Hold on to your seats and don’t get shaken out now. Bitcoin keeps seeing this sideways trend. It keeps bobbing up and down between $60k and $57k. However, in the next two weeks, we could see a final leg down. But this should be the final call before the bull run starts. Nonetheless, there are plenty of people in panic mode. Many experts mention that $BTC can drop to the low $40ks and the bull run is over. So, are there reasons to worry about this?
No, there aren’t, and here’s why. We are still in a bull market. Even if Bitcoin drops to $47k, $45k, or even as low as $43k. Plan B also agrees. According to his chart, we’re still in a bull run. So, let’s get down to the details on this. Also, keep watching until the end, I will tell you how to get through this last shakeout.
Don’t Get Caught Out by the Shakeout Before the Bull Run Starts
That’s right, don’t get shaken out now. It’s a typical recurrence before the start of each bull run. All the paper hands get shaken out. So, don’t have paper hands but diamond hands instead. Right now, it’s important to keep your composure. There’s no reason to panic.
But aren’t we entering a bear market? No, relax, we’re not. Although, you may have a few points if we look at the TA. So, yes, the charts do show lower highs & lower lows. Still, that isn’t a bearish signal in our current state. The long-term view is bullish. Fair enough, though, the altcoins are hurting. Nonetheless, if we look at the overall market conditions, they are good. $BTC is doing good and typically, after a good run for $BTC, we see an altcoin season.
Here’s the reason behind this. The upcoming Fed’s liquidity injection and rate cuts. Many expect a rate cut by 0.50%. On the other hand, BlackRock doesn’t expect the rate cuts to be as high. Either way, expect volatility. Nonetheless, the long-term forecast is bullish.
A rate cut would make borrowing cheaper. This injects liquidity into the market. Some of that liquidity will find its way to crypto. Let alone if Jerome Powell turns on the money printer again. That will bring even more liquidity onto the market. In that case, also more liquidity will find its way to crypto.
And yes, I hear you. You’re not living in the US, so, what does that have to do with me? Well, the last time I checked, the US economy still leads the world. So, whether you like it or not, whatever happens in the US market does affect the rest of the world. That includes pretty much every place outside the US.
Let’s Look at Some TA
Let’s look at some key indicators for Bitcoin. I would like to start with the 100- and 200-week EMA. They can give a good sign that shows the end of the bear market. The 200-week EMA shows us that when they touched in 2015, 2019, and 2021, there was an upwards trend. Soon after, bull runs started. The current 100-week EMA level sits around $45k. In other words, it’s all on schedule for a big break-out.
Various other TA indicators show strong support between the $43k and $49k range. For example, Fibonacci retracements. In other words, a dip like this is not likely a prolonged drop. It’s more like a wick before it bounces back hard.
On the other hand, if $BTC touches the $50k to $51k range, we may see this followed by a drop to $44k. That’s because it may cause a cascading liquidation event.
Still, we’re all good for the long term, keep this in mind. Again, in the unlikely event this would happen, don’t panic. Don’t get shaken out. Instead, see it as a perfect buying opportunity. Remember, buy when there’s blood in the streets. That’s when you can make fortunes.
So, the message here is, is to stay calm and be patient. Don’t follow early directional bets, wait and see what happens. If you’re here with a long term investment, don’t pay attention to short term fluctuations. Instead, stay focused on your long term goal.
Historically, September is not a great month for crypto. Look at this chart. It’s mostly red with two small green years. On the other hand, October, November, and December are much more crypto-friendly. Plenty of green years with high percentage numbers.
You need to have a good strategy to come out of this in one piece. I told you already to stay calm and be patient. That’s despite the market being fearful right now. The last thing you want to do now is to panic sell. Instead, let’s take a look at some of the things that you should do.
Keep hold of projects with strong fundamentals. The fact that there’s fear in the market doesn’t change strong fundamentals. They remain strong and will bounce back. I’m looking at coins like $BTC, $ETH, or $SOL. Remove any leverage you may have. This is not the right time to play around with leverage. Even a small leverage like a 4x long on Bitcoin can get you liquidated if it hits $45k. For altcoins, it’s even looking worse. So, hold your spot and ride out any dips, no matter how deep they may be. They’re wicks and they will recover.
Use DCA for now. Dollar-Cost Averaging (DCA) is the way to go at the moment. Focus on strong sectors, like RWA, AI, or gaming. Focus on strong L1s, like Solana, Sui, or Kaspa. Take advantage of dips. Stop trading. Any dollar that you lose now is a 10x, 20x or even better, once the bull run starts.
So, what do you think of this shakeout possibility? Are you in a position to avoid being shaken out? Are there any other tips that you want to share?
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment and informational purposes only. Any information or strategies are thoughts and opinions relevant to accepted levels of risk tolerance of the writer/reviewers, and their risk tolerance may be different from yours.
We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments, so please do your due diligence.
By Nermeen Nabil 
Nermeen Nabil Khear