Weekly Crypto Report

April 04, 2021

Good morning/evening/night guys. As every Monday, find here your weekly dose on market analysis, the most relevant industry stats, and our best tips to profit from this exciting market while learning from it!

Bitcoin

We can see how it's struggling to hold the key $58,000 level we commented, and after the breakdown under it, it's been retested as resistance. Tracking the consolidation shape from here, but again not really interested in these moves for minor timeframes.

From the macro perspective, this consolidation keeps looking really bullish to me and I continue holding all the BTC positions. But now that the Bitcoin Dominance broke down the key 60% support and it's testing new yearly lows, my focus will continue into altcoins. A breakdown of it under the 57% level will be the final signal for a full bullish reversal on altcoins:

Big Caps index

ETH already opened the can and it's dragging the rest of the big caps. As you can see on the altcoin index, we had two key breakouts on the falling wedge and horizontal resistance, now this new leg is consolidating nicely into a bullish pennant. The action is and will be here:

Mid Caps index

We can see how they keep pushing and pushing for the breakout over the key 3,200 sats resistance level. As we have been commenting, the breakout over it will be the key signal to point for the bullish reversal.

Crypto Stats

Poolz IDO's Performance

  • HAPI: HAPI, an on-chain security protocol that tries to solve cybersecurity issues in DeFi space by creating trustless oracles is in 1st place in terms of IDO's conducted on poolz with an ATH ROI of 2970%.

  • BOTS: BOTS, an ecosystem that allows traders to earn money on their trading strategies by selling them in the marketplace is in 2nd place with an ATH return of 2740%.

  • LABS: LABS, the world's first ened to end the real estate investment ecosystem by fractionalizing real estate investments is in 3rd place with an ATH ROI of 2380%.

Will cryptocurrencies replace cash?

  • In a survey conducted by Deutsche Bank of 4700 millennials, more than 43% of people from the USA believed that cryptocurrencies will ultimately replace cash. In France, more than 39% of people agreed while in Spain 35% believe that cryptocurrencies will replace cash. An average of one-third of people from 8 countries agrees with this.

  • The older people they surveyed had fears about cryptocurrencies, found them harder to understand, believed this is just a bubble and will burst soon. 

Fiat vs cryptocurrencies circulation

  • In terms of total currency in circulation, Bitcoin is one of the major currencies in the world, after the US dollar and the Euro. This is mainly due to vas increase in the price of Bitcoin. In early 2019, Bitcoin was only 3% of the US dollar in circulation but currently, it is above 40%.

  • Ethereum, 2nd biggest cryptocurrency is also in the top 10 currencies with more than 24 billion USD in circulation is also a sign of the expected dominance of cryptocurrencies in the coming years.

Top 10 coins mentioned on Twitter in March-21

Twitter is the most important social media tool to know the hottest cryptocurrencies in the market. On March-21, Bitcoin as usual is on the top with more than 7.8 million tweets while hitting a new ATH of $61,844. ETH is in 2nd place with 1.1 million tweets in March-21 while DOGE is in 3rd place with 986k tweets.

PancakeSwap Token (CAKE) is in 4th place due to its recent hype related to Binance Smart Chain. While POLS, which is also a new coin but keeping its place in the top 10 due to its IDO's buzz on Twitter.

Skin in the game

Be creative and original in your trading

Originality and creativity are the main factors that distinguish a high-performing trader from an average trader. You can not become an outstanding trader by just following the textbook stuff that 99% of the other traders know already. You need to be able to design your own unique trading strategies and find distinctive market opportunities that are not apparent to others. Those strategies or opportunities can be some patterns on the chart, that shift demand, and supply of the market, or it can be a combination of various trading indicators that may give you a profitable trading strategy that others don’t know. Creativity is mostly an intrinsic characteristic of a person but it can be developed by following techniques.

  1. Sustainable focus

Focus is something that can transform an average mind into a great mind. The more information you are able to process with focus, the more successful you can become. With an extreme focus, you might be able to find some unique patterns and spot some unique price actions that can help you in developing a new trading strategy.

  1. Digging deep into charting tools

There are several charting tools out there with thousands of indicators that you can use in your trading strategy. For example, while in leverage trading in small timeframes you might only want to long an asset if RSI is oversold, there is no bear diversion and the price is at some important Fibonacci level. You can combine various other indicators to find a winner for you.

  1. Finding price relationships

Finding price relationships between various assets sometimes gives you a new trading strategy to use. Like these days, Bitcoin is following major US stocks since March. On the other hand, the decrease in the dominance of Bitcoin market capitalization gives you an indicator of possible growth in the altcoins price. In the same way, you can compare various charts and price patterns and there are chances you might come to know a pattern that others are not yet aware of.

  1. Attention to detail

Attention to detail is very important in whatever you do. In basketball, running and defense while in football it's often the blocking and tackling that win the game which can only be done properly if you have done proper homework on every player of the opposite team. The same is the case with trading. An average trader might only look for a setup only but a great trader will have rules for processing, managing, and sizing the trade apart from the setup.

  1. Adapt to change

The market never remains the same, as a result, your profitable strategies become obsolete. But if you have the ability to adapt to the changing conditions of the market you can have an extra edge over other traders who are still trading the same setups and patterns that they were trading various years ago. It is an ongoing creative process that fuels our adaptation to evolving market conditions.

You need to have a sustainable competitive advantage over other trades that creativity can provide you. Always look for an edge, it will keep you one step ahead of others.

Have a nice day, see you soon!Rand