Unlocking the Power of Bitcoin Post-Halving:
A Guide to Navigating the Crypto Market Right Now...
Insights from 2016 and 2020 Cycles Revealed!
Cryptocurrency Investing
I am writing this BLOG Post with the intent of sharing it on StockTwits.com. I post often on StockTwits as @DJamoney.
I have been a Bitcoin Investor since 2017-18 Timeframes and have added & subtracted over that time. For the last 12 Months I have been in 100% ADD Mode and there is little DOUBT that I am a Bitcoin Bull. Not only have I added more and more $BTC.X over that time, I have also added the Bitcoin ETF in the form of $BTCO and $ARKB.
I have spent many years in the crypto space and have also become an avid Chartist using Tradingview.
However accomplished I may think I am as a Technical Analyst / Chartist, I have come to realize that Charting Bitcoin is kind of like "Herding Cats". I am pretty sure that is an incredibly fruitless and frustrating endeavor.
Now when Bitcoin is cooperating, I often felt like I was engaged in some activity that, well maybe I shouldn't be!
Bitcoin and Trading BITO, BITX and BITI Call Options has been very Profitable over the last year or so.
But we have HIT that point of POST-HALVING Doldrums, not to mention the other market factors hard at work to stifle even the best laid BULL Plans.
Having a Technical and Engineering Background I have always made use of plenty of external reference materials and I am not one to NOT seek out additional expertise in areas that I want to become EXPERT myself.
So years back I began following a young Dude named Juan Villaverde. He is credited for making his fair share of Bitcoin "TOPS" and "BOTTOMS" Calls.
He is also credited with developing the Bitcoin 320 Day Cycle and also the 80 Day Cycle that I have followed these cycles religiously and they are almost always "SPOT ON" and if not, they are damn close and close enough that I have a tremendous faith in these cycles.
A Couple of years back I learned that he was with Weiss Crypto Investors. (Maybe he always was?)
So I purchased a low cost subscription with their service called "Weiss Crypto Investors", a Newsletter that would give what I considered "Basic Recommendations" for quality coins and tokens as well as providing incredibly valuable insight on Bitcoin and where it was at any give point in time.
I have also subscribed to other higher end services of theirs, if for no other reason as to confirm that my own "Hidden Gems" searches and crypto portfolio building was on point. Kind of a validation of what I was doing on my own. And of course, there has always been a profitable "NUGGET" or two in their content somewhere along the line. (Actually more often than that).
But let's get to the MEAT of this Article FAST: (Time is of the Essence in the Crypto Markets)
So when I write articles I normally make a habit of referencing other experts in the space, but on a limited basis.
It is good for validating my articles, it is good for SEO and it is GOOD for the Author I am referencing.
This ARTICLE... I am going to GO WAY OUT on the Limb and say that I am going to SHARE a Ton of Juan's most recent Newsletter as it is IMPORTANT. It is important for me and it is important for my followers and it is important for people that have ZERO intention of following me.
With the recent Volatility with Bitcoin I was Charting and trying to get a bead on direction. I was also looking at the Liquidity Heat Maps trying to get a feel for where and how significant the SHORTS / BEARS were sitting as well as looking for over-extending leverage traders and also STOP LOSSES.
But I was having a SUPER DIFICULT Time trying to get comfortable with current direction (as of writing: 4/26/2024).
So out of the blue I go to check my Email and low and behold, I had received an email from Juan at WCI with my Newsletter for the Month. ($AVAX.X a BUY right now if you are so inclined) So I started to read it and Blah, Blah, Blah.
Good Stuff, but as an advanced / seasoned crypto investor there was nothing that peaked my interest until I hit the part about Bitcoin. Now I was interested.
I trade BITO, BITX and BITI Options and have gotten up to a point where I was up over 7000% on the year. And recently have had a bit of a backslide. But not enough to be overly concerned. As I can trade BITI on the Way Down or as a hedge to my BITO Options if I am letting them ride.
