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

After the Bitcoin push during the weekend it's correcting heavily breaching down two key levels. The local uptrend support and the the horizontal range on $58,000.

As commented the last week, this breakdown makes me bearish on the short term for Bitcoin, with targets on $53,000 first. From here if doesn't hold I would aim for $47,000.

But again, and as commented the last week, even if I'm bearish on BTC for the short term I'M NOT looking to short it. Because that would mean to trade against the trend. The mid term and long term perspectives for Bitcoin remains bullish for me.

So in these cases I prefer to just wait and buy on the dips than challenge the market.

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Big Caps index

Now checking into the Big Caps Index to see the Altcoins scenario on the current context:

As reminder for new members, this Big Caps Index is a custom chart I've made by averaging the influence of the next coins: ETH, XRP, LTC, BNB, EOS, TRX, XLM, ADA, LINK.

As we can see, the breakout of the main falling wedge is struggling to consolidate. To hold the 15,000 sats level would have been the ideal. But well, at least it's holding the previous lows on the 14,000 sats, which makes it to continue alive for now.

I still thinking that the risk/reward here is pretty good. Not rushing into entries, because as always, I prefer to enter with more confirmations even if that means to jump later.

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Mid Caps index

Following with the altcoins analysis now is time to take a look into the Mid Caps Index, this index average the influence of more moderate market cap coins like ADA, VET, ICX, ZRX....etc

Here what we can see is that sadly it missed the confluence of uptrend support with horizontal support. Which makes me to stay away for now, and reason why I haven't been sharing much calls despite the IDO's.

Now the 2,400 sats support it's the most relevant level to hold, historical support. If we reach that range I will be looking to accumulate with mid term perspective.

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Crypto Stats

Bitcoin Balance on Crypto Exchanges

After making an all time high of 300k at the start of last year Bitcoin balance on exchanges is on decline. There is decrease of almost 18% in last one year which suggest that institutional investors BTC buying is on the rise.

Decrease in balance on exchanges is also positive for Bitcoin price as you can see BTC has gained about 1300% since the drop of price under 4k in Mar-20.

Recent Fundraising by blockchain startups

• Arianee: An Ethereum-based project for tracking the provenance of luxury brands, has completed $9.5 million seed funding round with the help of French Public Investment Bank and ISAI fund.

• Fetch.ai: Blockchain machine-learning platform Fetch.ai rasied another $5 million from an insitutional investor GDA Group for further research and development of Fetch's existing and future applications.

• Illuviumic: Illuviumic has raised $5 million to build a platform that combines non-fungible tokens, with a fantasy battle game with the help of various funds such as GSR, Spartan, CoinFund, Connect Capital and many others.

Top Excheange Tokens on BSC

According to Defistation data, Pancakeswap is on the top of table in terms of total value locked on Binance Smart Chain mainly due to the launch of various new tokens on Binance Smart chain and support from PancakeSwap.

JulSwap is on the second place with $72.80 million value locked on BSC, followed by BakerySwap and 1inch with $25.50 and $20.50 total value locked respectively.

Top 10 coins mentioned on Twitter this week

Twitter is a top social media tool to know the hottest cryptocurrncies that are making some real moves. In current month Bitcoin as usual is on the top with more than 2 million tweets while hitting a new ATH of $61,800.

Doge is on the 2nd place with 317,117 tweets while ETH is on the 3rd place with around 25% gain this month. PancakeSwap Token (CAKE) is in the top 10 list due to its recent hype related to Binance Smart Chain. While POLS, which is also a new coin but keep its place in top 10 due to its IDO's buzz on twitter.

Skin in the game

Money Management in trading

Money management is a necessary part of trading and will keep you profitable if done in the right way. If you give the same profitable setups to various traders then all will end up with different results. One might be enjoying profits and others making losses or one might be in huge profits and others might be struggling to secure the initial capital even. This is where money management plays a role.

Profit maximization and risk mitigation is the main purpose of risk management. This is where you decide how much capital you should risk on each trade as capital preservation is as important as generating a profit. Let’s take a look at some of the fundamentals of money management. 

How much to invest in trading?

This is where money management starts. You cannot invest $25,000 if your bankroll is $30,000. It’s just not about trading, it's about any business you are looking to start. Never put all eggs in the same basket as you might end up getting bankrupt. The better choice will be the $5,000 to invest in trading if you have $30,000 in your bank and later you can reinvest your trading profit to increase the size of your trading account or can add further later from your bank to fulfill the leveraged trading needs. 

The next question is how much trading capital you should invest in your individual trades? It can vary from one person to another but as per my personal experience, you should not invest more than 2% of your trading capital in any trade regardless of the expected profitability from the individual trade. 

How much to trade each day?

Overtrading can be profitable for a short time but not on a long-term basis. To avoid overtrading you need to fix a percentage of your trading capital you should trade each day at maximum. As I have said earlier you can use a maximum of 2% of your trading capital on individual trade but it doesn’t mean that you end up taking 10 trades each day. Limit yourself to a maximum of 3 to 4 trades per day when you are using 2% per trade. It will keep your daily trades volume less than 10% of your trading capital. Also, on the other hand, define a limit of open trades in your account and look to close them before opening the new ones. 

Acceptable risk level

Cutting losses is very important for proper money management as you will need to gain 1000% to get back to breakeven on a trade if it goes into a loss of 90%. You should set your stop loss points in advance considering your risk appetite. Stop-loss can be based on a percentage of your trade like you might want to get out of a trade if it goes north by more than 5% or you might set up a stop loss on the basis of technical analysis. Once defined a stop loss should never be moved if the trade is going in the opposite direction in the hope of recovering it. Make a plan and follow it. 

Securing the profit

Securing profits is also an important part of money management. Profit is never yours unless you book it. Some traders do not book profit on their designated targets in a hope that the price will further move in their favor but it might come back and you will end up making a loss. So always execute the plan as defined with no exception. Discipline will make you a successful trader. Stop trail your profits so you can take the maximum out of a trade. Another important thing to mention here is to do not keep increasing your trading capital with the profits you generate from trading. 

Have a nice day, see you soon!Rand