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1/15 I've cashed out my alts except for XRP and HBAR. This may surprise you if you've read my "XRP Millionaire Plan", but this is only a temporary adjustment. My overall plan is the same.
Why am I doing this?
A thread.
Why am I doing this?
A thread.
2/15 All of the alts I was invested in other than XRP (XLM, ADA, ALGO, HBAR) have made new highs but have not re-tested their lower support levels. All the TAs I follow and trust say that 99% of gaps are closed (meaning the assets will re-test those levels).
3/15 I was in substantial profit and I believe in replicating successful people. The successful analysts I follow have all said they're mostly out of trades and keeping cash ready for the inevitable re-tests of the lower levels. I have followed suit.
4/15 I am deeply troubled by Tether's lack of transparency and the claims of fraud against it (which my research has shown are credible). The deadline for Tether to provide the NY Atty Gen with documentation for their fraud investigation was today.
5/15 If it turns out that fraud was involved, and Tether is not fully backed by USD or was pumping Bitcoin through market manipulation (directly or indirectly), when the fraud charges come out the impact on the crypto market will be massive.
6/15 Here are the flows of crypto trades through Binance, Bit-Z, and HitBTC — the three biggest crypto exchanges in the world by nominal volume.
7/15 Crypto fractals (the "shape" of the charts) are very closely correlated with each other and tend to mirror. Some crypto assets act first and others follow suit. The front-running cryptos are showing a steep drop in price (such as TNT, which lost 80%+ before rebounding 50%).
8/15 Most other alts are mirroring the fractal pattern just before the steep decline, so I anticipate sharp drops across the board in coming week(s). Will this be b/c of Tether or are people just going to look for something to blame and Tether is convenient? I don't know.
9/15 XRP has a 50/50 chance of avoiding the crash since it is already very oversold from Dec when the SEC lawsuit dropped. If it does decline, I will back up the truck and buy that dip in a big way.
10/15 My goal is to be able to get back into my alts at half price or better from where they are right now. However, if Tether (or something else) creates another "black swan" event like March of 2020, I'll be waiting to get in at much, much lower prices.
11/15 Otherwise, my strategy has not changed. After buying back in, I still expect the other alts to moon before XRP, and when they do I will sell them into XRP to multiply my gains. However, if I'm right, this will let me 20x them rather than 10x them.
12/15 I will be watching Bitcoin closely, since it's the primary indicator of what will happen in the crypto market. If Bitcoin makes a strong recovery off of its 21 Weekly EMA, I'll reconsider getting back into alts at that point. I'll still be getting a much better price then.
13/15 However, if Bitcoin crashes below the 21 Weekly EMA and keeps falling, I'll wait for the alts to close the gaps and re-test their lows from March 2020, giving me a massive opportunity to multiply my gains much more than originally expected.
14/15 Of course, this is not financial advice, just my personal plan. I could be wrong, Tether could be cleared of fraud charges or be less impactful than I expect, there could be no black swan event and things could continue running like normal.
15/15 I said I'd tweet when I made major moves, thus this thread. Do what you feel is best for your financial situation. I fully expect a recovery and new highs after the black swan event, and as I've said, HODLing what you believe in is always a good investment strategy imo.
SUMMARY: Most alts need to close their gaps and re-tests their lows, Tether could have a major impact on crypto prices, Bitcoin needs to correct below its 21 Weekly EMA and all the TAs I trust are waiting for these corrections to occur. I am following suit.
