Rekt Frens Documentation
  • 🐸 Introduction to Rekt Frens
  • 🙂 Anti-Fragile Community
  • Overview
    • 📄 What is ERC-404
    • 📜 What is DN-404
    • 👍 Benefits of DN-404
  • FRENS Token
    • 🧠 FRENS Usecase
    • 📈 FRENS Tokenomics
    • 💡 NFT Usecase
    • 📊 NFT Tokenomics
    • 🔄 Arbitrage Opportunities
  • Treasury
    • 💰 Community Treasury
    • ⚙️ Treasury Mechanics
    • 🤑 Revenue Share
    • 🛒 Buybacks
  • Investment Strategy
    • ↪️ Crypto Market Cycles
    • ⤴️ Altcoin Indicator
    • 💎 NFT Volume
    • 🌍 Social Media Charts
    • 🚦 Entry / Exit Signals
  • Community
    • 🙋‍♂️ X
    • 📺 YouTube Channel
    • 👾 Discord Server
    • 🌌 Galxe Campaigns
  • Psychology
    • 🐏 Herding Effect
    • 😓 Loss Aversion
    • 🤪 Overconfidence
    • 😵 Confirmation Bias
    • 🙈 Availability Heuristic
  • Sources
    • 🎯 Into The Cryptoverse
    • 🐲 Black Dragon
    • 💪 1000x Group
    • 💲 Dollar Vigilante
    • ₿ Crypto Vigilante
    • 🙋‍♂️ Crypto 𝕏
  • FAQ
    • ❓ Frequently Asked Questions
  • Official Links
    • 🤝 Socials
    • 🔏 Contracts / Wallets
    • 🔎 Audits
  • Rekt Frens Website
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  1. Investment Strategy

↪️ Crypto Market Cycles

Previous🛒 BuybacksNext⤴️ Altcoin Indicator

Last updated 1 year ago

Understanding crypto market cycles is critical to effective portfolio management and treasury strategies. Four key on-chain indicators for gauging market phases are:

  1. Price/Bubble and Price/Non-Bubble Metrics

  • Quantifies current price extension from red and green regression bands

  • Values near 1 indicate possible local tops or bottoms respectively

  • Shows decreasing amplitude in Bitcoin boom/bust cycles over time

  1. Total Cryptocurrency Market Capitalization Model

  • Logarithmic regression bands model overall crypto market cap over time

  • Upper band indicates regions of potential market cycle tops/bearish signals

  • Middle band provides a fair value assessment to identify bull/bear market modes

  • Lower band shows historical support levels that may signal undervaluation

  1. Bitcoin Price Logarithmic Regression

  • Logarithmic regression lines fit Bitcoin's price performance

  • Red lines fit 3 previous cycle tops to indicate possible future bubble peaks

  • Green lines fit non-bubble data to reveal prudent accumulation zones

  1. Relative Strength Index (RSI)

  • Measures momentum to identify overbought and oversold conditions

  • Divergence from price action signals potential trend changes

  • Failure swings above/below key levels flag impending market reversals