Crypto Trading: 3 Ways to Find the Next 10x Altcoins in 2024 Bear Market

Crypto Market Insights:

The global crypto market has shrunk 23%, shedding over $635 billion in market capitalization since retracting from the yearly-peaks recorded on March 13.

As the bottom nears, crypto investors are exploring new strategies to maximize gains ahead of the next bullish market phase, with the US Fed expected to execute rate cuts in H2 2024.

1. Buy-the-Dip: Tracking Technical Indictators, for Tokens Nearing the Bottom.

“Buy-the-dip” is one of the most popular statements in the crypto parlance. This trading strategy is often deployed by bullish traders during periods of widespread market downtrend, characterized by falling Bitcoin prices, liquidations and negative social sentiment surrounding the crypto industry.

Buying-the-dip involves purchasing units of a cryptocurrency, at extremely low prices during a market dip. This strategy has proven to be highly profitable for traders who can spot the right signals, and buy-in at the perfect time.

The ‘Death Cross’ is one of the most popular technical indicators for tracking tokens that are approaching the bottom.

The Death Cross occurs when a short-term moving average crosses below a long-term moving average, typically the 50-day moving average crossing below the 200-day moving average.

The chart above illustrates Polygon (MATIC) price action for 2024. The red trend line tracks the 50-day SMA (Simple Moving Average) price, while the green trend line represent the 200-day SMA.

At the time of writing on July 10, MATIC’s current price, and 50-day SMA of $0.62 has now fallen far below the 200-day SMA of $0.80.

This pattern is often interpreted as a strong bearish signal, suggesting that the asset’s price may continue to decline in the near term.

For traders employing a buying-the-dip strategy, identifying a Death Cross can help them time their entry points more effectively.

By waiting for this indicator to appear and closely monitoring other market signals, traders can potentially purchase cryptocurrencies at lower prices, positioning themselves for significant gains when the market eventually recovers.

Other indicators that can help time the market bottom include negative social mentions, and declining trading volumes showing seller fatigue signals.

2. Get-in Early: Tracking new market narratives, and emerging projects

Another way to navigate a bearish crypto market phase profitably is to get-in early on a project with high-growth potential. Arguably this is the most effective  crypto-trading strategy, with lots of traders booking millions in profits simply by getting in early on the right project.

For instance, Solana’s top memes, Book of MEMEs (BOME) and SLERF both delivered more than 2000% gains within the first weeks post-launch.

However, spotting the right project requires sophisticated experts like BasedVC who can sift through the media hype, market noise, and zoom in on the right fundamental growth metrics. 

The chart above shows how BOME price had surged 2,542% from $0.0008 on its March 14 launch date to reach $0.019 on April 2. BOME price trading $0.008 at the time of writing on July 10, leaving early-investors with gains in excess of 1,000%, despite the crypto market correction phase that has ensued in the last 3 months.

This is a clear illustration of how effective the ‘get-in early’ strategy can be in the crypto markets.

Previously, large investors with sophisticated tools and access to crucial market information have routinely deployed this strategy and are often criticized for dumping on retail traders when the market matures.

However, licensed platforms like BasedVC now allow  trader communities to co-invest early alongside large institutional firms such as a16z, Coinbase Ventures, Animoca Brands and more.

Since 2023, the team has deployed more than $65 million in investments into projects like Heroes of Mavia, Shrapnel, Gunzilla Games, Portal, Tatsumeeko, Chrono Forge and more, which have yielded varying levels of returns.

With multiple service offerings as a venture capital and a launchpad, the BasedVC ecosystem has already attracted over 20,000 daily active users, which could rise further as strategic traders begin to adopt the get-in-early strategy to navigate the current bearish market phase.

3. Follow-the-Money: Tracking Crypto Whales Buying Trends

Whale tracking is another age-long strategy that has delivered profitable outcomes for strategic crypto traders over the years. This method involves using on-chain sources to track specific assets that are attracting significant whale demand during a bearish market phase.

In crypto, whales are regarded has large institutional investors, who are highly sophisticated market intelligence, and can influence an assets performance overtime, with their financial muscle.

Some on-chain indicators that can be used to track whales buying trends include, Large transactions count, Whale wallet balances, whale transaction alerts.

For illustration, the IntoTheBlock chart below presents the Toncoin recent price trends in comparison to the daily count of Large Transaction (single transactions that exceed $100,000) involving TON.

The chart above clearly shows how Toncoin’s ascent to an all-time high price of $8.28 in June 2024 was preceded by a steady rise in the number of daily Large Transactions.

The TON whale transaction count has increased by more than 2,000% between March and June 2024, while Toncoin price also skyrocketed more than 700% to reach a new all-time highs during that period.

This is a perfect illustration of how whale trading activity can impact price of an asset, and why it is an important strategy to deploy during a bearish market phase.

When whale’s start buying up a particular asset during a bear market, it puts the asset in position to enter an accelerated breakout when the market sentiment flips.

Firstly, the whales large transactions, provide increase market liquidity, allowing panic seller to exit their positions with minimal drag on the asset price.

But more importantly is signals that large institutional investors are taking bullish bets on the assets, capitalizing on the price slump to buy the dip at a discount.

Over time, this positive conviction among the sophisticated whale traders often influences smaller retail traders to begin taking bullish positions as well.

Conclusion:

In summary: tracking the ‘Death Cross’ signals for assets nearing the bottom, joining co-investing platforms like BasedVC, and tracking on-chain whale transactions are 3 historically proved and data-driven strategies to navigating the ongoing crypto bear market profitably.

It is important to not that buying-the-dip is best done when the main bearish catalysts are external factors such as macroeconomic indices and inflation. If the bearish catalyst driving an asset’s price downwards are internal factor like network vulnerabilities, or competition from other projects, strategic investors may steer clear of such assets until the root-cause is solved.