everyone is so quick to write off these altcoin rallies as “exit pumps”
which is fair
still a bit jarring to see traders discuss things with 100% certainty, but whatever
here’s the correct way to think about it, in my experience:
- 90% of the time this happens, it is a cautionary signal; marking the end of a rally or even end of a cycle
- the other 10% of the time, it is the precursor to an even more relentlessly bullish market
if you’ve been following me for the past few years, you’ve seen me make this point before — you’ve also seen that, on the contrary, this counter-thesis has played out more often than not the past 3 years [because this has been a bullmarket during that time, and variance differs greatly based on cherry-picked time scales]
it’s the epitome of ‘pros and cons’, pertaining to probability + risk/reward
a continued face-melting rally across the board where opportunity breeds even more opportunity is less likely, but it’s also 100% of the reason as to why you’re here trading crypto
so if you’re not mentally preparing for both scenarios, you’re doing yourself a great disservice.
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