There are many, many coins that reached new highs in December.
Many others in January, and right now we can learn something about these coins.
Once the top is reached on a bull market, a new all time high won’t be achieved a few days, weeks or months later… It takes time, specially if the market isn’t bullish anymore.
So, as you saw all those coins that shot up on January, then started to go down and you see them breaking out every now and then, but all the time they just keep on going down, this is true for all coins.
Before any of these coins have the strength to challenge its all time high and finally break it, it can take a very long period of accumulation. It can be 3-4 months as it can be 6-8 months.
That is, all this time going down, or sideways, before it can go up strong again.
So when you look at the ADA chart, TRX, XVG, and basically all of the coins you saw going strong in December and early January, just notice just how the can breakout over and over after the bull run is over, but they remain incredibly far from breaking their all time high again.
But, as these coins consolidate and a new period of accumulation starts, they will be all primed in a few months, to once again reach the stars.
Do not waste your time chasing for a trade on a coin that just reached its all time high few weeks ago and now it is coming down strong.
Here is just a quick example, look at ADA chart once more: https://www.tradingview.com/x/OTPuVDEt/
It needs to go down, then go sideways for a while (accumulation) and then one last dip (shaking out more weak hands) and finally a new run starts.
The new run, bull run (uptrend), will be the same as now but reverse. You will see the price going down sometimes, breaking down all of a sudden, but after a few days, it goes back up.
Because the overall trend is up. This is the “bull” market, right now we are still in “bear” mode. Whatever opportunities we get now are risky by default. So we wait…
This information is relevant to the Altcoins market, and all of our trades.