The Best Time to Buy Altcoins Is …

by Bruce Ng
By Bruce Ng

Bitcoin (BTC, “A-”) has exploded to $52,000! Not only is that higher than its recent 80-day-cycle high established on Jan. 11, but it’s also 75% of Bitcoin’s all-time high of $69,000. 

At this rate, there is a strong chance BTC may exceed its all-time high before its scheduled halving event that should take place in April. 

That’s already pretty incredible since Bitcoin usually doesn’t get the boost it needs to challenge a previous all-time high until after the halving. 

But it’s even more incredible when you consider the opportunities that we’re likely to see hit even sooner.

And no, I don’t mean in Bitcoin. 

See, BTC is such a large asset. Even if it finally breaks above that psychologically important six-figure barrier and claims the $100,000 level … that’s only double its current price.  

And in crypto, you can target gains of 5x, 6x even 10x in a bull market.

In fact, here are two successes my New Crypto Wonders Members have had recently: 

  • Coin A (a DeFi coin) has tripled since November 2023
  • Coin B (a memecoin) which doubled within a week in December 2023

As Bitcoin continues to explode and reclaims its all-time high, we think altcoins will end up outperforming to exceed Bitcoin’s gains. 

But altcoins are incredibly volatile. They race past when BTC goes up … but they also crash hard when BTC corrects. 

So, when is the best time to buy altcoins? 

It turns out, there’s actually an indicator you can use to help maximize your gains and minimize your risk exposure.  

The Altcoin “Buy” Signal Indicator 

This indicator comes from experienced crypto analyst cryptokoryo via the Dune Analytics website:  

Altcoin buy indicator. BTC price (black). Altcoin “buy” signal (yellow). Source: cryptokoryo. Click here to see full-sized image.

 

You can see above that the black line is Bitcoin’s price. And the yellow line is the altcoin buy indicator. 

Now, I want to direct your attention to the scale on the far left of the chart. A couple of points about that:

  • Below 0.1: Generational buy. This is a rare opportunity to load up at an amazing price.
  • Anything below 0.4: Accumulation zone. Time to accumulate alts.
  • Anything above 0.6: Distribution zone. Time to scale out.
  • Above 0.9: Generational sell. If you’re still holding, it’s time to let go and sell.

How can we test this indicator’s success? 

By backtesting. 

In the chart above, we can see a “buy” signal on Oct. 24, 2023 and a “sell” signal on Dec. 28, 2023. 

Using those dates as our time range, let’s calculate some altcoin performances. Specifically, the performance of three smaller cryptos based on market cap that I and my co-editor Juan Villaverde recommended in our New Crypto Wonders portfolio. 

As such, I’ll be calling them Coins A, B and C: 

Click here to see full-sized image.

 

It turns out, this is a pretty good indicator! 

We see that Coins A, B and C printed gains of 1.56x, 46x and 5.5x, respectively. These gains outperformed BTC, ETH and the TOTAL3 by a large margin. 

Now, turn your attention to TOTAL3. This is the market cap of all crypto coins minus BTC and ETH. 

Think of it as the total altcoin index.

Buying any old altcoin will likely net you a return akin to the TOTAL3 return. Because TOTAL3 represents the index of all altcoins. 

This means that if you were to use cryptokoryo’s altcoin “buy” indicator to buy any random altcoin this bull market, you’d probably do as well as the TOTAL3 performance, which is 46%.

That’s not bad. Especially when compared to returns you can target in TradFi. 

But as you can see, targeting specific altcoins based on their past performance and tokenomics while using the altcoin indicator can generate returns that far exceed the TOTAL3 performance.  

And that’s what our mission is for our New Crypto Wonders Members. 

And we don’t just use the cryptokoryo indicator — Juan’s own sophisticated Crypto Timing Model plays a big role in determining when we act. And, of course, we have a few other tricks and tools we use to select the best opportunities.  

If you’re looking to level up your altcoin trading this bull market, stay tuned. I’ll have more to share about New Crypto Wonders later this week.

For now, you can read through this description on our website and hold tight. Altcoin season is almost here.

Best,

Dr. Bruce Ng

About the Contributor

Dr. Bruce Ng is a literal rocket scientist who was among the first to write about DeFi. Today he applies the same mathematics and scientific methods to the crypto space to discover the world’s most promising, and potentially most profitable, altcoins.

Crypto
See All »
A
ETH $3,090.45
B
B
B
B
MKR $2,915.88
B
SOL $146.09
B
ZRX $0.526454
B
AAVE $86.76
B
B
B
B
MATIC $0.712898
B
XLM $0.110223
B
B
ADA $0.481823
B
CVC $0.176041
B
CRO $0.134414
B
Crypto Ratings
Loading...
Weiss Ratings