Are the Altcoins Going to Dip in Short Term?

[Juxoz]

Hi all,

First time posting here. I have a bit of alt-coins in my tax free account where I can trade regularly without incurring taxes (cannot distribute).

My investments across multiple alt-coins have yielded handsomely in the past 1+ year. My question is:

Should we expect a relatively big pull back in the short term (30%+) with the top 50 alt-coins in the next two months?

I know the market appears to be in a mid-way bull market rally, but after a relatively strong upward movement recently, I feel like there has to be a temporary drop for the market to breath. Given that I wouldn't be paying taxes on these sales, and crypto doesn't have a wash sale rule like equities, I wanted to grab my profit and wait for this hypothetical pull back before investing again for a bigger gain down the road when we might see 5x - 10x by the end of this year, or early next year.

My reasoning is, the whales have dumped their Bitcoin on the institutional investors/Trads in recent months as the Bitcoin ETFs have become available, but they are only seeing bag holders on the alt-coin side, and not seeing newcomers to buy alt-coins from them in order to eventually dump them on the newcomers.

My dilemma is, should I sell now, wait for the short-term pull back, go back in and sell in the long term, or is this a foolish sentiment?

UPDATE 1 (March 19): Well, f*ck me! My hunch was right, and I missed the opportunity. Diamond hand prevailed.
UPDATE 2 (March 20): Sold 50% of my alt-coin assets in that account which had ~140% profit margin. Left those tokens that had only appreciated 10%-15% for the next wave.

[JeromeTash]

A 30%+ retracement is very possible given that the market has been undergoing a strong uptrend movement over the past few days or weeks. It's only normal for it to correct before the next upward move, so it's all up to you to just sell the top and buy the dips or just keep the coins there and ride with whatever wave comes by until you are contented with taking profits.

My only advice is, know when to take profit and when to enter the market. It is not as easy as it looks.

[Frankolala]

Altcoins are not to be kept for a very long time, amd you should be careful with your dealings with these altcoins that you are holding, and don't invest more in altcoins.

The ball is in your court, and only you know how you have planned to be with these altcoins. If I were in your shoes, I will sell them of, because they are for short term, and like you said that you have made multiple profit. Don't you think it is time for you to take profit, because currently the correction in bitcoin price is ongoing, which is what controls the price movement of some of these altcoins. Sell them and invest in bitcoin, as there is a bright future ahead for bitcoin.

My only opinion, don't later regret and come crying that I told you what to do. Like I said, only you have the right to decide for yourself, because you will be responsible for your your own actions.

[Zaguru12]

My dilemma is, should I sell now, wait for the short-term pull back, go back in and sell in the long term, or is this a foolish sentiment?

During a pull back or market reversal or retracement, Altcoins most especially the shitcoins like memecoins or very low market cap coins becomes a thing of worry because their dumping might be the final fall for most of them or even if they should peak again some wouldn’t go back to where they were pumped back to. So the best way to trade Altcoins is certainly in a short terms. So if for example you have conviction about a certain like maybe the utility and use potential looks promising then the best thing is to take out your capital and then probably take out some partial of the profit and then at a later stage you will DCA this profit back into the market when the it falls more and should it raise again you might be having a large position size going back in.

Note that this partial removal is subjected to the the amount of pump the coin must have gone up before on. If it did at least a 6x then the above strategy might work fine but if it is less then just take out your capital only probably use little from it to later DCA back.

Never make a mistake of not taking profits of a pumping altcoin. The least regret will be taking profit early and not losing

[Mpamaegbu]

My reasoning is, the whales have dumped their Bitcoin on the institutional investors/Trads in recent months as the Bitcoin ETFs have become available, but they are only seeing bag holders on the alt-coin side, and not seeing newcomers to buy alt-coins from them in order to eventually dump them on the newcomers.

I don't know where your assumptions are coming from. No one is dumping Bitcoin on anyone. What we've seen so far in the market is expected. It's called market correction. Those who got in early will always find a way of taking profit, either partially or completely with an aim to buy back cheap. This action of theirs can trigger paper hands to panic and dump without knowing why others are dumping. Anyone who's dumping Bitcoin now is doing themselves a disservice because Bitcoin is yet to experience its halving which is the main thing that makes price to skyrocket.

My dilemma is, should I sell now, wait for the short-term pull back, go back in and sell in the long term, or is this a foolish sentiment?

