Take these assumption with a grain of salt. My plan is to buy more crypto's while they are on sale because I believe in option 2, and we are ATM at the anger stage. It would take at least a few months to see a bull-run if not years. Good luck with shorting the market my friends.
I agree with you that we are in anger stage, because most of people looking for general offender. Beside people in anger mode, there are many people which are already in depression.
Also I think that is really hard to trade anything right now, but with close stop losses it could make you money.