TOTAL2: When I’ll Deploy My Stables Back Into the Market
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Timing the market perfectly is impossible, but using TOTAL2 and RSI, we can identify high-probability opportunities. Here’s my approach for the coming years.
I bought during the last dip, but my exposure is still less than what I sold before the crash. Here’s why.
Key Signals for Tops & Bottoms
RSI Patterns: - Market Tops: Weekly RSI above 85 signals overheated conditions but does not always lead to an immediate reversal. - Market Bottoms: Weekly RSI near 30 has historically marked strong accumulation zones. - In the last seven years, RSI hit 30 only twice—2018 and 2022. I expect this level again within the next 24 months.
My plan: I will deploy capital heavily when RSI approaches 30 again, securing long-term positions.
TOTAL 2 Scenarios: What Comes Next?
Scenario 1: Price Discovery - If TOTAL 2 flips 2021 highs, ETH and altcoins will likely reach new all-time highs. - Weekly RSI could exceed 85, potentially reaching 95, indicating extreme overbought conditions. - I will take profits aggressively at this stage while also using a DCA strategy, as precise timing is never certain.
Scenario 2: Lower Highs Persist - If RSI fails to reach overbought levels, this cycle may be weaker than expected. - The 50 RSI zone is critical—if it aligns with oversold conditions on daily or 3-day RSI, it may present a selective buying opportunity. - I have already taken partial profits since November 2024 to manage risk in case of this scenario.
Scenario 3: RSI Drop to 30 - This scenario appears likely within the next 24 months and would mark a bear market low. - If BTC, ETH, and TOTAL 2 all hit 30 RSI, I will fully deploy stables with high conviction, considering it a generational buying opportunity.
Final Thoughts Summary: I will increase exposure once RSI confirms strong long-term buy zones, but I am managing risk in the meantime.
What’s your take? Do you expect RSI to revisit 30?
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.