This Correction Has Only Just Begun!

Pre-Halving Correction
It’s a bull market, right? Just because we are in a bull market does not mean that corrections will only last a couple of days, and then it’s back to business. I think most investors are open to the idea of momentary corrections. However, a downturn that lasts weeks, and even months is something that most investors are quite literally, opposed to. I can tell by the responses I received, regarding my recent warning regarding a correction.
For many, the correction is over… they survived, and now it’s back to business. We have seen a relief rally on the LTF. However, a relief rally on the HTF is likely to trick the majority of retail investors. Essentially, this means that this market could bounce as high as $44K, and even $46K before correcting, yet again. As I have said some time ago, on many occasions…

I expect to close the year (2023) at approximately $40K, before rallying to approximately $50K… and only then experiencing a significant correction.

This is why I suggested buying the dip to $50K… and only then considering the idea of harvesting some profits to buy back lower. What most readers failed to understand regarding my recent warning of a correction on Thursday is that this correction has just begun. This is the emotional aspect, once again, commanding the control of emotional investors. Why do I say that these investors are emotional?
Find Some Solid Ground
If you are not relying on a thorough understanding, as well as a thesis backed by technical analysis and macroeconomics you have nothing else to stand/rely on besides your desires. My thoughts are, if investors are so blind early on in the game, how removed will they be when euphoria hits later this year, or in 2025? My approach until after the halving is to sell relief rallies and local tops.
This is why I have, once again, begun trading long-term assets, to increase these holdings, and to ultimately be out of the market when the corrections hit. I did give a fair warning regarding the recent correction. However, don’t expect this to be a norm. It’s time to dismantle the training wheels. Much has been discussed and imparted over the years, and it’s time for investors to begin applying these principles.
What I will say is to begin looking for signs of a new local top. Hopefully, at levels above $42K. However, that’s not guaranteed. It’s the most probable scenario, as it would bait and entrap the majority of market participants. Many investors rely on their expectations, as opposed to allowing the market to communicate its intention. The market is a force no investor, or even institution, can stand against.
It will do what it will do. Your only hope is to accept its decisions and then position yourself accordingly. This requires “dethroning” the emotional dynamic. Unfortunately, many investors already believe themselves to be here, and yet are still to take the first step. That being said, the market is about to dish out a few diplomas. These will come at a cost. For some, it will simply be an expense void of reward.
Those of us who have been trading for decades can’t help but smile at the smug arrogance of newcomers. The market humbled all of us, and continues to do so… maybe not as much as others. However, maintaining a healthy respect for the market helps to keep us in check. The most successful traders have stories of loss, failure, and pain, and yet newcomers believe they are exempt. I am not flipping bearish like some out-of-touch influencers.

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Final Thoughts
What I am saying is that there is more to come before this correction is over, and we can look to new yearly highs. These are of course my views, and every investor needs to conduct their research, and then navigate their way forward. Essentially, taking into consideration the opinions of others helps to remain objective, and avoid creating our little echo chamber. Anyway, that’s it for this one. See you next time!

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Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.