The recent meme token season has brought us colossal profits, but at this stage, I’m stepping back from this category, closing the remaining positions. Why? Despite the allure, endless growth is unsustainable without liquidity, which is generated through corrections. Additionally, meme tokens are beginning to show bearish patterns across all timeframes.
I also want to highlight that historically, the meme coin season has often been a precursor to an imminent correction in BTC and the broader market, and history has a way of repeating itself.
It’s evident that Bitcoin is overheated. Interestingly, on Binance (spot), the price momentarily hit exactly $65,555 — another sign that manipulators enjoy leaving such precise figures on the charts.
From a logical standpoint, a potential local correction also seems appropriate. The market is currently experiencing extreme greed (Fear and Greed Index above 80, see screenshot): driven by FOMO, the crowd is long on everything they see (including meme tokens at their highs, hoping to sell even higher) — perhaps, this is the perfect moment to bring everyone back to reality and gather the necessary liquidity from below.
Friends, as you know, I’m incredibly bullish in the medium-to-long term and anticipate the continuation of the bullish trend in the crypto market. However, there are currently many signals pointing towards a possible local (I emphasize) correction, which would ultimately benefit the market.