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 suffered a heavy drop, but to measure the damages we need to wait and see the bounce strength. The key lies in the $58,000 range.

As you can see we have broken down the local uptrend support developing for 2 months. Now we need to see how the price reacts to the confluence of that old support and the horizontal range.

If both become resistances with a heavy rejection we might have a further drop on BTC.

If instead, the price crosses those ranges or consolidates close to them we might have a local reversal and call the end of the correction.

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Meanwhile, the Bitcoin Dominance it already reached the target we were commenting on during the last week, smashing the 52%-53% support level. Now time to see the reaction to this key support.

A couple of weeks of consolidation here would be ideal to stabilize the ecosystem while letting the alts move on their own, let's see:

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Bitcoin dominance is described as the ratio between the market cap of Bitcoin to the rest of the cryptocurrency markets.

Big Caps index

we can see a minor shakeout but an almost instant recovery. The price continues holding amazingly and pushing on the local resistance at 18,400 sats. The index continues looking absolutely amazing to me, the 17,000 sats local support wasn't even touched. Again zero reasons to be concerned here.

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Mid Caps index

Switching to the Mid Caps Index we can see a similar scenario. Price got rejected on the last horizontal resistance but It didn't even test the local horizontal support at 3,800 sats or the local uptrend support.

Therefore, the index remains in full bullish mode and without any signal pointing for the opposite.

We might a small further correction/consolidation and it will remain bullish. The key here is to make the 3,800 sats level as solid new support to enable the next wave.

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The Mid Caps Index is a custom index of altcoins I've made where I aggregated ADA, VET, ICX, NANO, WAVES, BAT, ZRX, ONT, ZIL...etc, and their weight on the formula (chart) comes determined by their market cap share.

Crypto Stats

Stablecoins supply on the rise

Stablecoins supply is on the rise since the launch of USDT.

In 2020, stablecoins supply had exponential growth of 404%; increasing from $5.8 billion to $29.22 billion.

In the first four months of 2021 stablecoins supply has been increased to $74.12 billion.

One of the main reasons for this increase is the increasing demand from people as they like to trade with stablecoins more instead of Bitcoin now.

In 2017, stablecoins trading volume dominance was only around 5% which has now crossed 74%.

Coinbase Revenue growth

Coinbase, which has recently listed on Nasdaq has made exponential growth in their revenue in the 1st quarter of 2021.

The company reported revenue of $1.8 billion in the 1st quarter of 2021, which is 208% higher than the last quarter and 844% higher than the same quarter of last year.

Bitcoin price growth and user growth are the major reasons for the increase in revenue.

Grayscale Revenue from GBTC and ETHE making new highs

Grayscale, now holding more than $50 billion worth of crypto assets under management is experiencing fast growth in their monthly revenue from their GBTC and ETHE products. Their revenue has been increased from $4.60 million in April-2020 to $83.48 million in the same month of the current year which is almost a 1700% increase.

This increase is mainly due to an increase in Bitcoin and ETH prices which has attracted hundreds of institutions towards the crypto market, making it a fast-growing financial industry.

Ethereum Vs Competitors Market Cap

Ethereum which was launched in 2015, significantly changed the blockchain market dynamics by offering some great features like smart contracts.

Since then many competitors emerged but no one is able to match the popularity and growth it has shown over the years. Eth is standing at the top with a $249.32 billion market cap while the nearest one is Binance Coin after beating Cardano with a $72.51 billion market cap.

Cardano is standing in 3rd place with a $39.61 billion market cap. Polkadot which is one of the latest ETH competitors is already in 4th place with a $34.18 billion market cap.

Skin in the game

Trading the market dips

Price dips look lucrative by nature to a trader and can gain extraordinary profits if bought at the right time and at the right price but on the other hand, they can cause high losses as well. The most important thing while buying the dip is to control your emotions and don’t let them impact your trading because you might end up buying an asset in haste without considering the technical and fundamental aspects of the asset.

First, we need to find the reason for the dip of an asset as if the dip is driven by some fundamental news about the asset it will have different implications to the one driven by technical aspects.

Dip driven by fundamentals

Dip driven by fundamentals can cause a minor to a bigger dip depending upon the severity of the news. You first need to evaluate that news as if the news that caused the dip is of great importance for the asset; it can keep pushing the asset further down so an immediate buy will not be an option in that case. But if the news that caused the dip is of low importance, you can consider buying the asset but only after considering the technical aspects of the chart.

Dip driven by Technical aspects

These kinds of dips are mostly caused by the computer algorithms after reaching some strong resistance and supply area of asset under analysis. In that case, it will be a good move to buy the dip if it has already reached some good demand area.

Trading the Dip

To trade a dip you need to act as a disciplined trader. You can determine the best point to buy the dip by considering horizontal and vertical support levels, Fibonacci levels, and the demand area of the asset. You can also set the stop buy orders in advance after calculating the expected bounce level if you see an asset is about to reach a high supply area. But dips caused by fundamental news can have different price actions and you will need to manually enter in the trade after carefully evaluating the news impact and other technical aspects of the asset.

Risk Management

Risk management is also very important while buying the dip as assets can make your theory wrong and may result in huge losses if not managed properly. You need to determine the stop loss point in advance while considering entering a trade and proper trade sizing is also very important. You also need to set the exit points of a trade in advance to take the profit as profit will only be a profit if it is realized. If you will not set an exit point in advance then the asset can fall back and may cause huge losses for you.

As the saying goes, the market can remain irrational far longer than you can remain solvent so don’t expect anything good from the market while trading and be a disciplined trader.

Have a nice day, see you soon!Rand