Why do people think that 2024 is the bull market year for the cryptocurrency world? There are many reasons why 2024 has attracted much attention, making it widely believed that it may be the bull market year for the cryptocurrency world. Here are some of the main factors:
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Ethereum was in an overall volatile operation last trading day. It fell back to around 1618 in the morning session and rebounded to 1650 before falling back under pressure. In the late session, it fell again and rebounded to around 1630. The current price is volatile around 1645.
Yesterday, Changlu gave a strategy in the real-time strategy of entering long positions near 1630 and entering short positions near 1650. Those who follow the operation will reap profits in both long and short positions.
Ethereum market analysis: Yesterday, the market formed a long lower shadow negative column, and was supported by the daily middle track near 1630 below, and the market rebounded. However, it was suppressed by the upper moving average. The market rebounded many times but did not make an effective breakthrough. After rebounding to the high point near 1785 and forming a long upper shadow, the price fell, and there was a trend of moving out of the evening star. If the market cannot rebound smoothly and break through the upper moving average pressure and fall below the daily middle track support, it will continue to fall, but on the daily line, we must also pay attention to whether the market will rebound from the 5th wave. If it does, then we need to continue to pay attention to the suppression of the weekly middle track near 1775. If you are not sure about the market and often lose money, you can find a long road, and the long road will lead you to make orders.
On the 4-hour chart, after the market rebounded from the high point near 1785, there will be a period of shock repair. Supported by the Fibonacci retracement line near 1630 below, it has not gone out of the low point, but the overall downward trend of the market has not been broken. The price rebounded after inserting the pin near 1618. In the short term, the market has rebounded slightly. If it can break through the pressure of 1650 above, there will be a chance to test the pressure of the high point near 1670. The price will enter a new shock repair range. In terms of operations today, it is recommended to enter short orders on the rebound, and consider entering long orders if the support below is not broken.
The timing of the bull market is an important topic for investors to pay attention to. In this article, we will discuss how to judge good currencies and from what aspects to help readers better grasp investment opportunities.
1. High growth potential: Hundred-fold coins have high growth potential, the industry or field they are in has the potential for stable growth, and the company has good development prospects.
2. Strong competitive advantages: The company to which BaixCoin belongs has unique competitive advantages, such as technological innovation, brand premium, patent rights, etc., which enables it to stand out in the market competition.
3. Market recognition: Hundred-fold Coin is widely recognized and accepted in the market, has a high market share, and is expected to further expand its market share.
4. Outstanding financial performance: The company to which BaixCoin belongs has good financial performance, such as stable profitability, excellent cash flow, etc., which can bring rich returns to investors.
5. Mature management team: The company where Baibicoin is located has a mature and stable management team. They have rich industry experience and good management capabilities and can effectively promote the development of the company.
6. Sustainable development: The company to which BaixCoin belongs has the ability to develop sustainably, can adapt to market changes, and remain competitive in different economic environments.
7. Reasonable valuation: The valuation of the company to which the 100x coin belongs is relatively reasonable, has investment value, and is expected to increase further.
Hundred times the coin standard!
First: It must be a new currency issued in 2022-2023; many friends do not understand why it is a new currency rather than an old currency. There is game theory involved. For an old project that has experienced a bull market and then a bear market, it is a huge blow to the confidence and faith of the currency holders. If you put yourself in the shoes of the project party, the capital cost of pulling up an old project is far greater than the capital cost of issuing a new project, and the new project has a new narrative logic; it is easier to pull up without a locked-in position, so the probability of success is higher if you choose the right new currency; and it also needs to have gone through a long period of bottoming out, and the bottom monthly line level has had a large-scale pull-up with signs of major funds absorbing funds.
Second: It is best to change the production and lifestyle of all mankind with unlimited imagination space; disruptive and innovative technological revolution, such projects can gather strong consensus. For example, ChatGPT launched by OpenAI in 2023 brings disruptive and innovative applications of artificial intelligence. In short, it needs the capital support of the world's top investment institutions; institutions have better comprehensive judgment ability on technological revolution than ordinary people, and are more likely to form a herd effect.
Third: A market value of less than 100 million US dollars is most suitable. A small market value is a prerequisite. The probability of a market value greater than 500 million US dollars is very small. Secondly, the fundamentals must have the investment background of core well-known institutions in the circle and the empowerment of top IP traffic.
Fourth: Timing is very important. First of all, a good environment is needed. It should be at the end of the bear market and the beginning of the bull market. How to judge whether it is a bear market or an early bull market? The reference standard is the monetary policy of the Federal Reserve. If the interest rate hike is coming to an end, the market may bottom out in advance and start a new round of market. At present, the Federal Reserve interest rate has reached a high level, and it is imminent to stop raising interest rates. As for when to enter the interest rate cut cycle, it mainly depends on whether inflation has dropped to 2%. For the medium and long-term layout of 100 times B, the time should be at the end of 2023.
