In a world driven by instant gratification, is 20% per year enough for the modern Crypto investor? Would 20% per month cut it? How to spot such plays?

We grew up absorbing the wisdom of Warren Buffett and other legendary investors who emphasized on how 20% return per annum is a solid achievement.

While I have a lot of respect for Buffett and have no doubt what he says is true for long term bets, but lets be real. We are living in the times of instant gratification. Everything we desire is available to us on a click of a button. No Millenial or Gen-Z wants to wait for an entire year to make a 20% return. Especially true if you're in the Crypto world.

So I thought to myself, does 20% per annum still cut it in today's day n age. Is it possible to make more than that? Well, we for sure know smart traders and investors do it. While it might not be consistently achievable for decades to come but even if its doable for just a couple of years, it might be amazing, isn't it?

What about aiming for 20% per month instead? Is 20% per month good enough? Well, it sounded good enough to me and I decided to see if I can find some patterns on the chart and see if some similarities can be found in assets that pump over 20% in a month.

Here's what I found;

I am only going to look at monthly charts for this exercise. Why? I want to keep this simple. A simple glance should get you the idea if its going to happen or not. If it doesn't strike you in the head the first time you look at the chart, probably its not going to pull up a 20

The first pattern I found is Massive Breakout after a prolonged, tight consolidation range on very High Time Frame (12 months/3months/1month)

Emphasize on "Massive Breakout." We don't want price to barely crossover. We want to see massive green candles towering the range where you have to enlarge the screen to see the preceding candles. (generally 100%+ pumps in crypto)

Lets study some charts

Look at Chart 1.1 - The price remained in a tight range for a few months. It formed a horizontal base for months (indicating no intention to buy or sell) and since this had been preceded by a very huge dump, you could make an assumption that all the sellers that wanted to sell had already sold.

Then the price decided to pop almost 85% (breakout candle). The following candle produced a 370% return in just a month. So basically fitting our criteria of having a 20% candle in just a month.

Now it may seem like a very simple breakout pattern at first but the key here is the timeframe. Low timeframe breakouts generally suck. They could be manipulated easily causing a bull trap and a steep price reversal. Not that this could not have happened here but when the time frame is this long (like a monthly candle), in crypto terms this is "years." Very few people have the patience and temperament to deal with this kind of setup. So even though the recurrence of something like this will be very low, its easier to spot, you mostly don't get caught up in a chop or fake breakouts and you can chill and not be glued to the screen 24x7. But waiting for something like this to happen can make you impatient.

The idea is to now see if this thing repeats and can we see a few more examples of this happening?