Crypto investors have always found motivation in historical data, and the current signals appear crucial. As altcoin prices retract to their three-year lows, investors are eagerly awaiting the right time to buy. But what should long-term investors be wary of? What does the latest signal indicate?
Is a Crypto Rise Imminent?
Well-known crypto analyst Michael Poppe recently commented on the period that cryptocurrencies find themselves in. Many investors expect further declines. However, a signal that has been accurate for 9 years suggests altcoins might be nearing their bottom, as we are about ten months away from halving. Poppe suggests that this could be the right time to buy.
Altcoin Others.D chart provides interesting data.
In the 2014-2017 cycle, they hit bottom 10 months before halving.
In the 2017-2021 cycle, they hit bottom 10 months before halving.
Now, with 10 months left, we might be close to the bottom.
Accumulate altcoins.
Long-Term Altcoin Investment
There are several important considerations for investors. For example, the issue of risk reduction is often overlooked. Many long-term investors allocate a large portion of their portfolios to Bitcoin to reduce risk. This also provides an opportunity to invest in altcoins that have not yet begun their ascent during the bull season.
Some key considerations include;
- Projects that do not generate benefits may disappear before seeing a bull season. Memecoins are particularly risky in this regard.
- Altcoins directly targeted by the SEC may face lawsuits that can last for years. The Ripple case is a notable example.
- Long-term investments should be kept in cold wallets to minimize exchange risk.
- The top 100 altcoins undergo significant changes during bull seasons. Altcoins that shone in the last bull run may underperform in the new period if they do not truly promise a future.
- Token inflation is extremely important. For example, while the ETH supply is shrinking (negative inflation), AVAX has double-digit inflation.
- When setting a sales target, you should consider the ATH market value.
These are just a few points to consider when making long-term investments in altcoins. Additional questions can be raised for a more detailed discussion on this topic.
