Weekly Crypto Report

November 21, 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

Bitcoin continues looking pretty weak here, Managed to save the main target support we were tracking on the $57,500 but after the rejection on $60,000 it's back to the support level again. As said continues looking pretty weak, which makes me think of a possible dive to $52,000.

Along with this, the Bitcoin Dominance it's unable to wake up and it's consolidating into a bearish descending triangle pattern, with a target on the 41-40% level

Big Caps index

Meanwhile, if we take a look into the Big Caps Index, we can see how continues struggling on the 33,000 sats horizontal resistance. But holding over the previous local downtrend, so let's continue tracking this (2 weeks already) consolidation to see what to do next:

Mid Caps index

The Mid Caps Index continues holding the main horizontal support like a beast on the 3,900 sats. Following with interest the consolidation here. It's been 2 continued months of a downtrend and finally, the sell-off seems to decrease. The risk/reward is also pretty good so I continue tracking closely waiting for the moment to jump over it:

Crypto Stats

Number of Bitcoin Addresses Holding > 1000 BTC

BTC after reaching $69k ATH, retraced back to $55.6k on 19th November. Whales that are holding more than 1000 BTC increased from 2151 to 2174 addresses from 16th November to 20th November which suggests that thousands of Bitcoins were bought by Bitcoin whales and can make $55.6k short term bottom.

Stablecoin Lending Interest Rates comparison with US Bonds Yield

The Cryptocurrency lending industry is growing at such a staggering rate. It is because of the fact that stablecoin lending yields more than twice as much as US junk bonds and almost 150 times as much as the average US savings account.

Top Fundraising by Blockchain Startups in Last Week

ConsenSys:ConsenSys, a company that develops and invests in the ethereum blockchain, has raised $200 million from investors including HSBC, Coinbase Ventures, and Marshall Wace.

StarkWare:StarkWare, an Ethereum Layer 2 developer using ZK-rollups technology, has raised $50 million in a Series C funding round.

BetDEX:BetDEX, a nascent sport betting exchange founded by three former FanDuel executives, has raised $21 million in a seed funding round.

Top 10 coins mentioned on Twitter Last week

BTC:Bitcoin is on the top of the list with more than 2.8 million mentions on Twitter last week while it dipped to $55.6k during the week.

SHIB:SHIB is in 2nd place with more than 706k mentions on Twitter while its price dropped more than 23% during the week.

ETH:ETH is in the 3rd spot this week with 593k mentions on Twitter while its price dropped to $3.95k during the week after reaching new ATH in the earlier week.

Skin in the game

Finding the root cause of your trading problems

Diagnosing a problem is more important than solving it. Sometimes you don’t know the actual problem and start trying new things to solve it just to complicate the problem further. Even some mentors start giving advice to the individuals without understanding their real trading problems which doesn’t help them at all. We have to find the real problem in our trading first before looking for its solution; like a doctor first try to diagnose the real disease by different tests or by asking you various questions. We are going to use the same methodology here today to diagnose your trading problems to know what you are doing wrong. Here are a few of the questions that you need to ask yourself.

  1. Does a problem really exist?

The question might seem strange to you but an important one. There is a possibility that there is no problem at all like but you imagine so. You might have lost a few trades recently but that might be a small sample size. What you need to do is to compare your trading performance of the past few months with the earlier one of even with last year. If you are improving then you might don’t have to worry about it much. If you are using a good risk/reward ratio in your trading then only a 50% win ratio can make you high profits. Without comparing past results if you start finding a solution you might even dump the actual trading system that was making you profit.

  1. Is the problem associated with the change in the market?

There is a possibility that the market has been changed and your high win ratio trading methods no longer provide you with the same results. If you feel so, you need to discuss various other traders who were using the same trading methods. If most of them feel that it's the market that has changed then you need to analyse the market and adjust your trading strategy accordingly. Adapting yourself according to market situations and changes is very important because a trading strategy won’t always work. Like during the summer there is a time when volatility in the market drops significantly but if you will still try to trade as you did during a volatile market then you might end up hitting your stop loss more often than before.

  1. Is it a personal problem?

This is one of the most important questions you need to answer and you have to be honest while answering it. You might feel depression, frustration, anxiety or anger while trading and the same problem is impacting your non-trading life then you need to look into it seriously. An example can be your impatient behaviour with your personal relationships and with the market as well. Or you have no control over your emotions which is causing problems for you in your personal problem as well as in trading. Personalizing things in your non-trading life and personalizing your trades is another issue. Be honest in diagnosing this problem and try to get rid of it. If you are unable to do it yourself then you should consult some psychologist to help you out.

  1. Is your trading technique right?

This is the kind of problem which is faced by newer traders. They might be dealing with emotional as well as technical problems at the same time but they need to be distinguished between both to solve them individually. There is a possibility that you are reading a trading indicator in a wrong way or incorrectly placing the Fibonacci levels on the chart which will affect your trading performance. You need to always do deep research about an indicator or a trading technique you are going to use as half knowledge is more dangerous than ignorance. It’s always a good idea to have a trading mentor who can pass on his personal trading experience to you and polish you to become a successful trader.

Rand