Bottom & Top Areas Finder - Crypto

kemarin

Do you, like me, want to know when the market bottom or tops?
After 4+ years in crypto and doing swing trading (weeks/months), I've come to a realization that I want to share with you, which is fairly simple:

To find bottom or top areas for cycles check how far the price action reaches below or above the daily SMA 200

• A beautiful accumulation area is generally around -60% below the daily SMA.
  

• A beautiful distribution area is generally around +60% above the daily SMA.
  

First things first:

• the distance is calculated from the closing price (red candle) or opening price (green candle) up to the SMA in a bear market. Opening (red candle) or closing price (green candle) down the the SMA in a bull market.
  

• While +/-60% is an average it will be more pronounced in both directions for smaller projects and less pronounced for larger ones. BTC will not drop -70% the SMA while RUNE will.
  
  Because of this I included multiple buy/selling percentages (-50/60/70%, +40/50/60/70%). The +40% is for Bitcoin to be honest.
  
  How to apply this simple indicator? Here are my suggestions:
  
  • A bear market will last months, so do not rush to buy when the first arrow appears. Let the first flush go by and wait for a second flush or a consolidation below the first flush. Use BTC as reference when trying to buy other coins.
    
  • If we are in a bull market and we have a crush like we did in August (2024) then by all means buy the dip at any levels shown by this indicator.
    
  • When distributing sell a part of your profits when the first arrows appear.
    
  
  
  To make things more useful I added alerts so you can automate them for any level offered by the indicator, both for buying & selling.
  
  Hot tips to cancel noise, especially when buying in a bear market. I use two additional incredible indicators for this kind of swing trading:
  
  • OrderBlocks are so good I can't describe it. Use it as much as you can
    
  • Open interest Suite by my favourite indicator master - Leviathan.
    In a bear market a few 'bearish' market blocks appear from the first indicator. When the first 'bullish' block appears you will notice a following increase in volume (simple volume indicator) coupled with a HIGH increase in open interest (green candle in the interest suite indicator).
    
  
  So bullish block, then open interest + volume within a couple of days and BOOM, things start moving upwards.
  An example is here -> BTC 2022 bear market
  
  Notes:
  I am not a coder and this indicator is very basic, yet functional. I am happy to take feedback and/or see how you improve on it.
  I know I linked the BTC chart. Feel free to try any other chart to confirm my idea:
  - TETUSD
  - CROWNSOL
  - RLBUSDT
  - SYNUSDT
  - UNIUSDT
  - RIOUSDT
  These are random ones that I chose to show both the bear market buying point & the 'buy the dip' scenario
  
  Finally it's important to understand where to look is filtering through coins/tokens that haven't just tanked upon release and not moved. Look for those that went through a full cycle (bull/bear) and is still active.
  
  Happy trading!