The 100% Cash Test 🔰

Market-wide nukes are one of the best times to take the 100% Cash Test.

If you were 100% in USDT today, would you buy back the same coins you currently hold w/ the same size?

If not -> rotate your current risk towards alts with highest chances of bounce or long-term outperformance (Alts with RELATIVE STRENGTH, strong chart).

What you don't want is a market-wide bounce while your bags remain flat or barely up, having lost the possibility of a good entry in a winner, and risking further severe drawdowns if BTC nukes again.

So far, I'd say good allocations are (subject to your edge):

–AI (barbell of 80% consolidated larger caps/winners + 20% low caps with high potential that are overlooked due to current market fears).

–Category-winners or innovators.

–Strong memes (with a real meme behind) that are highly oversold and maintaining HTF bullish structure.

Also, no one cares if you sell that bag that you don't care about anymore and later it bounces a bit.

If there's more downside than upside, regardless of current BTC moves, you'll likely be better off with some cash on hand—it will give you a sense of indifference and therefore objectivity towards the market direction, diminishing emotional reactions.

Link to the original tweet: https://x.com/resdegen/status/1877408746332369151