture. Look at the altcoin index, which is currently at the same level as in November 2023. Do you know what happened after that? The market grew 5 times. What you need to do now is to focus on the positive factors that drive growth, such as:
1. Approval of the Ethereum ETF S1 form
2. Trump's support for cryptocurrencies
3. The upcoming US interest rate cut
Here are some potential reversal factors:
1. Global Liquidity Index: This indicator can assess the current market stage. It covers the assets of major central banks and the Federal Reserve. Currently, global liquidity also seems to be in the consolidation phase.
2. Stablecoin Index: This indicator reflects the new funds entering the crypto market. As we can see, we are far from reaching the level of the previous cycle. The golden rule is that once liquidity starts to increase, the market will rise accordingly.
3. BTC.D Index: The chart shows the percentage of BTC's market value in the total crypto market value. Look, BTC.D has been consolidating between 54% and 57% since April. Once it falls below this range, we can expect a huge altcoin season to begin.
4. Trading volume on all platforms: The current trading volume is significantly lower than the peak level. Despite the higher price of Bitcoin than in 2021, the trading volume is still lower. The lack of retail activity is obvious, but once it recovers, the market will be ready to grow.
In conclusion, it is suggested to consider a part-time job to increase income, research new narratives and ideas, accumulate undervalued altcoins, and learn new skills. Accumulating the right positions now can bring 100 times the return in the future. You will thank yourself for taking this step. At the end of the cycle, you will be one of the winners.