We pick out 5 cryptocurrencies to buy in 2023, preferably on a dip, for the long term. That’s because the reversals on these charts are long term bullish. The longer the consolidation goes on, the stronger the bullish reversal. This article was sent to premium members in our crypto investing research service. The names of the 5 cryptocurrencies to buy are removed in this public blog post, the symbols are obviously available for premium members. We also feature XRP in this article, because it no secret that we are XRP fans. The point is that a few of the cryptocurrencies in this post will be future multi-baggers, similar to XRP prior to its big run in 2017.
In our premium crypto service, we always start with an analysis of leading indicators BTC and ETH. We deviate from this format, in this alert, because we want to share out long term findings. We think big picture in this alert.
We look at the crypto market through the lens of the 7 segments which we defined in our watchlist with 36 tokens (authentication required). That’s helping us understand segment-based momentum (or lack thereof). We also check higher timeframes, like the weekly charts, and scroll through all charts without annotations. All this is meant to help us spot opportunities and trends, as they arise.
Contrarian indicator flashes ‘buy for the long term’
Big picture, we see awesome setups. We are really EXCITED. We know this statement conflicts with how it FEELS to many crypto investors RIGHT NOW. As seasoned chartists, we look at future trends by analyzing the current setups. This explains why we may be super excited at a time when some individual investors may not feel any excitement at all. Our viewpoint is based on what we see happening 6 to 18 months out, based on the current state of the charts, while many investors are guided by the current state of their positions (unrealized profit or loss).
Moreover, and this is fundamental wisdom for any investor in any region involved in any market, it is a quiet market that is the basis for strong, future trends.
This is absolutely crucial. It also explains the asymmetric principles of success which is the essence of Tsaklanos his 1/99 Investing Principles.
When a market is red hot, it is way too late to enter. Unfortunately, +90% of investors enter a market when it is way too late. This brings up the question: when is the ideal moment to enter a market? Logically, it is way before a market gets red hot. In other words, a market (any market) offers the best long term entries when it is quiet.
As quiet as the crypto market is today.
Or as quiet as the silver market is today.
Or as quiet as GameStop was before it staged an insane rally, 2.5 years ago. Or as quiet as Tesla was back in 2019, right before a 10-fold rise started. Or as quiet as Bitcoin was, back in October of 2020, right before it went up 6-fold.
It is always the same dynamic, over and over again, for decades and centuries: when a market is quiet, there is no interest by the masses but only by an absolutely minority. That small group of wise investors, characterized by their patience and wisdom, get great entries. In turn, they give time to the market to do its thing. When it appears that their assessment is right, they can enjoy the bull run, without stress, because they had a great entry. As the market becomes hot over time, they start taking profits until the ultimate contrarian bearish topping signal is there: the market becomes so hot that financial media features it on their covers. That’s roughly when 80% of market participants enter a market, seemingly unaware that they fall in the ‘Johnny come late to the party’ segment, ready to be punched in the face.
Long term bullish reversals justify some cryptocurrencies are a ‘buy’ for the long term
Right now, there is no interest in crypto by the masses. This implies that we are in a time window that is absolutely great to increase allocations (existing crypto investors) or start initiating positions (new investors).
We are not necessarily saying that you have to look up the 5 cryptocurrencies to buy in 2023, right now.
What we refer to, when we say “we are in a time window that is absolutely great to increase allocations,” is a time window of several months, arguably even a few quarters.
We do know that our audience does understand all this very well. Coincidentally, we looked up the average lifetime of our premium crypto members. We are delighted to see how loyal our core group of followers is. Most of you are with us since the period 2017-2020. This implies you have gone through one or two bullish crypto cycles, you have hit at least one or a few multi-baggers. You know exactly what we are talking about, because you have witnessed it, you have experienced it.
With this in mind, let’s look at the charts to support the points we are trying to make.
Before looking at 5 crypto charts, most of them from our 36 tokens watchlist, we want to highlight the specific pattern we keep on seeing on our charts: LONG TERM BULLISH REVERSALS.
Again, the fact that they are BULLISH suggests that the outcome is to the upside, not necessarily that a bull run is ongoing at this very point in time. Remember, chartists look at the current state to understand what is going to happen in 6 to 18 months from now.
Long term bullish reversals: two illustrations
XRP, on its weekly timeframe, is the best imaginable example of a bullish reversal. It’s perfect, really perfect. A bullish reversal which looks like a W but with a higher low in the right part of its W structure. Absolutely beautiful, fabulous… which implies that it’s powerful. As an XRP holder, it certainly may feel boring, there is no excitement for most holders right now. But the point is that XRP 10 USD, which our long-standing target, will be hit at a certain point in time based on the current chart structure. Its previous ATH at 3 USD will be crushed, sooner or later, as explained in XRP: The Most Beautiful Long Term Crypto Chart Of 2023.
Similarly, Maker, on its weekly timeframe, has a similar pattern, although distributed in a different way over time. Maker is not on our watchlist, and that’s fine (we are looking for structure, we don’t chase each and every token out there).
Let’s look for similar patterns, but on lower timeframes.
5 cryptocurrencies to ‘buy’ in 2023 for the long term
In this section, we features the charts of 5 cryptocurrencies. Note that we had to remove the symbol, in order to respect our premium members. Anyone can instantly access the details of the 5 cryptocurrencies featured in this article, it’ is available in the research area in the alert ‘Beautiful Long Term Reversals For Long Term Crypto Portfolios’ after signing up here.
One of the tokens in the DeFi segment, featured in our latest watchlist update. It is trying to break out. However, the much more important ‘event’ on this chart is the chart structure. This is such a bullish pattern, irrespective of when exactly it will break out. The breakout might happen next week, in September or October, or even later. The point is this: as long as its 2022 lows are respected, its chart structure is so bullish and powerful, that it really doesn’t matter when it breaks out.
Between now and the breakout confirmation, regular investors won’t feel excited because, in their eyes, the token “is not performing” (not our words, but their way of thinking). What matters is that the structure of this chart suggests that this token will trade much, much higher in the next 6 to 18 months! We can see it on the chart, we can sense the energy, we feel how it’s building up. It’s beautiful… provided the 2022 lows hold.
The symbol can be found in this article in the restricted area Beautiful Long Term Reversals For Long Term Crypto Portfolios. This article is available for all premium members, get instant access.
Similarly, the next token token has a lot of similarities with the one above. Everything we said above applies to this one as well, but the 2022 lows must hold.
This next one, among our top picks for the long term, is trendless in a W-reversal pattern. Even if it drops another 30% it will be long term super bullish.
The next one was introduced in our latest watchlist update, in July, has an outspoken W-structure. In the next 6 to 18 months, somewhere, certainly not later than 24 months from now, it will be testing its previous highs, a 6-fold rise, for sure, provided the 2022 lows will hold.
The next token is among our top favorites from a utility potential perspective, it certainly has a gorgeous setup. All the points we made above, also apply to the next token, provided it respects its 2022 lows.
We know that the vast majority of our members understand the points we are trying to make, because they are with us since a very long time which suggests that they have a long term viewpoint.
As said countless times, since we started running this service back in 2017, the crypto market comes with immense potential but only for those that look at it long term. If you have a 10-year timeframe, the returns can be insane.
Crypto comes across as a get-rich-quickly type of market, but the exact opposite is true!
The symbols of all 5 tokens featured in this article can be found in this article in the restricted area Beautiful Long Term Reversals For Long Term Crypto Portfolios. It is available for all premium members, get instant access.