Fifth: During this period, focus on high-quality projects with high market attention and investment from well-known institutions. For example, the Ethereum Layer 2 network in the market is a sector that major investment institutions focus on, such as the AI sector, L2/metaverse applications, games, defi, and Hong Kong sectors. Select ten projects for in-depth exploration, sort out the founding team of the project, which investment institutions are behind it, and deeply analyze how the upstream and downstream of the project are applied. It is best to experience the process of the project yourself. Generally, good projects have interactive airdrop rewards.
Sixth: As the saying goes, good projects bring their own traffic, so all the major exchanges must be vying to list their coins. So we need to see whether the project is listed on the world's largest exchanges, including B'an, Coinbase, OKX, etc. The exchange is the traffic entrance; those that are not listed are not considered. Because even more professional institutions than us have not discovered good projects, there is no need for us to waste time. Not to mention the copycat projects, especially the projects of Chinese people. There are too many IQ tax fraud projects in the currency circle. The project party's packaging is exaggerated and hard to guard against. Many people cannot distinguish. If ordinary people want to dig deep into the founding team and investment institutions behind it, they can use the chatgpt software to complete the background investigation of the project before considering whether to invest or not, how much to invest, etc.
Seventh: The iron rule of making money in the cryptocurrency circle is to speculate on new things instead of old ones. In essence, it is a new storyline and a new narrative. The team's early creativity and cohesion are also the best period. The shortcomings of the project are not exposed, which easily opens people's imagination. Of course, it is not that old projects will not bloom, but the probability is very small. This is true for companies and people.
After we screen out projects with 100-fold potential, we will create a self-selected
How many coins have increased 100 times in the last bull market?
During the last bull market in 2020-2021, 61 100x coins appeared among the top 600 cryptocurrencies by market capitalization.
What are the characteristics of 100x coins? The 100x coins in each bull market may be slightly different, but for us cryptocurrency investors, the important thing is to know that 100x coins are not myths or fairy tales in the cryptocurrency world, but real things that will happen. The probability is not low. 61 of the top 600 coins appeared. However, as the market matures and supervision is gradually in place, the probability of 100x coins appearing will theoretically become lower and lower.
How to find the next 100x coin? Understanding the market pulse is the key
Of course, it is not easy to find a 100x coin, but there are some ways to increase the chance of encountering a 100x coin. Here we use two methods to try to screen out potential 100x coins, one is market capitalization, and the other is track category. The first filter to find 100x coins: Market capitalization MC / fully diluted valuation FDV
The current total market value of Bitcoin is about 500 billion US dollars. If it increases by another 100 times, the market value will exceed 50 trillion US dollars, which is more than twice the current supply of US dollar M2. Bitcoin will directly become the world's largest currency. The current total market value of Ethereum is close to 200 billion US dollars. If it increases by another 100 times, the market value will be 20 trillion US dollars. The total market value of Apple, the world's largest company, is only 2.6 trillion US dollars. The above two figures are meant to show that there is an upper limit to the market value. If the market value is already huge, it will become increasingly difficult to continue to rise. If you want to find a 100-fold coin that can rise by 100 times, it is unlikely to look for projects with a large market value.
Because cryptocurrencies have different issuance plans, in addition to considering market capitalization, it is sometimes more accurate to consider FDV.
Market value MC = coin price x circulation
Fully diluted valuation (FDV), coin price x includes the maximum issuance amount to be issued in the future
How big a market capitalization is considered too big?
A more conservative way of estimating is to refer to the market value of similar leading companies during the last bull market, and then divide it by one hundred.
Suppose you want to find the next public chain project with a hundred times return, refer to the leaders of the same category. Currently, the leader in the public chain field is Ethereum. The other top projects include BNB, ADA, SOL, etc. Refer to the highest market value of these public chain projects in the last bull market. At that time, the highest market value of Ethereum reached about 500 billion US dollars, and the others were about 70-80 billion US dollars. Conservatively grab the low point as a reference, 70 billion US dollars divided by 100 = 700 million US dollars. The first filtering indicator comes out, looking for public chain projects with a current market value (MC) below 700 million US dollars. To be more conservative, it is best to find a fully diluted valuation (FDV) below 700 million US dollars.
If there is no maximum issuance limit and no FDV value for a project, you must pay close attention to the token issuance status of the project. Is inflation serious? If the issuance is not well controlled and the issuance is too fast, even if the market value increases in a bull market, it may be due to the increase in the issuance quantity rather than the increase in the coin price.
Exceeding this value does not mean that the price will not rise, but it means that because the market value is already too large, it is more difficult to reach a hundred times the price. Different categories have different market sizes and can bear different market caps. The 700 million in the example is calculated based on the public chain category. It is recommended to refer to the calculation of similar leaders for projects in different fields.