But this week was particularly bloody for my options. A rare occurrence. I have coined my Options Trading using BITO as the "Never Ending Dry Powder Generation" System. But not this Week.
So this is where Juan's article about Bitcoin Post-Halving was so timely. As I stated above, I have long been a fan of his 320 Day and 80 Day Cycles. Even teaching people about them in one of the Discord's that I was a Cloud Analyst for.
And it has been very well received. The further I got into the article, the more I knew that I needed to share this information.
I don't think I am getting to Juan's Article Fast 🙂 !
So I read it once. And then read it again. I wanted to make sure I had it ALL in perspective.
So this is what he said: (I will add snips from the Newsletter via "BLOCKQUOTES" or referencing his article properly.
Here we go:
From Juan and the Weiss Crypto Investor Newsletter
Crypto’s 2 Powerful Indicators Go Bullish: (Juan Villaverde)
As I said earlier, the 320-day cycle and the Bitcoin halving have converged and are both showing a long-term bullish trend for the broad market. So let’s explore each to understand how they’ll converge to send the crypto market — and your portfolio — to new heights. Starting with … The 320-Day Cycle and Your Portfolio On April 13, 2024, the latest data from the Bitcoin Liquidity Index (BLX) signaled a 320-day-cycle correction. Bitcoin’s journey over its prior 320-day cycle had been nothing short of extraordinary. Beginning in September 2023 at around $25,000, Bitcoin surged to just above $73,000 by March 2024, about a 200% increase. The 320-day cycle correction is a profound adjustment period for the cryptocurrency market. It is particularly noticeable in the case of Bitcoin — which is a result of its market leadership — as well as having more historical data than any other crypto to analyze. Unlike the shorter 80-day-cycle correction, which might see a price retreat of about 15% over two weeks, the 320-day version is much more substantial.
It often ushers in price declines of at least 20% over a couple of months. Bitcoin’s current market behavior is textbook for entering a 320-day correction phase. The last observed 320-day-cycle correction took about two months to complete, from July to September 2023, with Bitcoin retracting roughly 20%. Given this pattern, I predict a similar trajectory.
Right now, we’re witnessing the early stages of this correction. The market is already adjusting downward from a peak near $73,000. And now, a potential low for Bitcoin looms near $58,000 — which marks a 20% correction. This retracement generally lines up patterns observed in past years, where pre-and-post-halving periods generally usher in significant market corrections before any new rallies commence.
In this regard, you should probably brace for continued market volatility through late May and possibly beyond. That’s because the rally leading from the last cycle trough to the recent peak was an impressive 200%, and the market typically needs time to digest such a big move up. That doesn’t mean the bull rally is over. Far from it! The biggest gains are still ahead. But the market needs time to catch its breath before it’s ready for the big run.
This pattern of severe corrections in altcoins during a 320-day-cycle selloff is characteristic and expected.
Altcoins typically undergo more pronounced corrections during these periods, acting as high beta counterparts to Bitcoin’s more stable price movements.
For investors, this is a crucial buying opportunity, because this is no garden-variety crypto pullback.
It is a strategic opening to scoop up high-potential investments, at prices you’re not going to see again for a very long time. For seasoned subscribers, who are already fully invested, it’s not necessary to buy more of the coins you already own. However, we do counsel caution and vigilance as this correction winds down. As you contemplate the current market, know that it is best understood as a preparatory phase for the next bull run. Those who capitalize on these lower prices are positioning themselves advantageously for an upcoming major — if not epic — up move. The altcoins, despite their sharp declines, are poised for recovery, likely reaching new highs once the market stabilizes post-correction. As always, our strategy is not just to survive the storm. It’s navigating through it with foresight and preparedness, ensuring we’re poised for success when the market inevitably turns in our favor. Now, let’s turn to our second indicator, the Bitcoin halving.
