Seems like a credible screnario. I take it that it would be smart to keep holding the technologically solid coins that now occupy places from the third to the twentieth or so while dipping into the penny coin market for short periods of time. I took my money out of Bitcoin in mid-December. Until then I kept it in Bitcoin as it was rallying so hard.
I would say, though, that it would be smart to keep an eye on new coins that are part of an application using the blockchain to solve a specific real world problem. But the problem is that there are no established economic models for calculating the fair value of such coins in case the applications that they are used in achieve certain levels of market penetration.