Day trading diaries – catching the last leg of the cryptocurrency bull market cycle

Cryptocurrency appears to run in four year cycles, based on the “Bitcoin Halving” which occurs every four years. Bitcoin still determines the overall trajectory of the entire market cycle and has done so for the past decade. Built into the Bitcoin code is an event occurring every four years which halves the amount of Bitcoin produced or mined per day. This appears to create cycles of increasing demand met by decreasing supply, thus pushing price higher with each cycle like clockwork.

Despite the cryptocurrency landscape being quite different every four years, with newer altcoins, projects and innovation occurring each time, still Bitcoin appears to rule the direction of the market overall. All the altcoins appear to follow the cyclic path of Bitcoin, whether bearish (downward) or bullish (upward) in price.

Now according to the past two Bitcoin cycles, one which peaked in late 2013 and another which peaked in December 2017, it appears that this current Bitcoin and altcoin cycle is about to reach its next peak, where price attains a new ATH (all time high) with a resounding blow-off top, only to crash massively by around 70% from that peak over the next two years or so.

This season’s cycle appears to be following the previous two quite closely and – based on those past cycles – we have a month left of bullish price action for Bitcoin and about two months left for the altcoins. Bitcoin peaked in price in December 2017, followed by the altcoins peaking in January 2018. This cycle will apparently repeat, although no one knows exactly just how closely. Each time is slightly different of course, even though the pattern is similar.

Having waited for four years for this particular moment, I’m really keen to catch the event and make the most of it. Timing is crucial here, and as an amateur, self-taught currency trader, I aim to capitalize on this month and next month’s last leg of this four year cycle. Therefore, despite being late to the party, I have recently diversified my portfolio investments to include numerous of the newer hot innovative cryptocurrency projects.

Bitcoin may make significant gains this month but the new altcoins will make bigger gains, so it pays to invest even my Bitcoin into some of these altcoin projects. The hot leading altcoin of the 2017 cycle was Ethereum. It still leads the altcoins as the number two coin in global market cap, after Bitcoin. However, this year we have still more newer innovations, like DeFi – or decentralized crypto-based financial lending facilities.

Add to that the real movers in the market which this season happen to be NFTs (non-fungible tokens) and the Metaverse. This is the future of the internet or the digital world. Next level technology has arrived and it involves gaming and living in cyberspace, now called the Metaverse. Add to this the innovations of virtual reality via goggles and you have the fully immersible next layer of existence, where gaming will lead everything else into that new reality.

As a result many of the altcoins that are leading this four year cycle’s bullish trend appear to be those projects that are facilitating the NFT tokenization of in-game assets, as well as those projects leading the technology of VR and Metaverse activities. So I have decided to invest my trading portfolio into Metaverse, gaming and NFT altcoins.

Already projects like Hive coin and others have facilitated the building of Dapps and games on their blockchain for some years now, though still remain less known, except for the Splinterlands game, which hopefully will give Hive some much needed exposure. Add to that the newer powerful movers and shakers, like Solana, which is dubbed the “Ethereum killer” because it can do all that ETH can do but faster. With many thousands of TPS (transactions per second) more than ETH, it is a game changer in the industry, climbing overnight to number four in global market cap, close behind ETH at number two.

Another hot project is Terra Luna, which has the first ever stable coin based not on fiat dollar backing but based on algorithmic backing. The LUNA token is a massive climber and it’s stable coin – UST – is set to become a better version of all the others who are constantly under scrutiny from regulators in government.

RUNE is a third popular choice. Add to that Polkadot, Chainlink and others, and you have some altcoins that have already shown massive growth so far this year during the earlier legs of the bull market. Now for this final leg, which includes the legendary blow-off top to stratospheric heights, there are other newer and revolutionary altcoins used by gaming and Metaverse projects which I have invested in.

I have about 12 other altcoins added to my portfolio, each with a small allocation to make up a diversified collection of altcoins likely to continue pumping in price as they did throughout the year already. Some are really new and may have just launched but are in the Metaverse or gaming department so are likely to make some good gains.

I missed out on some altcoins that have already pumped in value and I’m reluctant to FOMO in or “ape in” as the saying now goes. Projects like Render RNDR, which will actually render objects from real world to Metaverse, have already made such huge gains that I may have missed that rocket to the moon. Others like GALA, CEEK, Avalanch, etc, are in that category too.

I have added Axie to my portfolio, also Filecoin, Fantom, IOST, Celer, Raydium, Graph, Audius, Ethernity, Arweave, Ghost, Moonriver, NFT, Banqi and Flux, to mention most. There are one or two others, like the new dog meme or Doge mimics which I have added as outsiders, like Shiba Inu, Dogelon Mars, although missed the Shiba massive gains already so have gone in with only a light investment on Shiba, as an afterthought.
Now I won’t be day trading these but rather holding them for this last pump in the bull market cycle, over the next 60 days, if the past cycles are anything to go by. Of course, there are more institutional investors this time so the price trajectory may take longer to peak or may not dip as much as it used to. Who can say for sure? There are so many more variables now.

Some wise investors are actually suggesting that these altcoins should he in our long term “hodl” portfolio for the next four years, or until the peak of the next entire cycle. And they may well be correct, although I admit that I don’t have the diamond hands of a long term hodler. I hate to see yet another four year dip where my cryptocurrency bags lose so much value. I would prefer to sell as near to the top as I can and then ride out the next two years of bear market cycle in a stable coin like UST or in Bitcoin. There are many options. Let me know what your strategy is to maximize gains now during this last leg of this bull market as well as during the coming couple of bearish years ahead. I’m always keen to learn.

(image pixabay)

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