How is Bitcoin laid out?
The wait is finally over.
Your efforts are about to be richly rewarded.
In this newsletter, everything you've learned will come together as a complete cycle over the coming months.
This period is critical to your present and future success. This is a crucial time for you to show off your talents and apply what you have learned. Congratulations on making it this far.
Now, let's get down to business. There is a brief summary at the end.
We have just entered the final phase of a four-year cycle. This is the most exciting and challenging time. The market is highly volatile, with prices potentially experiencing double-digit swings overnight and setting new records.
What is your exit strategy? To be successful, you need an exit plan. More on this later.
Just this week, Bitcoin reached a new high of $90,000. Not only was this a new price record, it was also the largest nominal gain in a 24-hour period. Bitcoin gained over $8,300 in one day. Please check the table.
Soon, daily swings of $10,000 will become the norm. Even though I feel crazy writing this, there is an 83% chance of this happening. No wonder, in my last alpha post I suggested you not to overcomplicate things and just buy one coin.
That's Bitcoin.
The price at the time was $70,000. Since then, Bitcoin has gained nearly 30%! Many people are looking for investment opportunities in altcoins, and the biggest opportunities are in front of them every day.
Bitcoin has the best risk/reward ratio among cryptocurrencies. When you consider risk and volatility, no other investment can compare to its returns. Keep this in mind when you look for emerging coins that carry higher risks.
However, altcoins are also growing rapidly. For example, the price of DOGE has nearly tripled since early November. I've been recommending it for months, when it was about 10 cents and now it's about 40 cents. This is the phase of the cycle where everyone can easily make money.
This is a time when everyone can easily make money.
However, this won't last long. This is usually the shortest phase of a cycle and the last phase before the end of the cycle. The faster and higher prices rise, we may soon reach the top of the cycle. So if this momentum continues for many weeks, we will reach the top very soon.
Here is the most optimistic scenario:
Bitcoin reaches $300,000 in April 2025. Only five months to go.
Is this possible? I have good news, please read on.
If current momentum will reflect the pink section mentioned above, the most aggressive bull run of the previous cycle (October 2020 to April 2021), then Bitcoin could rise another 4x beyond the breakout point. We just had a similar breakout this cycle.
If you look at the forecast, you can see that past price action has reflected the 100,000, 200,000, and 300,000 resistance levels. This seems like a strange coincidence. We all know what will happen, but there are reasons to be optimistic.
There are rumors that some countries are entering the Bitcoin market out of fear of missing out.
Additionally, we have confirmed that institutional investors are allocating a portion of their funds to Bitcoin, sending the message “you have to get exposure.” It’s a good thing that a Bitcoin ETF came online this year because now anyone can buy it.
What should you do?
If you've been following me for a while, you should already know that this is actually not the time to gain market exposure because you're already late. You gain exposure during bear markets or when markets are quiet (or dead). We are now the exact opposite. Market sentiment is running high and FOMO is starting to show.
The final stage of the cycle is selling and locking in profits. That doesn't mean you can't keep buying and making money. You can, but the stakes are higher now.
Bitcoin has entered a price discovery phase.
This means that Bitcoin has broken through its previous all-time high, and no one can predict how high it will go or where it will peak. Prices will fluctuate wildly and be filled with uncertainty.
Buyers and sellers will test each other in search of price tops. This is a very dangerous process because when the market suddenly turns, you don't want to be the last to take over. Please pay special attention to your use of leverage, as market volatility will be very high.
Therefore, your goal is to exit when the market is active. According to the chart above, the market will likely reach its most active state in early 2025. This is your best time to exit. Don't focus too much on the specific price, but complete your exit within that period. In the following sections, I’ll share more relevant advice.
1. Sell all altcoins when the market is most active
A good way to tell when to sell altcoins is to watch the performance of Ethereum and Solana. If they reach new all-time highs, it’s a good sign that it’s possible to gradually profit on the altcoin’s rise.
It is important to note that most altcoins, such as DOGE, have their own market cycles and may rise earlier or later due to other factors. In the case of cryptocurrencies based on internet culture, it’s because Elon Musk and President Trump keep pushing for it.
Trump’s recent announcement is big news for DOGE holders. Considering the exposure it will gain from this newly formed Department of Government Efficiency, known as DOGE, its price could rise to $1.
The important thing is to sell all the altcoins you can when Bitcoin reaches its highs. Don't get caught when the next bear market comes.
2. Don’t sell Bitcoin unless you have to
I would not recommend selling Bitcoin as it will continue to perform well in the long term and is expected to reach $1 million by 2030 or later. In this case, do you want to sell? It depends on your choice.
If you decide to sell, you can start with more than $100,000 and gradually sell for no more than 10% at a time. You want to sell gradually as the price rises, preferably closer to the high. A similar strategy can be adopted with altcoins.
If you hold less than one Bitcoin, you should focus on accumulating as much as possible, or prepare funds to buy more during the next bear market. If you hold more than one, try selling some at the highs to have the funds to buy more later. By all means, use the altcoin gains to buy Bitcoin in the next bear market.
No matter what, don't risk losing your Bitcoins. It is an important asset in your journey to financial freedom. Focus on the long term. However, if the money means a lot to you, seriously consider your reasons for selling. If it is used to purchase real estate, the real estate will preferably increase in value to several million in the future. Remember, Bitcoin is the strongest asset in the world!
3. Control the fear of missing out (FOMO) or risk suffering a loss
A common mistake is for people to rush to buy back after selling and seeing the price continue to rise. Doing so will likely result in re-entry at market highs, resulting in losses.
This is a common trap that many people fall into. Therefore, you need to have a clear exit plan and make it practical. After selling, put the profits somewhere hard to access, such as a hardware wallet, or invest in gold (such as PAXG), and don't touch the funds for at least a year.
When the market panics and goes into so-called "death mode" (i.e. the media reports that Bitcoin is dead), you can get back into the market with profits. Buy as much Bitcoin as you can then. I'll be there to help, don't worry.
Share your exit strategy in the comments and leave your desired goals for Bitcoin below.
Summary and suggestions
We are in the most exciting phase of this crypto cycle, coming to an end;
This is your time to sell and lock in huge gains with the goal of exiting the altcoin completely;
The end of the cycle is filled with opportunities, but also extremely high risks;
Have a clear exit plan and execute it without being swayed by the fear of missing out (FOMO);
The exit window may only last a few months, so grasp it carefully;
Your ultimate goal should be to accumulate more Bitcoins and think long term!
This article is reproduced in cooperation with: Shenchao
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