Bull Trap? Or Should We Chase the Trend?

Hello investors,

Bitcoin has had a massive pump over the past few days, and people are getting greedy again. For weeks, the market stayed quiet, and retail interest was low. Now excitement is back, and people are ready to take bigger risks than they were just two weeks ago.

Now, here’s something to think about: for weeks, you had the chance to dollar-cost average into Bitcoin and altcoins while the market traded below the 200-week EMA. But you were fearful then. So why are you suddenly eager to buy now, as Bitcoin approaches a potential major take-profit target? See the yellow arrow on the chart below.

If you bought the July low between $58,000 and $60,000 with us and positioned for a deeper correction that hasn’t arrived yet, stay calm and hold your positions. Rather than panic-buying at this point, be willing to lock in profits as BTC approaches the $80,000–$82,000 supply zone. However, if you’re willing to hold through the next potential correction, you have nothing to worry about either way.

Before you say I don’t care about profit-taking right now, let me ask: if you weren’t planning to take partial profits on this rally, what exactly was the point of celebrating it? Look, I’m not here to break bad news, but I think it’s premature to call the cycle’s bottom at this point. We could see a pullback at the $82k zone. So, watch out!

You may be asking, Jonas…

Honestly, I’m cautious here because this entire move could turn into a classic bull trap. Yes, this rally could tempt you to deploy sidelined capital back into the market before the reversal. This is why I wouldn’t recommend deploying fresh capital at this level.

Personally, I’m maintaining my bearish thesis through the end of the year. I expect the market to produce another wave of massive correction once this current phase is exhausted. And if that correction never comes? Then we have years ahead of us to ride the bull run and secure better entries on confirmation.

The problem is that most investors are impatient. They love chasing trends, and that impatience is exactly what causes people to buy tops instead of bottoms.

But you are different. You are a long-term investor. And that identity is what allows you to stay calm without it shaking your entire strategy. Could we be wrong about our cycle thesis? Maybe, maybe not. Time will tell. But don’t chase the trend at a potential resistance zone.

»»» Before you continue: If you’re still asking “When is the best time to buy Bitcoin?” click here to claim the Golden Buy Zone Blueprint, which teaches the accumulation framework this entire newsletter is built around.

Bitcoin is currently soaring, and it can feel like this move is unstoppable. But you see, we’ve been here before. See the chart below.