While no one will serve as a financial adviser to you here, I guess my comment above answers your question.

[JeffBrad12]

had you made your mind few days ago you've already made the right call, the market does indeed corrected, even when bitcoin is rising up to $70k so many people are already predicting that there gonna be a pullback anyway you know its like tradition in crypto world whenever there's a bitcoin massive rally the correction always awaits at the end of the day.
therefore its kinda obvious.
but honestly this pullback just means more accumulation, if you successfully sold your altcoin at the peak, you can try to buy again to get massive profit since its obviously gonna climb up again anyway imagine a correction when the market sentiment is full of greed people are buying, thats why the pullback is not so massive.
but then again don't take this as a financial advice. but you should do analysation of your own.

[bitzizzix]

Actually, you already know how the market moves, especially in the current situation and the setback that occurs is only temporary or a healthy correction, because after this the market will bounce back and we are approaching the halving and Bitcoin is also experiencing a setback and everything is only temporary.
And the attitude we have to face now is, we have to remain calm and don't panic. It is best to take advantage of these pullback moments to accumulate your holdings and hold them for the long term until the market returns to bullish conditions and then sell them as you see fit.

[btc78]

The thing you have to remember with altcoins is that most of the time, when they dump they won’t go back up anymore. Maybe they will but they surely will not reach their ath or let alone surpass it. Maybe some will so it depends on which altcoin you are holding.

But I think your plan is good. It’s better to take as much profit as you can when you can. I don’t know about long-term investment though as like I said altcoins are very volatile and more often than not only reaches ath once and never again. But if you truly think this is a coin worthy of long-term investment then do what you feel is right.

[Bureau]

Should we expect a relatively big pull back in the short term (30%+) with the top 50 alt-coins in the next two months?

You have already done good research on the market and what you are expecting is to happen. I can see it has already started and it will continue till the halving is completed. The demand is only for Bitcoin and not altcoins as you said only those who have their bags full or those who are accumulating are trading in altcoins. There is less demand for altcoins it will be over if the spot ETF of Ethereum gets approved. Most of us doubt that it will get approved the first time, it will take some time and then we will see a rally in altcoins with the expectation that other altcoin ETFs might come into existence. Currently, the market is going through a correction but I do not think it will go down as you are expecting.

[nelson4lov]

Given the fact that funding rates across the markets have been positive for a long time, I'm also of the opinion that we might see a possible 20-40% dip in the market soon. As with every bitcoin halving event leading to a full-blown bull run, there is usually some major pullbacks in -between. IIRC, we had a major dump around $46K price that halted at $38K price for Bitcoin and altcoins in a devastating collapse. So there's still a possibility of another one. I'm not an expert in TA so that's my personal bias because there cannot be only green candles.

In the meantime, I want to share a recent experience: I tried timing the current pullback and ended up selling my bnb at $498 which I thought was the local top before a short pullback only to learn in less than 24hrs that I sold it for cheap (when you consider 498 vs 636).

If you feel like the market is near the top, you should take a bit of profit off the market from time to time.

[Troytech]

Looking at the market you would notice a  resistance since bitcoin crossed its ATH and many other altcoins like ETH also faced that resistance.

The truth is we alm should be expecting a pre halving dip even if not much a a serious consolidation that would retrace around 20% backward, then we can start having major price increase.

[Kelward]

My dilemma is, should I sell now, wait for the short-term pull back, go back in and sell in the long term, or is this a foolish sentiment?

Never make a mistake of not taking profits of a pumping altcoin. The least regret will be taking profit early and not losing

Taking profits when an altcoin is pumping would be a smart move for any investor, because you don't know when the next dip will happen and whether the project will recover and pump again. Bitcoin price movement controls altcoins, so as we're seeing a correction now, it'll affect the price of most altcoins, let the OP decide the altcoins to sale in order to maximize profit, but if I were him and I have a top altcoin like Ethereum, which is as reputable as Bitcoin, I'll not panic and sale it now.

[Volimack]

If you look at the market you will understand that not all altcoins are the same. There are many good altcoins that can provide good longterm growth. It will be easy to prevent all currencies from sinking if you choose the right currency. The market is making new ATHs with the price of bitcoin rising and Eth and BNB performing well.

[jrrsparkles]

I am sure whether you took the call already or not, if you did then you did great job but for the last 48 hours or so the dip happened and I don't think there will be further dip in it so if you didn't sell then just hold and wait for the bounce back, surely in the next couple of weeks there will be surge again and that's the optimal time to dump and cash out your profit or if you are willing to take further risk then wait for few months and it's high chances that coins can atleast grow 50 to 100% before the end of this year.

