Catching the BOTTOM for altcoins? NO!If you are trying to catch the bottom for a top movers from 2021 bull market and you´re dollar cost averaging all the way down, it may be not as good idea as it seems to be.
Catching the absolute bottom is very hard and not many persons can do it.
Most likely you will have to wait many months until you will be at the break even or you will make profit.
Altcoins after dropping 90 % from the all time high can still drop another 90 %!
In this analysis, we are going to have a look at BITCOIN CASH and NEO that were top movers in 2017 bull market and Solana which was a top gainer in 2021 bull market.
Bitcoin cash:
- If investors were trying to catch the bottom when BCH dropped 77 % from its ATH, they were down 92 % when BCH found its real bottom.
- It took 48 months until investors were at the break even
- The price never reached ATH from 2017 again.
As we can see, NEO which was another top mover in 2017 didn´t reach its previous ath in 2021 bull market:
More examples? XRP, XLM, DASH, IOTA
SOLANA (just an example. We have nothing against the project or its team):
Do you think that Solana will be different? Maybe? Ok. It did very well in 2021 and most likely, it won´t do super good in the next bull market in 2023 or 2024! Why? Because there will be many new coins with a new hype and without bag holders.
Conclusion:
- Dollar cost average into Bitcoin instead of your favourite altcoins.
If you want to DCA into altcoins, don´t throw all your money in as your favourite altcoins can drop always another 90 % and nobody knows how much they will recover!
- Waiting for new coins without bag holders may be not bad idea
- Bitcoins is a safe bet!
- Altcoins = high risk
Feel free to share your opinion in the comment section!
