#067 - A simple trick to buy cheap Bitcoin

The best time to buy is when this alert triggers (with examples)

So, last week was pretty wild in the crypto space.

It’s August 2024, and honestly, it’s been a while since I’ve seen such a brutal correction across the entire market.

The market took a sharp dive.

Much larger than expected.

The total market cap dropped from $2 trillion to $1.7 trillion in just a few hours.

This crash triggered a lot of liquidations.

How to buy cheap Bitcoin from people that don’t want to sell

The trick is to buy during and after a few long liquidation alerts triggered.

This is a new alert type that I have added to the onchain edge alerts bot (get access by referring someone see more down below)

The alert looks like what you see in the screenshot. If there are more than 600 BTC long or short positions that get liquidated in an hour then the alert gets triggered.

As long as the overall trend is bullish it’ advantageous to buy after long liquidations.

During this capitulation event, Bitcoin fell to $49.6K. It bounced back to the mid-$50K range, but it was a rough ride.

Bitcoin experienced a healthy recovery from $59k to $60k with a massive candle. This was most likely a massive bear trap.

A lot of pain and very bad sentiment on crypto twitter. Buying pain is profitable.

The onchain Edge Index dropped below 30, which meant a 0.5 DCA buy alert.

What’s more, I’ve added buy alerts for specific coins, total market cap, and altcoin market cap so that you don’t miss large price movements.

On August 6th there were buy alerts for SEI, BTC, Ondo, IO.net

This is the SEI alert that triggered. Now SEI is at $0.29

There’s definitely no guarantee that this is the bottom but it’s better to wait for such a signal than waiting for the top.

Access the Onchain Edge Index Alert Bot By referring 2 subscriber to the newsletter. (increasing to 3 soon)

I will add custom daily timeframe buy and sell alerts for BTC and ETH in the next two weeks.

The onchain edge index showed a DCA buy signal on the 6th of July 2024. Did you catch it?

When trading altcoins you need to keep this in mind:

Altcoins and Ethereum got hit even harder during this crash, especially meme coins.

Low liquidity coins can drop 30%, 40%, or even 50% during liquidation.

You can check liquidity on dexscreener

For example, Pepe only has $37m in liquidity for a $3.48B FDV. Not everyone can sell and exit their position completely during the bear market. It’s a game of magical chairs. 100 investors and 1 chair.

you can also check on good crypto

Different risk metrics for different coins—that’s key.

The Bank of Japan was a big reason for this crash. They played a major role in both the market’s fall and its recovery. On Monday, everything was red.

It looked like the Bank of Japan had pulled the rug on the Japanese market. They announced a 0.25% interest rate hike—the highest in 15 years.

But then they said they’d pause any further hikes, which helped stabilize things.

So, it wasn’t just the crypto market that got hit. The whole global economy felt the impact.

The good news? The U.S. Fed kept interest rates steady at 5.25% to 5.5%. They also hinted at possible rate cuts if inflation continues to drop. Meanwhile, the UK cut rates for the first time since March 2020.

Overall, global markets aren’t looking great. But let’s hope the crypto space can do its own thing and not follow the traditional markets too closely.

Liquidations can be a strong indicator of sentiment. When they happen, it might be a good time to buy. Forced selling creates opportunities.

Pro tip: The second or third liquidation alert (over 600 BTC liquidated in an hour) has proven. tobe a good buing opportunity during bullruns.

Bitcoin whales were busy during this time.

Some onchain metrics are close to bear market levels.

Wallets holding more than 1K BTC increased their holdings from 4.7 million to 4.8 million. Bitcoin dominance also hit a yearly high.

BTC dominance is at 57.57% a resistance that used to be a support in August 2021.

This resistance is interesting because the altcoin market could see a rally when Bitcoin dominance drops.

Grayscale made some moves too. They launched two new crypto investment trusts: BitTensor Tau and Sui.

Altcoins like Solana had a strong recovery after their big price drop. Solana went from $113 all the way up to $163.

Stories from the crypto trenches

Now, I’ve been thinking about sharing some personal stories from my years in the crypto space in future newsletters.

Like, it’s funny—I can often remember exactly where I was during big market events.

For example, back in 2017, I was in Iceland during a Bitcoin crash.

I wanted to buy, but couldn’t because of poor internet and a dead laptop. It’s interesting how you can tie market events to specific moments in your life.

I’ve also made a lot of mistakes in the market. Like having a solid plan but not sticking to it, which cost me a lot of money. On the flip side, I’ve made some good calls too.

I even saved some friends and family from losing millions during the Luna collapse.

I noticed BTC movements from LFG and had doubts about the Anchor APY. I urged my wife to pull her money out just days before the crash.

It turned out to be a lifesaver.

Would you be interested in hearing more about these experiences?

Please let me know if you want to read about that in future newsletters. Sharing these stories might help you avoid making the same mistakes I did.

That’s it for this week. Stay safe out there, and keep an eye on the market.

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