Be Careful With the Trash on the Curb

It’s at times like these that assets show their true colors to you. The dilemma that many in crypto are facing right now is that leading assets have already lifted off from 2022 lows to the tune of 50% or more, and you’re like many skeptical investors, you’re on the sideline. 

Notice how BTCUSD in the chart above is well above the 200 day moving average (green) and is making a successive series of higher highs/higher lows. This is showing positive accumulation by investors that continue to bid up this asset. 

I mentioned last week that sitting on the sideline during a bull run can be one of the most frustrating times to be an investor, which usually leads to an eventual “FOMO” buy near the top which you regret later. 

So many of you take the next logical step, which is to look for an asset which has NOT left the station yet. Case in point, a coin like ALGO: 

Now I’m not sure what the problem is with Algorand, but the overall Market is not buying into their forward prospects. You can see this by the tepid response of the price which is still well below the 200 day moving average. Sure, it certainly has rallied, but we’re not seeing the kind of accumulation that a coin like OKB is seeing: 

Here’s the point: When the next pullback comes, which coin do you think will be ditched fastest? OKB? BTC? Or ALGO? 

Investors tend to spin off non-performing assets much faster due to the buyer’s remorse that they felt as soon as they noticed the coin not moving up with the rest of the market.  The strong get stronger on successive pullbacks, and the weak get weaker. 

You get to decide which coins that you hold, (at least until Klaus Schwab tells us what to hold.) Choose wisely. Don’t buy a coin just because it’s cheap, that might be a self-fulfilling prophecy. 

Look for leadership and buy strength.