Understanding the Bitcoin Halving:
Butting up against the 320-day-cycle correction is Bitcoin’s halving. While the halving happened a week ago, we should expect to see its continued effects as there is a chance it can impact the 320-day pullback. But before we can delve into the technicalities of the just-completed Bitcoin halving, it’s crucial to understand its origins and implications. The concept dates back to Bitcoin’s inception in January 2009, when the mining reward was set at 50 BTC per block. This reward halves roughly every four years, which gradually reduces the rate new BTC are created. This ensures a controlled supply and mirrors the extraction of precious resources like gold.
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What Tools, Platforms and Processes to use:
My goal here is not to SIMPLY give you a CANNED Portfolio (as I do not give Financial Advice or make specific recommendations. I do what I do, you do what you do) My Goal here is to provide you with a look at the process that successful cryptocurrency traders and investors take to create a winning portfolio.
Let's Dig In:
Tools & Platforms:
Several tools can aid in cryptocurrency research and due diligence. Here are some of the top ones:
CoinMarketCap and CoinGecko:
These platforms provide comprehensive data on cryptocurrency prices, market capitalization, trading volume, and historical price charts. They also offer information about the teams behind the projects and links to their official websites.
CryptoCompare:
CryptoCompare offers real-time and historical data on cryptocurrency prices, trading volumes, and market trends. It also provides detailed information about individual coins, including their technology, development activity, and community engagement.
Messari:
Messari is a research and data platform focused on crypto assets. It provides in-depth profiles of cryptocurrencies, including key metrics, project details, and market analysis. Messari also offers tools for comparing different assets and tracking their performance.CoinMetrics: CoinMetrics offers blockchain analytics and data insights for cryptocurrencies. It provides metrics such as on-chain transaction volume, network activity, and mining statistics, allowing users to conduct deep analysis of individual assets.
GitHub:
Many cryptocurrency projects host their code repositories on GitHub. By reviewing a project's GitHub repository, you can assess the activity level of its development team, examine the quality of the code, and track the progress of upcoming releases.
Crypto Twitter, StockTwits and Forums:
Following influential figures in the cryptocurrency space on Twitter and participating in forums like Reddit's r/cryptocurrency can provide valuable insights and discussion about emerging trends, project updates, and market sentiment.
Whitepapers:
Reading the whitepapers of cryptocurrency projects is essential for understanding their technology, use cases, and underlying principles. Whitepapers typically provide detailed explanations of the project's objectives, technical architecture, and economic model.
Token Terminal:
Token Terminal offers financial metrics and analysis for decentralized finance (DeFi) projects. It provides data on metrics such as revenue, earnings, and growth rates, allowing users to evaluate the financial performance of DeFi protocols.
By leveraging these tools and resources, you can conduct thorough research and due diligence to make informed decisions when investing in cryptocurrencies.One overlooked element in selecting assets is choosing a "Narrative" you believe in and also feel strongly that it will be the winning Bull Season Narrative.
As we saw in the Stock Market in 2023, A.I. or Artificial Intelligence was a driving force and one of the strongest investment narratives of the year.
I tend to fall in the camp that A.I. will also be hot in Crypto, but it may not be the Hottest Narrative.
Do you digging and decide which narrative works for you and will work for the Bull Run in 2024.
Building the Perfect Crypto Portfolio
All Crypto Tools are Not Created Equal:
OK, so you are ready to get started. So I am sure you already have a handful of potential candidates if you have gotten this far. The 1st thing I will say in "short order", is DO NOT Fall in Love with any single asset.
And even if you are young and aggressive, it pays to have a little bit of stability in even the most aggressive investors portfolio selection.
So "What I Do" (remember, you do you)...
I look at assets like Solana $SOL.X, Celestia $TIA.X, $RNDR.X as the foundation. Mid Caps with plenty of room to grow. Yet not as risky or volatile as say $BONK.X. (Meme Coin built on the Solana Ecosystem)
And then I dig in looking. Using all of the tools I have referenced above and more.
But often, before I really start the deep dive research and due diligence...
I rely on one of my OLD Favorite "VISUAL" Tools and also on a concept I learned very early in my investing days... "The Trend is Your Friend".
I have always been a believer in this simple yet obvious concept.
