Miles Deutscher's Plan for Navigating the Next Crypto Cycle: BTC and Altcoins

Earlier today, crypto analyst Miles Deutscher weighed in on the cryptocurrency market in a post on social media platform X (formerly known as Twitter). Deutscher presented a comprehensive strategy for approaching the next cycle in the volatile crypto market, placing emphasis on Bitcoin (BTC) and Ethereum (ETH), as well as other quality altcoins.

Deutscher noted that many people assume that a dominant Bitcoin will hamper the growth of altcoins. Contrary to this notion, he argued that a strong Bitcoin is actually beneficial for the overall crypto market, primarily because it pulls in liquidity.

Outlining his specific investment approach, Deutscher revealed that he uses a “top-down” strategy. This entails focusing primarily on what he termed as “pillars” of the crypto world—Bitcoin and Ethereum. He expressed his continuous commitment to growing his holdings in these two digital assets by employing an “adaptive Dollar Cost Averaging” (DCA) strategy. The adaptive DCA approach is one where he is more aggressive in buying during market downturns while taking profits when there are steep price increases. The ultimate aim is to build robust long-term positions in these assets.

When it comes to other alternative coins or “alts,” Deutscher advised investors to pay attention to narratives that are currently relevant, such as those connected to the Bitcoin ecosystem or Real World Assets (RWAs). He cautioned against investing in trends that have lost momentum, like Layer 1 solutions (L1s). Despite this, he noted that he’s open to including other altcoins in his portfolio, even if they are not currently in vogue.

In terms of capital allocation, Deutscher clarified that he isn’t in a hurry to invest heavily in low to mid-cap cryptocurrencies. He’s comfortable making smaller investments using discretionary income, revealing that he’s holding about 50% of his portfolio in cash, which he is deploying gradually, especially on days when the market is notably down.

Deutscher also mentioned the utility of Technical Analysis (TA) in helping him decide which altcoins to add to his portfolio. He warned investors to be cautious when considering coins that are consistently showing lower lows on their charts. For such assets, he advised waiting for a High Time Frame (HTF) reversal or being prepared for the long haul if one decides to invest.

Closing his post, Deutscher reiterated that the current market phase is one of accumulation. The primary goal for investors should be to build their positions. He underscored that the route an individual takes to achieve this goal will depend on their unique investment style and risk tolerance.

Featured Image via Midjourney

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