“LAST CHANCE” Before Crypto Explodes Higher?

Hey everyone,
 

I’m still on vacation and should be back by Monday. I have been intentional about spending time with God and my family so I haven’t been paying close attention to news that can affect the crypto markets. I’ll give a brief analysis for this week’s update.
 

Ecclesiastes 1:9 – What has been is what will be, and what has been done is what will be done, and there is nothing new under the sun.
 

Markets have cycles because people repeat the same things over and over again. Ralph Elliott was a man who saw that markets move in repeated patterns which he called waves. He believed the market was influenced by collective human psychology. This is called Elliott Waves and many successful traders use this form of analysis.
 

A basic market cycle looks like this:
 

Waves 1-5 and A-C can be broken down into smaller waves. This is what it can look like if you broke down each major wave:
 

Using Elliott waves with crypto is not always easy to identify where you are at because the volatility is so great at times. It becomes clearer in hindsight.
 

This is where I think it’s heading next. (The purple wave B and C are not exact locations of where they could end up.)
 

It appears to me that we are headed for a “blow-off top” followed by a crash, followed by another soar. However, the blow-off top can be stopped dead in it’s tracks with any major risks affecting the markets.
 

Why do I think we are headed for a blow-off top?

 
The first reason is the retail crowd has an appetite for risk.
 

In Wave 5 or B, if there is market mania, rampant speculation will cause these blow-off tops. People become greedy and if trades become winners and everyone sees green in their portfolios, greed can cause them to pile in even more. Do we have evidence of speculation?
 

This was an article posted here today – https://www.ainvest.com/news/resurgence-meme-stocks-retail-traders-redefine-short-squeeze-dynamics-post-april-2025-market-rebound-2507/
 

Meme stocks are surging again, signaling a strong speculative appetite among retail investors. This behavior typically shows up during periods of overconfidence, often seen in wave 5 or wave B. As overconfidence drives markets higher, it pulls in more capital as investors fear missing out on rapid profits. For the fastest gains, crypto during an alt-season stands out, with altcoins frequently delivering daily surges of 30-300% for weeks.

The second reason why I think the blow-off top will occur is that crypto legislation is being passed through Congress. This legitimizes a once fringe portion of investments (crypto) and makes it mainstream. This will encourage companies to take a serious look at crypto to adopt it and/or build crypto treasuries or be left behind. This is happening while the retail appetite for speculative risk is occurring.
 

If the Fed also drops interest rates from Jerome Powell capitulating or getting fired from the Fed, this will be ROCKET fuel for crypto but will unleash inflation at the same time.
 

With all that said, the season we are in now could be the last chance to get crazy high returns in crypto. Once institutional money pours in on a wide-spread scale, there will still be opportunities but I don’t think it’ll be as good as the opportunities are now.
 

Our Positions

 
Over the last week, we’ve had the alt coins go up with a steep drop today.
 

Be prepared for steep pullbacks as people take profits from their gains. It’s a normal part of the market as we are waiting patiently for the major move higher. The market is still moving up overall and this is par for the course.
 

I’ve shared a few times to mentally get ready for volatility and stay prayed up to exercise self-control. Have your plan and execute it so you don’t get shaken out or FOMO in from emotion.
 

Blessings all!

Ron
 

This information does not constitute as financial advice but are merely my own opinions. Please due your own due diligence before investing in cryptocurrency.