I hear a lot that crypto is in the bubble. But how big is the bubble? And what will be the consequences after it pops? I am curious because I invest only in alts which seem to have a decent technical background and good idea. I understand that shitcoins that are pumped will be dumped. But what about good coins?
But how big is the bubble? - No one knows, though as they say "History doesn't repeat, but it does rhyme". I think that each bubble will get smaller and smaller than the last one, simply because it takes more money with each pump to get it to higher and higher highs. If I had to guess, I'd say we are targeting 5k / btc, but don't listen to that at all. Listen to price & volume. You will know when it's time to sell, btc will spike a kagillion dollars over night, everyone will be talking about "1m for 1 btc" and how it's "going to the moon", you will see price action flatten out as buyers & sellers fight for dominance as well as wild volume fluctuations as people buy and sell tons of coins due to being unsure of the next move. It's very true that the exit is way more important than the entry.
I'm seeing alot of these symptoms right now tbh, bitcoin has risen over $400 in 2 days, people are talking about 1m per bitcoin and how it's going to the moon, all that's left if the inevitable flat trade w/ heavy volume and then the next correction. This pattern repeats in both short term and long term (a bunch of small fractal patterns add up to 1 medium fractal pattern, etc). I do not believe this correction will be "the big one", I have confidence we are just getting started. Expect the next correction to move 50% though lol, it will be a doosey. I already am prepared and know I will be holding through it.
what will be the consequences after it pops? - Prices will go back down, settling more than likely (unless there's some catalyst) higher than it's previous bottom price of 250-300. Alts will follow the same path. (when prices do finally settle, that's the best time to buy and hold for the next rise)
Remember, in 2013, this exact same thing happened. First btc started rising, then ltc took off, then everyone got all excited and started buying EVERYTHING on btc-e lol. Novacoin was like $50 a piece and it's literally a scam coin. Alot of coins took off because of China, i distinctly remember a youtube video about a guy that went "all in on primecoin" right at the top and was saying on video "I'm going to be a primecoin millionaire", I then proceeded to watch primecoin crash for years after that haha. Don't get caught up in the exhuberence. Protect your profits, you'll thank us later.
Good coins/Bad coins all fell with eachother, much like how now the rising tide of Bitcoin has caused nearly every altcoin to rise in value. It rises with the rising tide, and falls with a falling tide, in unison.
You definitely don't want to hold through the crash lol, you'd be better off selling and buying back when it drops.