YCC Crypto Alpha #06
Our latest community alpha & portfolio updates.
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These posts are your gateway to the latest market alpha, top coins to watch and our community updates. It also keeps our busy Patrons happy and informed.
This issue covers:
Latest market outlook
Top altcoins to watch during this correction
YCC portfolio updates
Market tip of the week
Market Outlook
TLDR: Bitcoin crashed and started a correction. This may last for up to two weeks before the new year starts. Use this period to position yourself and take advantage of any discounts before the next leg up.
As expected, the market turned bearish and Bitcoin’s price crashed by 10% in a matter of minutes. This was a typical flush to punish excessive leverage longs which assumed the price goes up only.
After eight consecutive weekly candles closed in green, this correction is nothing out of the ordinary in a bull market. It liquidated almost $500 million in open positions and reduced open interest on the orderbooks by two billion.
What is important now is to focus on when to re-enter the market to ride the next wave up. You have about two weeks to position yourself before prices resume their uptrend by the end of December or in early 2024.
This correction won’t last long since buyers can return in force at any time and a Bitcoin ETF approval in January 2024 may quickly push the market into a renewed rally.
Using the above Bitcoin chart, any price under 40k is attractive. Ideal entries are at 38k, 36k, and 32k. The last entry point is unlikely, but the first two seem realistic. You can aim to DCA as the price falls or set limit buy orders at those levels.
Top altcoins to watch during this correction
Bull market discounts don’t come often and when they do, you need to be ready. As Bitcoin corrects, the whole market is following which also provides an excellent opportunity to scoop up some juicy altcoins at a discount.
I have my eyes on a few altcoins which are approaching their value zones. Buying at a discount always offer a good risk/reward ratio, particularly in a bull market. Below are my top plays.