- 2 Simple Charts to More Effectively Time Crypto Bull Run Cycles
Just now·3 min read
Source: Google Trends
As someone who may be coming from the finance 1.0 world, you may be scratching your head wondering where to start when it comes to knowing how to time the crypto market. Unlike in traditional finance, the insight tools of the trade in crypto land are very different.
You definitely will not get good insights from watching the TV.
The first thing TV publishers should be educating their audiences about is the fundamental’s of Bitcoin’s 4-year halving... which has shown to be a direct catalyst to past crypto market bull cycles.
The reason you should care so much about what Bitcoin and Ethereum are doing is because they lead the market in terms of liquidity. The easiest way to understand this visually is by looking at the image below.
Fiat (100+ trillion)
Bitcoin (1+ trillion)
Ethereum (Large Cap) (350+ billion)
Alts (Mid-Low Cap) (The rest of the crypto market)
Since what goes on in Bitcoin in Ethereum acts as the catalyst to price appreciation in alts, it only makes sense to pay very close attention to the charts below to have an edge on 99% of consumer crypto traders who don’t really pay any attention to this stuff.
An edge? How? At WhaleRoom, we only like to look at the market in multi-year time scales. We do not find it healthy or productive to try timing the market in daily, weekly, or monthly timeframes.
Since we have a longer-term outlook on what it means to make a good crypto investment, the tricks we are about to propose are pretty useless if you are someone who trades in/out of tokens a lot. So if you are a day-trader or token flipper, the resources below may not be useful to you.
These trends are supported by noticeable web traffic growth over at the two largest token listing aggregators in the world.
Coinmarketcap.com Traffic, Ranking & Marketing Analytics | Similarweb
Total Visits 140.35M 5.35% Avg. Visit Duration 00:06:30 Estimated Data Verify Your Website Traffic Sources Find out…
Coingecko.com Traffic, Ranking & Marketing Analytics | Similarweb
Total Visits 76.88M 10.24% Avg. Visit Duration 00:07:02 Estimated Data Verify Your Website Traffic Sources Find out…
Another great way to know when Bitcoin or Ethereum are overbought or oversold is to visit the two links below. Price tends to go up as exchange balance go down (people withdrawing their funds for safe keeping).
After viewing these, you will feel compelled to check up on these exchange flows on a weekly basis to ensure you are not buying the top or selling the bottom.
Though these indicators won’t tell you what’s going on with 100% certainty, they definitely allow you to spot long term pressure building on BTC or ETH when it comes to consumer interest and on-chain data from top exchanges.
What we recommend is that you set these urls up as bookmarks in your browser and get in the habit of checking up on them every once in a while to see if any trend has broken for BTC or ETH.
Let us know in the comments if you found these tips helpful and be sure to visit WhaleRoom.org/rooms to get an up-to-date list of the crypto discussion rooms we’ll be hosting when we launch this Summer.
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- Date of publication:
- Tue, 05/04/2021 - 14:13
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