So how can you use SMA50 on daily chart to recognize the cycle top and even the top of alt season?
(I will usually use the term MA50, because it is shorter and nicer, but it is basically a simple moving average).
On the beginning, lets remind that there are no rules in the markets, but a trend is your friend.
So how it looked like in 2021 bull run when #BTC crossed its previous ATH?
It basically held MA50 on daily all the way to its cycle top.
After the cycle top, it significantly broke MA50 and then was trying to reclaim it, but unsuccessfully.
And after few bearish retests, price made a final drop which took it to the new bear market.
So if you saw the signs of struggle to reclaim it, and constantly doing bearish retests, that was a good time to sold everything.
Of course, you wouldn't have sold the pico top, but you locked profits from that bull run and went much better than those who kept holding and hoping for a price to go back up and then went to the depts of the bear market.
So, how are things doing today with MA50?
Since BTC broke its previous cycle ATH, this dip was just the first touch of MA50 and it held as support.
So like I said few days ago, I wouldn't proclaim the cycle top on the first touch.
When you see the daily price significantly losing MA50 and then struggle to reclaim it for some time and start doing bearish retests on it, then you can feel free to sell everything.
You might not sell the cycle top, but you will go much better than giving all the profits back to the market.
But! A big but.
If we overlay on this chart BTC dominance daily chart, you will see that this struggle to reclaim MA50 was basically the bottom of the BTC dominance chart.
So if you use this strategy and sell your favourite altcoins when BTC struggles to reclaim MA50, you might sell the pico-top on your altcoins ๐
Hope this ๐งต was helpful.
Took some time from my Sunday to wrap it all up, so all the feedback and retweets are much appreciated.
And I think it is good to share because it might help all the brave bear market survivors to lock all the much deserved profits at the end of alt season ๐ต๐ต
Let's get this right, folks, shall we? ๐ฅ
LT ๐
โ๏ธ๐ผ
Now do yourself a favour, turn on SMA50 and 200 and see how many alts today made a retest on some of them or close by at the golden cross that occured or will occur soon.
Higher.
So where are we concerning altcoin season?
According to the few charts, there are 3-4 months of expansion ahead of us (for many altcoins after that will be their cycle top), probably in March or April 2025.
Then I expect few months of a retrace and then final bounce until the total cycle top probably in November / December 2025.
Few charts are suggesting that.
Let's see first monthly #OTHERS / #BTC chart.
Price just broke MA50. Last time alts were pumping for 3-4 months after that before the first cycle top.
Monthly #TOTAL3 / #BTC chart suggests that after the breakout of the green box, we can expect at least few months of the explosive growth.
On the #OTHERS.D / USDT chart, we can also see that there are few months of good pump on alts ahead of us before the first cycle top.
Monthly #TOTAL2 / USDT suggest the same thing. After breaking previous ATH, there were 3-4 months of explosive growth.
So I don't think that alts have topped, but I also think in the next few months many of them will have their cycle top, so party might not last as long as we think.
After the dip in the second part of Q1 2025, second top will probably be in Q4 2025.
Can anyone guarantee that all of this will happen? Knobody knows future for sure. We are just comparing price action of the last cycle.
Top on individual alts could be sooner or later than that.
So my strategy for taking profits is not waiting for a cycle top. I am shaving some profits as we go up and putting them into stables on my crypto cards for spending / pulling out cash at ATM's or in my Tangem cold wallet for the future usage.
Why am I doing that if I believe the cycle hasn't peaked yet? Because I can get hacked, I can press a wrong button or they can rug the project that I firmly believe in etc. So that way I am securing profits on the way up and not going on all or nothing.
At the same time, I use those small profits for living. I don't use my monthly sallary from my job. Almost all of it is going straight from my bank account into cash (my wife is my cold storage for cash๐). We are doing this strategy since the mid-cycle top. Living 99% from stables, except some expenses that I have to pay with my bank card.
So that way if any crap happens to crypto, we are still increasing our stack of money.
And by the way, I noticed that when I have a huge number in my portfolio, I am more inclined to ape any crap and lose money. So lower portfolio helps me to be disciplined and play the markets more careful.
Also, now I need only around 2.8x on my portfolio for my cycle target. I reached first one in April this year, bought a small house for my parents. And reaching second target will give us plenty enough money for living. Because we love our jobs and for now we will continue to work, of course not so much as today.
We are planning to play next cycle with the profits from this cycle. If bear market bottom comes in Q4 2026, as I expect, we will not have to wait so long.
But first, let's enjoy the most exciting phase of the cycle! ๐๐
Hope the charts and some tips were helpful.
Let's all make it in the next few months! ๐ฅ
LT ๐
@LongtermR Believe me i miss your Analysis, it give me so much confirmation and clear my ideas, waiting for you to start selling so that i start selling to ๐ ๐