[husencoe]

I really agree with the results of your analysis.  Indeed bitcoin has risen as high as possible and there will definitely be a correction.  But I think this correction is not significant.  We still see that the positive trend is still very high.  Especially with the Bitcoin halving plan in the near future and the ETF on ETH, this will again be the best moment in the crypto journey and big bullish will occur again.  I think your idea is very good to sell it now partly to keep the profit, and buy it again at a lower price.  However, you have to be careful and really do the analysis to look for other entry and exit points on your curve. All the best for you.

[Bushdark]

I am sure whether you took the call already or not, if you did then you did great job but for the last 48 hours or so the dip happened and I don't think there will be further dip in it so if you didn't sell then just hold and wait for the bounce back, surely in the next couple of weeks there will be surge again and that's the optimal time to dump and cash out your profit or if you are willing to take further risk then wait for few months and it's high chances that coins can atleast grow 50 to 100% before the end of this year.

Just like the way the price of Bitcoin has been ranging, we shouldn't be surprised that the same is happening to altcoins too and there are altcoins that are short right now because of the ranging movement of the price of Bitcoin. We can make money from holding altcoins just like Bitcoin but just have to buy and hold the giod ones in the market that have good volatility and the price are moving well.
This is the only way we could make money from holding altcoins for us to follow the bull trend.

[kentrolla]

It all depends on how Bitcoin performs if Bitcoin goes down then Altcoin goes down even further and only when Bitcoin starts making come back then Altcoin will make comeback that too when Bitcoin increases and trn stay on same range for a while. We have seen in the past whenever there are dump in value of Bitcoin the Altcoins bleed even further and same thing is happening now as well, I would say we shouldn't by it as of now af rather eit for a while, I am holding Altcoins very few though but I won't buy any further and if market continuos the downward trend then I would convert it into USDT with proper buy back strategy.

[johnsaributua]

When it comes to prices that freefall or pump hard, there is certainly significant activity by the community that uses the crypto curency (altcoin). For me you are already quite smart and have techniques for your portfolio in the wallet. I'm not strong enough to buy a lot of coins, especially my capital is limited, even so I still make a profit from what I trade, I only keep 4-10 altcoins.

If there is a correction fault, it is natural, although there are those who are satisfied (people who profit) and there is a decline . However, on certain altcoins I am sure that they will return to these high prices, and not infrequently I add ammunition from my daily trading.

Q1 this year I think is very encouraging for all crypto activists, including if you want to join the ride you can find the ideal point for the coins that the whales have, the potential for ethreum and bitcoin will still continue even better. DYOR with your asset management.

[Dailyscript]

If you look at the market you will understand that not all altcoins are the same. There are many good altcoins that can provide good longterm growth. It will be easy to prevent all currencies from sinking if you choose the right currency. The market is making new ATHs with the price of bitcoin rising and Eth and BNB performing well.

Very brilliant answer. I agree that not all altcoins are the same. There are several coins and tokens that fall under the category of altcoins, and you cannot say that all of them act and behave the same way. There are altcoins that will dip even if there is a bull run, while some will pump when there is a bear season.

Most of these altcoins are controlled by their owners or developers, sometimes traders and investors. Unlike bitcoin, which has decentralization, not all altcoins are decentralized. So there should be no conclusion that altcoins will dip in the short term OP.

[Argoo]

Q1 this year I think is very encouraging for all crypto activists, including if you want to join the ride you can find the ideal point for the coins that the whales have, the potential for ethreum and bitcoin will still continue even better. DYOR with your asset management.

The cryptocurrency market has been growing since October last year, that is, almost five months without any significant correction. But without correction, further normal price growth is impossible. We are already seeing a decent correction. So, if Bitcoin recently rose to $73,477, now it has fallen to $63,152. Ethereum rose to $4,193, but now its price is $3,268.
Considering that there are still many interesting positive developments ahead in this market, there is no doubt that this year and next we will see significantly greater growth than what we have recently seen. Therefore, for those who have not yet bought a cryptocurrency with potential for growth, there is still a good chance to buy. At the same time, now is no longer a good time to sell our coins. But everything will depend on the depth of the correction that we see. It’s unlikely that anyone here can suggest the right solution.