The reason why we decided to write this article is because there are people in our private chat in Altcoin Buzz Alpha that is asking us things like: “Hi team, Could you suggest if this is the time to sell and book profits? I am nearly 3x on a lot of coins so was just wondering is the bull starting or is it time to book profits?”
Or also: “I have kept 40% in USDT for the past 3 months but haven’t bought anything. AB had given me a list of coins to buy back in Jan but I have been busy and didn’t get a chance to research and get back in the market. I am wondering if I should wait for a bit or start buying now. Sorry AB your thoughts/advice would be appreciated” Let’s look deeper to try to answer them about how the market Moves.
Is it time to sell?
Well, let’s analyze the micro situation. Bitcoin pumped 8% and touched $57k. Good alts are performing on similar lines, and exceptional ones are exploding. Three days ago, the market moved triggering $350 million in liquidations in the last 24 hours. The market is moving under the influence of the futures market. So, is it time to sell? Well, it depends on three things:
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The coin:
If the coin is a blue chip like Bitcoin, Ethereum or a high cap like SOL, DOT, or ATOM, then there is no need to sell right now. Money has not started flowing into high caps yet. In the case of DOT, if you feel the opportunity cost is high, you can sell and invest in other high caps. But other than that, there is no reason to sell high caps right now. Even in the event of a correction in March, these coins may not dip more than 25%, and risking the position is not ideal for that level of correction.
If the coin is a mid-cap that exploded in recent weeks, then you should consider taking at least 10% profits. This is in line with the profit-taking strategy for the pre-halving period. If the mid-cap did not do much, it’s best to hold for a little more. Make sure not to sell any mid-cap at a loss.
If the coin is a microcap, then you can take 20-25% profit, if the coin has done more than 100% since February. If the coin did a 100% since January, take 10% profit only. The idea is to tap into full pre-halving performance. If the microcap did not move at all, then there is no need to sell in February.
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Your Entry:
If your entry is from September 2023 or before, then you can take some profit from the high caps and blue chips. Alameda is selling ETH at a rapid rate and Justin Sun is buying ETH for massive amounts. Both indicate that it’s best to take some profit in ETH. But it only applies to entries from September and before.
In a nutshell, if your entry is from September or before, OR if the coin did a 3x or above, you can book some profits. To understand how much to sell, refer to ‘The Coins’ section.
If your entry is late, and you are sitting on 50% to 100% gains, then you can take some risk and hold the portfolio a little bit longer.
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The Market Conditions
The market is certainly overheated right now. Bitcoin and Ethereum funding rates show that the market is overvalued. Sol’s high funding rate shows that degen projects could pump regardless of Bitcoin and Ethereum.
XRP and DOGE funding rates are less than BTC and ETH. So retailers are not fully active in this pump, which means retailer coins could pump in the next few days. This would result in a good correction in BTC and ETH.
Is it Time to Buy?
For most coins, there are not many buying opportunities. We will look into participating in new projects, and keep stables for the next dip. We are aggressively looking into entries into new AI and Gaming Gems in the coming days. We will also book some profits from our portfolio. More coming up.
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 the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than 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. Copyright Altcoin Buzz Pte Ltd.
