Are We Back? Or in the Eye of the Storm?

TL;DR

• After Monday’s crash, Bitcoin is up 8%, Ethereum is up 11%, and Solana is up a whopping 20% — but black swan events like this have a tendency to take weeks to recover from (not days).

Full Story

If you’ve never fallen out of a tree after your older cousin said he’d break your Nintendo 64 if you didn’t reach the top in the next 5 mins…

Lettuce explain how it works:

You rarely fall straight down.

Typically, you bounce between the branches, making flailing grabs before you’re met with the hard, unwelcoming embrace of the ground.

Same tends to go for black swan market crashes like the one we’re in now.

After Monday’s crash, Bitcoin is up 8%, Ethereum is up 11%, and Solana is up a whopping 20%.

That’s cool!

But have we hit a tree branch, or solid ground?

We’re not here to give a definitive answer, but a warning…

Cause right now you may have be experiencing some intense FOMO.

“If I had’ve bought in when everyone was panicking, I’d be way up rn! I don’t want to miss any more gains…time to take a 100x long.” — you, probably.

This is a great way to get w-r-e-c-k-e-d.

So before you ape in, remember:

Black swan events like this have a tendency to take weeks to recover (not days).

Check out all the tree branches we hit in 2020, before bottoming and grinding mostly sideways for months:

The takeaway:

If you can’t keep yourself from entering the market — the safest way to do so is by dollar cost averaging in (buy a little each week).

If the devil on your shoulder has a gun to your head, forcing you to take on leverage (borrow cash to buy more crypto), here’s how to soften downside risk:

• Low leverage

• Low position sizing

• Stop losses tighter than the skinny jeans you wore in middle school

Alright, that’s everything — be safe out there folks!