By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Jangopedia Logo
  • Home
  • News
    • Bitcoin
    • Altcoin
    • DeFi
    • NFT
    • Regulation
    • Blockchain
    • Press Release
    • Sponsored
  • Forecast
  • Advisor
    • Credit Cards
    • Loans
    • Mortgages
    • Insurance
    • Banking
    • Investing
    • Managing Your Finances
      • Taxes
      • Credit Score
      • Debt
    • Money Transfer
  • Stories
Reading: 3 indicators that contrarian crypto investors utilize to decide when to purchase Bitcoin
Sign In
  • Join US
JangopediaJangopedia
Aa
Search
  • Home
  • News
    • Bitcoin
    • Altcoin
    • DeFi
    • NFT
    • Regulation
    • Blockchain
    • Press Release
    • Sponsored
  • Forecast
  • Advisor
    • Credit Cards
    • Loans
    • Mortgages
    • Insurance
    • Banking
    • Investing
    • Managing Your Finances
    • Money Transfer
  • Stories
Have an existing account? Sign In
Follow US
  • Contact
  • Blog
  • Complaint
  • Advertise
© 2022 Jangopedia. All Rights Reserved.
NewsBitcoin

3 indicators that contrarian crypto investors utilize to decide when to purchase Bitcoin

Jangopedia
By Jangopedia Published May 28, 2022
Share
7 Min Read
3 Metrics Contrarian Crypto Investors Use To Know When To Buy Bitcoin 1
SHARE

The price of Bitcoin is dropping But what dips should you look for to purchase? Three metrics that smart investors can use to decide the best time to purchase BTC.

Contents
The Crypto Fear & Greed IndexAffluence of the whale walletCertain traders purchase when Bitcoin price falls below its production cost.

The art of buying low and selling high isn’t as easy to do especially when emotions or volatile markets get added to the party. The most successful bargains are discovered when there’s “blood on the streets,” however, the risk of falling into a knife typically keeps investors on the sidelines.

In May, the month was particularly difficult for crypto investors due to the fact that Bitcoin ( BTC) fell to a record low of $26,782. Some experts are now anticipating that the price will be lower than ,000 BTC cost in the near-term. In times like these, anxiety is rampant that the investor who is a contrarian seeks to invest in promising investments before the general market catches up.

The Secret To Splitting Your Money And Bills Fairly As A Couple
Trending
The Secret to Splitting Your Money and Bills Fairly as a Couple

Here’s a look at a few indicators that investors with a skewed view are able to use to pinpoint the best occasions to start positions prior to the next major market rally.

More Read

In The Economy 3.0, Metaverses Will Create Jobs For Millions

In the Economy 3.0, metaverses will create jobs for millions

Price analysis 5/27: BTC, ETH, BNB, XRP, ADA, SOL, DOGE, DOT, AVAX, SHIB
Ethereum price falls below $1.8K support level as bears get ready for Friday’s expiration of $1B options
“Yikes!” Elon Musk warns users about the latest deepfake cryptocurrency scam
Major validator calls for ‘completely new chain’ to replace Terra

 

The Crypto Fear & Greed Index

 

It is the Crypto Fear & Greed index is a well-known gauge of market sentiment that many investors use to forecast the future for the markets. When taken at its on its own the index, an “extreme fear” reading, like the current mood is intended to indicate that you should stay out from the market and safeguard capital.

 

Crypto Fear &Amp; Greed Index. Source- Alternative
Crypto Fear &Amp; Greed Index. Source- Alternative

 

The index can serve as a price indicator, which was which was emphasized by analysts from the company that offers cryptocurrency intelligence Jarvis Labs.

One of the most important elements that could help the index to rise will be the increase of the price. Jarvis Labs backtested the idea of buying when the index is below a predetermined threshold, and selling once it hits a certain level.

In this test for this test, an Index score of 10 was selected to be the lowest threshold for the test, and scores between 35 and 50, and 65 were used as selling points.

 

Fear &Amp; Greed Returns For Btc. Source- Jarvis Labs
Fear &Amp; Greed Returns For Btc. Source- Jarvis Labs

 

If this method was tested back and the results revealed that the short-term option of selling when the index had surpassed 35, as illustrated in the blue line on the above chart, gave the most favorable results. This strategy yielded the annual return average of 14.6 percent, and the cumulative return was 133.4 percent.

In May, the index reached 10, and continued to record at least 10 or less in six of the 17 days which came up one of the low scores of 8 being recorded on the 17th of May.

While it’s possible that the market could still fall in the near future but history suggests that the prices and index will eventually climb above what they are currently at, offering the possibility of investing for traders who are not orthodox.

 

Affluence of the whale wallet

 

Follow Bitcoin Whale wallets that have balances that is more than 10,000 BTC plus is an additional indicator of that buying opportunities are present.

