Bitcoin Fever Kicking In - Analysis & Retrospection

in #leofinance2 years ago

A Wild Week!

It’s been a great week for Bitcoin, and now alts are also joining the party. Yesterday, we saw many Top 50 altcoins experiencing significant gains. Litecoin and BCH stood out with gains of 10% and 22%, respectively. This was when I happened to check the markets. There was probably a bit of volatility throughout the day. Either way, it was great to see a bit of a rally for altcoins. I also noticed that Flamingo Finance was up 47% on the day, and had also experienced a green day the day before. It’s good to see DeFi getting a little love. It’s been a tough year and a half for DeFi.

We look back to looking forward sometimes. At the outset of September 2022, I suggested that September was likely to be a great accumulation period. Not only September but the remainder of 2022 was likely to be an extended accumulation period. Even though I envisioned further downside, it was clear that this was the time to begin getting serious about accumulation. As it so happens, we did see further downside… and that period turned out to be the most beneficial opportunity for accumulation. The following is an excerpt from an article published in 2022, entitled, “September – The Month Of Accumulation”.

Anyone publishing analysis will be presenting a thesis over multiple publications and in order to accurately interpret the content, one needs to peruse earlier publications and gain a more comprehensive view. Confluence is always an essential aspect of effective trading. I believe we are entering a time that will be a good opportunity for accumulation.

Taking a look at the graph below reveals how the final quarter was indeed the most beneficial accumulation zone. This was From September until the end of December. As we all know, the beginning of 2023 was the beginning of a reversal and eventually printed a bottoming formation that is still intact.

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What we need to understand now is… what’s likely to be next. This was explained in a recent post, in which I addressed the “safe accumulation zone”. This is where I now believe the market to be. This period, I envision to be a little longer, and could also see sudden “unexpected” moments of volatility. In other words, the next six months are the final opportunity for accumulation before things get heated up. I go into detail regarding this in a recent article entitled, “The Accumulation Zone – Where Warfare Takes Place”.

Let’s take a look at the screenshot below for a second. As mentioned, I believe that we are likely to see Bitcoin trade within this green rectangle for the remainder of the year. If things go well, we could pierce that second rectangle. That being said, a sudden correction could also provide extremely lucrative buying opportunities. We saw this during a similar phase in the previous cycle. However, similar to that, and the covid correction, it’s likely to be more of a buying opportunity than a problem. You have to look back and observe, and ignore the current noise.

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For instance, when I mentioned September as a good point to start accumulating, there was what looked like a tiny spike prior to further collapse. Those who pay attention to noise would have suggested that the best accumulation period was already passed. A small spike now looked a lot bigger then. It’s only in revisiting, and viewing from a position of hindsight that we can establish clarity, and verify validity… not in the moment.

Conclusion

The next few months to six months present the final opportunity for accumulation, in my opinion. This is effectively the accumulation zone that unfolds just above a bottoming formation. Once this sideways to upward trend ends, the trajectory and acceleration regarding price movement intensifies significantly. Once the halving occurs, appreciation will intensify exponentially and continue into 2025. These are my views and expectations regarding the market. Please conduct your own research, and don’t consider this investment advice. All the best, and see you next time!

Disclaimer

First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.

This article was first published on Sapphire Crypto.