Sold the scam bounce, it's over for crypto for a while.I ended up going all in on ETH (and a few other) altcoins at slightly below $1800 per ETH on the 23rd of May. I saw the scam for what it was, while it was happening. My experience in trading crypto since 2016 paid off for me there. I've managed to profit handsomely from the bounce, establishing a new portfolio ATH and feeling very happy with that. I told myself I wouldn't trade for a while, but this opportunity was just too good to let slip.
Right now we're sitting at a 65% bounce off the lows for ETH. More for other altcoins. That's obviously very formidable. I don't like making my decisions based on percentages, since crypto is peak clown world, however there are limits to any bounce. I foresee the potential of raiding stops over 3k for Ethereum and maybe even going towards the all time high. However, at this point it feels like late stages of the dead cat bounce to me. Looking at various altcoin charts such as BNB on the daily, I do not believe that the crypto bull run will immediately resume after a devastating event such as what has transpired in the last week. These dumps have shaken investors to the core. Similarly, institutions that bought into the meme are looking at serious levels of rekt.
I do think it's likely that the scam bounce continues for a while longer, however, I do not believe there are serious gains to be had. At most, we're talking about a 20% gain while risking far more than that. So, don't take this call as: Ethereum is going to drop to 0 right here, more as in: the bull run is over for now. I feel a strong sense of satisfaction with my trades and overall with my gains in this bull run. I don't see any necessity for me to "make more". If you do feel that way, you probably fucked up, since literally everything pumped over 2000%. There won't be easy bailouts for the dogecoin, cummies, shiba-inu coin normie crowd. They will indeed get devastated and learn the harsh realities of the market.
What is the market? Do assets which are being traded have any value? They do not. They merely maintain the illusion of value, while others are willing to buy. That is what prices these assets. When buyers are depleted, and fear strikes the heart of holders, it is over. There won't be a quick recovery. Holders will once again suffer until they've lost everything. Nothing has changed in the crypto market. ETH 2.0 has been announced to "be ready at any moment" since 2017. This market is driven purely by speculation, and will remain that way. The fact that crypto prices would continue pumping, after this massive dump, after peak clown world media attention, and normies buying Dogecoin on Robinhood, is delusional.
Many investors falsely believe that Bitcoin rises because of its deflationary nature, and that it must "continue to rise". They couldn't be more wrong. I will repeat: Bitcoin will rise while people continue to buy it. As long as more dumb money is convinced, it will continue rising. The deflation scheme has nothing to do with the rise, except it's a (logical) reason that can be utilised to justify the purchase of Bitcoin. But there are no guarantees whatsoever. Cryptocurrency bulls and holders have been swept into a sense of delusion, believing that perpetually staying bullish is the way to go, since that has been correct for all these years. But, this will not last forever.
So, I'm bearish. When do I buy back in? Given that I've had a great performance, I'm waiting for a break of the Ethereum / Bitcoin ATH in the short term. In the long term, waiting for an accumulation phase after further dumping. "Hodlers", enjoy the fake scam internet coins I've just dumped on you. I truly hope this works out well for you.
