We've discussed many of Santiment's great indicators and signals that allow you to identify where the ideal buy times are in the often mysterious cryptocurrency market cycles. In this post, you'll find all of the most ideal resources (along with their links) to make you a great bottom chaser, and to see what others in crypto can't!

Without further adieu, here are some of the highly recommended tools that many professionals use to beat the retail crowd and identify when it is typically safe to inject more capital into your portfolio. Remember that the charts being used are related to Bitcoin for example purposes... but these indicators can apply to any of your favorite cryptocurrencies:

Social Trends: Crowd Mentions of Higher, Lower, and Price Predictions

The crowd is constantly making predictions on where the price of a coin is going next. And as you may expect, they are highly influenced by the (very) recent momentum that markets have shown them. Traders have a very "what have you done for me lately?" mindset, making their decision making emotion-based more often than you may expect.

As a result, this means that a mild -3% drop in Bitcoin's price can illicit a sudden bearish narrative with the crowd and result in posts a flurry of social posts like "$BTC is going lower" or "See you at $15K, Bitcoin". Or alternatively, a +3% rise could lead to a sudden surge in "Bitcoin will soon be $150K!"

This chart above may look like one heck of a long series of different price predictions, but they can be used together, along with words like "higher" or "below" to paint quite a picture about what the crowd feels crypto is going to do next. And they will often give away what they are actually doing with their trading. Since retail traders typically buy as whales are selling, or sell as whales are buying, using the vocal majority across social media is a fantastic way to predict future price movements.

You can also view this in a different fashion on the My Narratives page, inputting the same query. This may provide you with a perspective that feels a bit more seamless and intuititve to find the spots where a predominant bullish or bearish narrative from the crowd is beginning to emerge:

Key Stakeholder Accumulation

Even when prices are looking dismal, and you may be concerned that markets are in a perpetual freefall that won't end, you may often spot a hopeful sign from whale wallets. So what would you do when you see prices continually dropping and losing momentum like this?

Well, just like the crowd typically gets prices wrong, whales typically move prices the way they desire due to their unmatched capital that typically controls markets. Key stakeholders are a great group to keep an eye on, no matter what asset you're analyzing. And the best times to buy bottoms are typically when prices are dropping, while these large capital investors' bags are getting heavier and heavier full of coins.

As a supplementation to looking at key stakeholders, you can also simplify things and simply look at whale transaction levels for your favorite assets. If the coin's price has been dropping (or at least staying stagnant for a long period of time), and you suddenly see a huge surge in $100K+ or $1M+ transactions on this provided chart, there is a strong chance that it is a sign of major whale accumulation or transfers in preparation for a price turnaround.

Mean Dollar Invested Age Dropping

There are more long-term indicators to pay attention to when it comes to finding bottoms. And sometimes, we can look at metrics more as "validators" rather than instantaneous turn-around signals. There may be no better example of this than Mean Dollar Invested Age.

A metric that is exclusive to Santiment, Mean Dollar Invested Age is defined as the average age of all coins/tokens on the blockchain weighted by the purchase price. In other words, it's the average age of the dollars that are invested in a given asset.

You'll also notice the many teal spikes on the above chart. These represent a metric known as Age Consumed. This metric reveals the amount of tokens changing addresses on a certain date, multiplied by the time since they last moved. In other words, big spikes equal a large level of tokens moved (with an extra weight on older tokens being moved). This can be extremely valuable in accurately predicting bottoms. If the price is dropping, as it did following the then $73K Bitcoin all-time high in March 2024, and you then see a massive age consumed spike, this likely means a huge chunk of older tokens have moved back into circulation. In turn, these extra coins can create bullish momentum for crypto to quickly rebound.

We can go further back in time as early as 2013, and see regular examples of how Bitcoin's Mean Dollar Age went down in tandem with its market value rising and starting a new mid-term or long-term bull cycle:

This is more of a simplified view, but can be very effective in spotting when markets have a good chance of turning, with validation coming from a healthy level of dormant tokens coming back into regular circulation.

Social Dominance FUD Signals

Social dominance is one of those double-edged metrics that can signal both a major level of FOMO or FUD, depending on the context and the price direction of an asset.

It also may help give context to any social dominance spike if you combine it with a very helpful custom metric that measures the ratio of positive vs. negative commentary across social media. High spikes, as you would expect, imply there was a major level of FOMO going on, which would lead to prices topping soon. And low spikes represent the exact opposite - major FUD, leading to great bottom opportunities to buy into.

And we would of course be remiss to not also mention the fact that Santiment has a tool readily available to easily identify whether a coin is getting a high level of discussion compared to normal. The Top Trending Coins Dashboard identifies which assets are seeing an unusually high level of social dominance.

Here, context is important yet again. You can see whether the asset has a high ratio of positive, neutral, or negative sentiment in relation to its high level of discussion. As you may guess, you want to be seeking out the ones with a high level of negative sentiment as a good signal to buy. Just as we mentioned near the top of the article, prices typically move the opposite direction of the crowd's expectations, so you can be a successful contrarian by buying into others' doubts.

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So there are a few options you can use to your advantage to check on some of your favorite assets and find great bottom opportunities. They are sometimes hiding in plain sight, while other times, it takes a bit more diligence. But if you stay disciplined and 'trust the fundamentals', you will find yourself buying with increased confidence in no time.

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Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.