How to plan for a BitCoin correction?!

The BitCoin correction has been under discussion for a long time and now that BitCoin 10k USD is close I think we are due a correction. 10k is a major psycological barrier and the consensus on BitCoin seems to be swinging towards being almost a little bit too high valued. People are avoiding investing right now since a lot are expecting a correction.

My thoughts and strategies

BitCoin 10k

10k USD is a big psycological barrier for BTC and from past experiences such barriers are often hard to break and in turn causes corrections in the asset price. BTC is in a tightening parablic rise (which we know are never sustainable) and will, most likely, have a correction in the near future.

Questions and considerations

1. If a correction occur, how low will BTC go and what is a reasonable stablized level?
2. What will happen (in general) with the ALTs if a BTC correction occur?
3. What happens if BTC breaks 10k USD?
4. How will the ALTs be affected if BTC breaks 10k?

If a correction occur, how low will BTC go and what is a reasonable stablized level?

BTC has had a parabolic rise and the higher and faster an asset goes the larger the correction will be. Earlier corrections have been in the 30-40% range and I believe an even larger correction is to wait. One of the levels I will keep my eye on is 4900$ which is an earlier resistance level around the 50% mark of the current price.

There are other resistance levels higher up (such as 7700$) but I think the downward movement will pretty much just "blow through" these levels before looking for resistance. My plan will be to add a buy order around 4900$ and to be sure I will even add another at 3000$ just to be sure. I don't think it is likely BTC will go all the way down to 3000$ but I will be happy to pick up some BTC at this level.

What will happen (in general) with the ALTs if a BTC correction occur?

I think this depends on how the correction occur. If we get a very sudden drop and FUD floods the market then panic selling will occur and the ALTs will not come out unscathed. They might rise in comparison to BTC but overall USD value will probably go down. If the correction in BitCoin instead becomes a more gradual process (without causing panic in the market) and instead enters a "Bear Market", then I think investors will instead see the oppurtunity of moving over to the most "popular" ALTs, such as: Neo, OMG, CVC, ARK, LTC, ETH, XRP to mention a few. I will keep an eye on the shape of the correction and make my decision based on this mindset.

What happens if BTC breaks 10k USD?

I think it is entirely possible for BTC to break above 10k and I would say we have two scenarios in this situation:

• FOMO will occur and the earlier fear of a correction will temporarily disappear. I think then BTC will enter the final stage of parabolic rise and might even quickly go up to as high as 20k. But here the risk of investing will be very high. The best would be if BTC has a slight rise to 11-12k and then dips down and finds resistance at 10k.
• We have a false breakout to just over 10k (11k or so) that induces some people to buy but the FUD remains in the amrket and we have a sharp sell-off to under 10k again. I think this would be an indication that the correction is under way and we either enter a longer term Bear Market or we will get a very fast drop in BTC price as people "flee" and await lower buy in levels.

How will the ALTs be affected if BTC breaks 10k?

This is much harder to predict since again we must consider different scenarios and the conclusions could vary depending on the ALT:

• If BTC breaks 10k and experience large FOMO then people will flock to BTC and "ride the wave". Some ALTs might go against the trend but I think most ALTs would dip in comparison towards BTC.
• If BTC stabilizes around 10k then ALTs might be a place to look for higher gains and then it might be some of the "unknown ALTs" that people look towards.
• If BTC has a false breakout and panic-selling starts we will have the same situation as I describe above with the larger, faster correction and in the Bear Market case I also think it will be descibed as above with people moving towards popular ALTs.

Final Words

I know this has been a long post but I hope some take the time to read it and share their thoughts and plans where you explain your reasoning and ask questions so that we can get a discussion going on this subject.

If you want to know what ALTs I am going to invest in you can check out my post on Wallet Distribution. Feel free to share which ALTs you are interested in, together with your reasoning, but I would prefer if you would more focus on your thoughts on overall movements and market sentiment in the comments.