Time Sensitive! How to Avoid Getting Rekt to Zero

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Hello and Welcome back to the Wealth Vault. Crypto has been in absolute chaos over the past 24 hours, with massive liquidations shaking up the market. If you're wondering whether we're still in a bull run and what comes next, you're not alone.

In today’s edition, I’m sharing my full strategy for February 2025: how to survive these conditions, position yourself wisely, and make sure your portfolio doesn’t bleed to zero.

Here’s everything we’ll discuss:

💎Bitcoin Market Update

💎Altcoin Index

💎State of the Altcoin Market

💎 How to Navigate the Current Market

💎Altcoins to Watch

Let’s get into it ⤵️

💎Bitcoin Market Update

Bitcoin closed above $100K in January for the first time ever on a monthly timeframe. However, it has since pulled back and is currently hovering around the $94K zone.

To better understand where we are, here’s a breakdown:

• Above $100K: A must-hold zone—staying above this level keeps the bullish momentum strong.

• $90K–$100K: A no-trade zone—not the best time to go all-in or overextend.

• $80K range: A strong support zone—this aligns with the bull market band and could be a solid area to start accumulating.

Historically, February has been a strong month for Bitcoin and Ethereum, with altcoins typically outperforming from January to May in post-halving years. However, this cycle has played out differently, so don’t rely solely on seasonality.

Rather than questioning whether we’re still in a bull market, it’s more useful to focus on key levels and ask yourself:

• If Bitcoin reaches a certain price, what’s my plan?

• If my altcoins pump, how much do I take off the table?

• If prices drop to a key level, do I cut losses or buy more?

💎Altcoin Index

As per the altcoin index, we’re in a choppy middle ground, not fully in a Bitcoin or an Altcoin season. This chop has shaken some people out, but in halving years, short altcoin seasons are normal before a bigger one later.

💎State of the Altcoin Market

We’re currently in a red phase, mainly driven by macro factors. During this time, it’s crucial to have a solid strategy, knowing when to make moves or hold off. Major narratives: utility, RWA, AI, and memes are all in a correction. While this short-term dip is expected, AI and RWA still hold strong long-term potential. As speculative hype fades, quality projects in these narratives will rise.

February has historically been a strong month for Ethereum, which significantly influences the altcoin market. So, keeping an eye on Ethereum’s chart is key right now.

It is also essential to understand whether you're in a risk-on or risk-off environment:

There are generally 2 phases:

• Lights On

• Lights Off

We’re currently in the "lights off" phase, where liquidity is low, and gains are coming from capital rotation, not fresh money. When new money flows in, we flip into a “lights on” phase. Here things will pick up quickly, especially if you're positioned in the right assets.

💎 How to Navigate the Current Market

This cycle has been more about rotations than broad market pumps. As a result, adjusting your strategy to match these conditions is important. You don’t want to be stubborn and hold onto losing positions.

Here are 4 key principles:

1. Conviction: You need real belief in your trades, especially for long-term holds. If you don’t have conviction, you’ll second-guess and lose confidence.

2. Technical validation: Always have clear entry and exit points. In a volatile market, knowing when to cut a losing position is crucial. Set support and resistance levels and stick to them.

3. Position sizing: Only risk a small portion of your portfolio on high-risk trades. I never let one coin exceed 5% of my portfolio.

4. Know when to buy: There are two scenarios you can use: 1) Buy when a coin is making higher lows and reclaiming previous levels. 2) Buy when there's a big liquidation cascade or massive downside wick, signaling capitulation on quality altcoins—this presents the best buying opportunities. Avoid slow-bleed coins, which aren’t showing major moves right now.

💎Altcoins to Watch

Utility Altcoins

@solana | $SOL

Price: $189

Market Cap: $92B

Solana has been the leading Layer 1 in terms of project launches (memes, AI projects, DeFi projects), and this will likely continue for the rest of the season.

Holding Solana over Ethereum (for now) as a safe play makes a lot of sense.

@JupiterExchange | $JUP

Price: $0.805

Market Cap: $2.35

$JUP is Solana’s top DEX and $SOL’s top beta play.

Jupiter also recently revealed that it is burning 3 billion JUP tokens and using 50% of its protocol fees to buy back JUP tokens, which will be held for long-term growth.

10 more altcoins you should be accumulating and will weather any storm 👇

Those who believe and buy dips, always come out on top.