I am also a HUGE believer in the concept of "The Market Give Us Plenty of CLUES".
So I go to CryptoBubbles.net and create a simple "My Crypto Portfolio" Watchlist and then I start sorting.
I go by Market Cap first. 1 to 100. Sort the LIST and see who had the biggest gains. And then walk it down from a Year, to a Month, to a Week, to a Day, to an Hour. See who is HOT and who is NOT.
Some assets have a massive start and then fall flat for a number of reasons. Sometimes, Founder's Rug Pulls, sometimes less obvious reasons.
But I simply FOLLOW the GREEN. If I can find assets that are green 3 out 5 Timeframes. 4 out 5. Better even 5 out of 5 Timeframes. Now these change over time and the more mature an asset the less likely you will see GREEN across the board. But add the ones you like and have a NICE Green Trend to your Watchlist.
Then go to 101-200 and so on repeating the process.
Here is an obvious comment, but I do NOT want to overlook it.
The further you go down the list, the lower the market cap, the greater the volatility.
But with that volatility also comes opportunity. If you can find some of the low or micro-caps closer to the bottom of the Top 1000 Assets, those are ones that can be tomorrows winners.
This is NOT an etched in stone concept.
Also, I do like to have a few from each Market Cap Block, as well as keep true to my WINNING Narratives.
Once you have compiled a GOOD "Crypto Portfolio" Watchlist you know move to adding them to your Tradingview Watchlist title the same. (or whatever Charting Tool you use)
Not using Tradingview? Click the Button below to start a FREE Trial.
If you decide to try Tradingview and end up using it, Subscribe to my FREE Charting & Indicators Email and I will send you my Chart Setups & my 2024 Crypto Watchlist.
The "HEAVY LIFTING" Starts in the Crypto Portfolio Building Process.
Now some people simply throw something in a portfolio on a whim and others comb through tons of research on the platforms I referenced above. CoinMarketCap, CoinGecko, Messari, DeFiLama and more.
The things I look at are: #1 Narrative or Category. Trend. Backers, Developers and then Tokenomics.
Without getting into a SUPER Deep Dive Here... (I am almost finished putting together a "Deep Dive" Course on this Topic and will be offering it for only $9.77. Why so cheap? I want to share the process with as many people as possible and I do not want cost to be an obstacle for Crypto Enthusiasts that are just starting out.
All of my Newsletter Subscribers will have the early option to get the course content for the crazy low price.
So simply Sign Up for the NEWSLETTER at the Bottom of this page.
Back to the Crypto Portfolio Research... Learn about Tokenomics early in the process.
Why? Because when a Coin or Token Launches, not ALL of the coins or tokens are in circulation. There is a Supply Distribution Schedule and you will know when there may be periods of price weakness due to the release of more coins or tokens. Just be very aware of Cryptocurrency Supply and current Circulation.
I use DefiLama or Messari for this information as a rule. You can also find this information on the individual crypto's webpage and look under "white papers" or "docs".
Is there More?
Yes, a ton more.
I know this can be like DRINKING from a Fire Hose. So I am going to stop here on this Topic.
FOR NOW! There is More. But I will have follow POSTS to this one and the ENTIRE Process will be in the Online Course that I publish here. Just stay tuned and be a Subscriber to the FREE Newsletter.
If you have questions, FEEL FREE to Email me @ info@cryptojamz.com and ask any questions that you might have.
If you have been on StockTwits, you already know I am pretty inclined to share and help anyway.
Last but Not Least, Here is a Post I Published on StockTwits...
It includes most of the Crypto Symbols that I am HOLDING "Right Now"... as of the date of this post publication. So depending in when you read this, you will see how current it is.
Click the Image Above to Visit StockTwits and Read the Post and SAVE the Image
My Conclusion:
I hope the article gets you started on your path to building the "Perfect Crypto Portfolio for 2024"
Maybe it was Enough, Maybe NOT Enough...
But as the 3 Bears says...
(I Hate Bears)
"This One was Just Right"
If Not Email Me Above I and I will give you the FULL Rundown...
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