 

Number Of Bitcoin Addresses With A Balance Of At Least 10,000 Btc. Source- Glassnode
Number Of Bitcoin Addresses With A Balance Of At Least 10,000 Btc. Source- Glassnode

 

A closer look over the past three months reveals that, even as this market was shedding its value but accounts that hold at minimum 10,000 BTC has been increasing.

 

Number Of Bitcoin Addresses With A Balance Of At Least 10,000 Btc. Source-Glassnode
Number Of Bitcoin Addresses With A Balance Of At Least 10,000 Btc. Source-Glassnode

 

The quantity of whale wallets that are this size is at the highest since February 2021 when Bitcoin was trading at a high of $57,000 and the wallets were selling to the highest levels near the market peak.

Many experts have posted on Crypto Twitter are calling for an additional drop of 30-plus percent in the cost of BTC the whale accounts are betting on a bright future.

 

Certain traders purchase when Bitcoin price falls below its production cost.

 

Another metric that could give insight into what and where to buy is Bitcoin’s average mining price that is the amount it takes to mine one BTC.

 

Bitcoin Average Mining Cost. Source- Macromicro
Bitcoin Average Mining Cost. Source- Macromicro

 

As you can see in the chart above, the value of Bitcoin has been trading in excess of what it costs to produce most all of 2017 which suggests that the metric can be an excellent indicator of when generational buying opportunities are created.

A closer examination of the current data will reveal that the average mining price is $27,644 which is about $2,000 less than where BTC is trading at the time of writing.

 

Bitcoin Average Mining Cost. Source-Macromicro
Bitcoin Average Mining Cost. Source-Macromicro

 

The analysis also shows that in the past, when the price of BTC was lower than the cost of mining the price tended to remain just 10% below what it cost of mining, and typically was able to recover its parity in several months.

Bitcoin mining difficulty has also recently reached a record-breaking new record as the market is currently in an increase as more industrial-sized mining companies are put into operation. This suggests that it’s unlikely the cost of mining will decrease significantly in the near future.

All in all the current price to mine in comparison to the price on the market for BTC makes a convincing argument for investors who are naive that the fear that is prevalent in the market is the opportunity to become greedy even when the majority of investors are afraid.

  • The Secret To Splitting Your Money And Bills Fairly As A Couple
    The Secret to Splitting Your Money and Bills Fairly as a Couple
    by Jangopedia●January 21, 2023
  • Health Insurance
    Health Insurance
    by Jangopedia●September 7, 2022

TAGGED: Bitcoin, Bitcoin Mining, Bitcoin Price, BTC Markets, Cryptocurrencies, DeFi, Market Analysis, Markets, Mining
Previous Article 27 Btc Eth Bnb Xrp Ada Sol Doge Dot Avax Shib Price analysis 5/27: BTC, ETH, BNB, XRP, ADA, SOL, DOGE, DOT, AVAX, SHIB
Next Article In The Economy 3.0, Metaverses Will Create Jobs For Millions In the Economy 3.0, metaverses will create jobs for millions
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected

235.3k Followers Like
69.1k Followers Follow
Pinterest Pin
56.4k Followers Follow
25.4k Members Follow
- Advertisement -

Latest Crypto News

Food Couple Restaurant Breakfast Cafe Eating Smile Chinese Date Afro American T20 V7K9X8 840X487 1
The Secret to Splitting Your Money and Bills Fairly as a Couple
Health Insurance
Health Insurance
Best Car Insurance
The Best Car Insurance Companies for August 2022
Best First Credit Cards To Build Credit
Best First Credit Cards To Build Credit

You Might also Like

In The Economy 3.0, Metaverses Will Create Jobs For Millions
NFT

In the Economy 3.0, metaverses will create jobs for millions

May 30, 2022
27 Btc Eth Bnb Xrp Ada Sol Doge Dot Avax Shib
News

Price analysis 5/27: BTC, ETH, BNB, XRP, ADA, SOL, DOGE, DOT, AVAX, SHIB

May 27, 2022
Eth
News

Ethereum price falls below $1.8K support level as bears get ready for Friday’s expiration of $1B options

May 27, 2022
Elon Musk Warns Users About The Latest Deepfake Cryptocurrency Scam
News

“Yikes!” Elon Musk warns users about the latest deepfake cryptocurrency scam

May 26, 2022
Show More

Life is the Topic Money is the Tool

Subscribe to our free weekly newsletters, This Week In Your Wallet and Jangopedia’s weekly digest. We will never sell or share your data with outside parties

[mc4wp_form id=”2330″]

Quick Link

  • Bitcoin
  • Crypto Currency
  • Cryptocurrency Exchanges
  • Dogecoin
  • Ethereum Price

Top Categories

  • Bitcoin
  • Crypto Currency
  • Cryptocurrency Exchanges
  • Dogecoin
  • Ethereum Price

Useful

Advertise

  • Advertise with us
  • Newsletters
  • Deal

© 2022 Jangopedia. All Rights Reserved.

  • PRIVACY POLICY
  • COOKIES POLICY
  • TERMS OF USE
  • OUR SITE MAP

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?