The market’s showing signs of life again this week, and I’ve gotta say — it’s a relief. After the bloodbath we just lived through, all I’m really hoping for is a return to some semblance of normality. Where a guy can make his 1% per day of free money without a 60% drop in asset values messing it all up.
Crossing fingers we’re back.
The Smart Play During the Dip
I’ve written before about how bot strategy during a crash matters MORE than bot strategy during a bull run. And the last few weeks have been a masterclass in why.
Here’s the move I think was smartest for anyone running automated strategies: if your bots bought in low during the dip, you turned them off while holding those positions, and now you restart them as values climb back up — you’ve essentially netted yourself a larger profit on ALL the purchasing your bots made during the downturn. You let the bots do the buying, then you used human judgment on the timing of the restart.
That’s not pure automation. That’s using bots as a tool within a broader strategy. And I think it’s the right call.
For ETH specifically, I’d be watching the $2,200 level as a key threshold. Below that, bots go back on and start accumulating. Above it, you’re riding positions up. Simple framework, but it works.
DeFi Is Where the Real Opportunity Sits
Here’s the thing nobody’s really talking about right now: the DeFi space got absolutely CRUSHED in this correction. And I mean crushed.
CAKE, UNI, SUSHI, BAKE, MAKER, COMP — these aren’t meme coins. These are protocols with actual revenue, actual users, actual utility. And they’re trading at prices that could bring outsized rewards if — WHEN — the market recovers.
I’ve talked before about why I think the Binance Smart Chain ecosystem and PancakeSwap specifically have real legs. That thesis hasn’t changed. What HAS changed is the entry price. When solid DeFi tokens drop 60-70% alongside everything else, that’s not a reflection of their fundamentals deteriorating. That’s a liquidity event dragging everything down together.
I’d bot those positions. Set up conservative mean-reversion strategies on DeFi tokens, let the automation do the work of catching the bounces, and give yourself exposure to what could be a massive recovery in that sector.
A Word on the Meme Coin Temptation
I know there’s a lot of buzz around certain ultra-cheap tokens right now. Shiba Inu keeps coming up everywhere. And look — I get the appeal. You can buy millions of tokens for a couple hundred bucks, park them somewhere, and forget about them. The lottery ticket approach.
But here’s where I always go back to fundamentals: look at the MARKET CAP, not the cost per whole unit. A token that costs $0.000007 isn’t “cheap” if the total market cap is already in the billions. That’s just math. The price per unit is meaningless without context.
And with some of these tokens, there’s the added risk that the supply isn’t fixed. If a project can print however much they want of a token, your dilution risk is enormous. That said — and I’ll be honest here — some of these could go up 8X before reaching their previous highs. So there IS a speculative case. I just wouldn’t confuse it with an investment case.
If you’re going to play meme coins, treat it like what it is: a small, disposable bet you’re genuinely fine losing entirely. Don’t bot it. Don’t build a strategy around it. Just park it and forget it.
What I’m Actually Doing Right Now
My focus this week is pretty straightforward:
- DCA into quality DeFi tokens — the ones I mentioned above, especially anything in the PancakeSwap ecosystem
- Restarting bots selectively — not everything at once, but turning them back on as individual pairs show stability
- Keeping position sizes conservative — we’re not out of the woods yet with the China situation and general market uncertainty
- Ignoring the noise — every crash brings out the “crypto is dead” crowd and the “buy this random token” crowd in equal measure
The Bigger Picture
I wrote recently about China’s crackdown and how this time it feels different. That overhang hasn’t gone away. But markets have a way of pricing in bad news faster than we expect, and the recovery we’re starting to see suggests the worst of the panic selling might be behind us.
The DeFi sector specifically has a strong recovery case because the underlying protocols didn’t break. PancakeSwap still works. Uniswap still works. Lending protocols still function. The technology didn’t fail — prices just got dragged down by macro fear.
That’s the kind of dip you buy. Preferably with bots.
