Genius and crazy are next-door neighbors. And that’s why the ostensibly crazy move of buying the dip in the crypto crash today could prove genius in the long run.
Let’s not sugarcoat things. Crypto is crashing hard. It’s ugly. It’s painful. In truth, it’s every nasty word in the English dictionary.
But it’s also par for the course when it comes to the crypto space.
These tokens are known for their hyperbolic boom-bust-boom cycles. Right now, we’re in the “bust.” But if history does repeat, then what comes next is the “boom.”
Importantly, our analysis strongly suggests that the next “boom” phase for crypto could be just around the corner. And between now and then, cryptos may not have much farther to fall.
So, to that end, it may seem crazy to think about buying the dip in the crashing crypto markets. But I think it could prove genius in two or three years.
This Crypto Crash Is on Borrowed Time
Based on previous crypto winters, the current bear market is in its final innings.
Bitcoin (CCC:BTC-USD) peaked in early November 2021. It’s now mid-June 2022. Therefore, the current crypto bear market is going on seven months.
Historically, crypto bear markets last about a year. The one in 2017-18 lasted about 12 months. And 2013-15’s bear market lasted around 14 months.
Therefore, the historical precedent is set for this crypto bear market to drag into November/December. At that point, Bitcoin should enter a new “boom” phase.
Fundamentally speaking, that tracks. New “boom” cycles tend to start about a year before a halving. The next Bitcoin halving is due for May 2024. Therefore, it makes sense for cryptos to enter a new boom cycle by early 2023.
Indeed, it seems we’re just months away from a bull market that carries Bitcoin and all cryptos to new highs!
Dogfight at $20,000
We expect there to be a fierce battle between bulls and bears at the $20,000 level for Bitcoin. And ultimately, we think bulls will win.
Historically, previous crypto bear markets have bottomed when Bitcoin retreats to and successfully consolidates around its “realized price.” That’s the average cost basis for investors in the market.
The 2015 and 2018 bear markets bottomed at those levels. And so did the COVID crypto crash in 2020.
The realized price level has traditionally been a strong technical floor for Bitcoin during market downturns.
And we’re right at that level today.
Consequently, we expect Bitcoin to consolidate around $20,000 over the next few months, gather some firepower, and then enter a new boom cycle in early 2023.
Overall, then, we think now is a good time for long-term investors to think about buying the dip in cryptos.
The Final Word on Buying the Dip in Crypto
Cryptos are crashing. And traditionally, crypto crashes have produced generational buying opportunities. We don’t think this time will prove any different. At some point, likely by the end of the year, this bear market will transform into a new bull market. And we’ll see cryptos start to really shine again in 2023 and ‘24.
But to profit from this potential crypto resurgence, you need to buy the right coins today.
This is not the time to be taking a lot of shots in the crypto market. Most tokens out there today will fail in the long run. That’s a simple reality. The market became overcrowded with unsubstantiated froth. That froth needs to be killed off, and you need to steer clear of it.
I’m talking Dogecoin (DOGE-USD), Shiba Inu (SHIB-USD), and the other meme tokens and pup coins. Avoid them like the plague.
But it’s time to take heavily concentrated bets on high-quality cryptos. The survivors of this current winter will turn into huge long-term winners.
In other words, when it comes to crypto investing, leave the shotgun at home, and bring the sniper. It’s time to focus in on a few key cryptos. Go “all-in” with those names, and forget the rest of the market.
To be sure, that’s a tall order. There are over 6,000 cryptos in the market today. Most will go to zero. Only a handful will be 10X-plus winners.
Fortunately, we have a programmatic, quantitative model that provides a proven way of identifying only high-quality cryptos for huge gains.
This will be the key between winning big and losing big in the current crypto crash.
And tonight, with my colleague Charlie Shrem, I will reveal parts of this model to the general public for the first time ever.
We’re even going to give away one of our top crypto picks for free.
There’s still time to reserve your seat and access our report, “10 Widely Held Cryptos Knocking on Death’s Door.”
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.