When to Cash Out of Altcoins (Not Financial Advice!)
Here's a breakdown of potential exit points for altcoins based on a technical analysis approach:
The RSI and Bull Run Stages:
RSI (Relative Strength Index) on the monthly chart is around 70. According to historical data, closing above this level often signifies the peak growth period of a bull run.
Price surges past the All-Time High (ATH) with a high RSI reading (above 70). This is often followed by a correction, another price rise (potentially reaching a new high), but with a divergence on the RSI. This divergence indicates weakening momentum, even if the price keeps rising.
A second price peak with a downward sloping RSI (divergence) confirms the top. This is a strong signal to consider selling (represented by the black line on the chart).
Entering and Exiting the Bear Market:
The market enters a bearish phase. Historically, the RSI dips below 50 and stays there for a few months, signifying a g$BTC $ETH $SOL ood time to buy or accumulate altcoins.
RSI eventually climbs back above 50, marking the start of a new bull run. The cycle then repeats, with the RSI potentially exceeding 70 again.
Remember, this is for informational purposes only, not financial advice. Always conduct your own research before making any investment decisions.
Additionally, consider including popular altcoins like Ethereum (ETH) and Binance Coin (BNB) in your research.
