Weekly Crypto Report

August 15, 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

It reached already the first target we commented on 2 weeks ago and it's looking to consolidate over it. I consider it really important to have at least 3-4 daily candle closes over it ($46,500). Given that we could consider it a proper consolidation and get ready for a further bullish leg with the target on the $52,000 area.

On local timeframes is printing an uptrend channel which is being respected so far. The structure remains pretty vertical, a little bit of sideways consolidation would be really positive given it was skipped on the previous move. The more it takes to consolidate ranges horizontally, the riskier it will get.

But so far no reasons to be concerned.

Meanwhile the Bitcoin Dominance following the exact steps we commented after the rejection on the uptrend support test as resistance now. Freefalling and even missing the local horizontal support. This is pretty positive for altcoins. I think we can even revisit 40%-42% from here. And this would ignite the Big Caps Index breakout on the commented ascending triangle. Another signal to track closely for confirmation:

Big Caps index

Now taking a look into the Big Caps Index we can see how amazing is looking, here we are getting the horizontal range consolidation I was commenting about BTC. Also on local timeframes respecting the uptrend support while squeezing into an ascending triangle. The setup is looking amazing and shows really great risk/reward on most of the pairs indexed here.

As during last weeks, the action will be on the altcoins, don't miss it:

Mid Caps index

If we check into the Mid Caps Index we can see how the crazy breakout we have been trading for two weeks is not looking to consolidate on the upper range. As commented with BTC, will be really great for its performance to consolidate this range for few days, allowing the volume to kick in and build the next leg properly. So far 5,400 sats support is working amazingly and showing strength.

Crypto Stats

Top Banks Investing in Crypto and Blockchain Companies

More than 55% of the world's top 100 banks have invested in crypto or blockchain companies.

Standard Chartered: Standard Chartered is on the top with a $380 million investment in 6 crypto/blockchain companies Ripple, Cobalt, Dianrong, Metaco, and Linklogis.

BNY Mellon: BNY Mellon bank from the US is in 2nd place with $321 investments in 5 crypto/blockchain companies Fireblocks, HQLAx, R3, and Finality International.

Citibank: Citibank is in 3rd place with $279 investment in crypto or blockchain companies such as Buck, SETL, Axoni, Cobalt, R3 Komgo, Chain, and others.

Coinbase Revenue Growth

Coinbase, which was listed on Nasdaq at the start of this year has made exponential growth in their revenue in the 2nd quarter of 2021. The company reported revenue of $2.2 billion in the 2nd quarter of 2021, which is 22% higher than last quarter and 1080% higher than the same quarter of last year.

Bitcoin price growth and users growth are one of the major reasons for the increase in revenue.

Ethereum Balance on Crypto Exchanges

Ethereum balance on crypto exchanges is on the decline this year. In last year it went up to 22 million and at the start of the current year, it was standing at 18.4 million. But due to the high institutional demand of Ethereum, its balance on exchanges reached 10.56 million in July-21. Ethereum supply on exchanges hasn’t been at such low levels since 2018 which is a bullish signal for Ethereum.

Top 10 coins mentioned on Twitter Last Week

BTC: Bitcoin is on the top of the list with more than 2 million mentions on Twitter last week while its price reached $48k another time this year.

ETH: Eth is in 2nd place with more than 570k times mentioned on Twitter while its price reached $3.3k after gaining more than 10% in the current week.

DOGE: Doge again in the top 3 after more than 482k times mentioned on Twitter last week while its price reached $0.31 after gaining more than 27% last week.

Skin in the game

Three important questions to answer before trading

It is very important to find a trading style that suits you. Like everyone’s eating, clothing, sleeping, gaming habits differ from others, in the same way, everyone has different risk appetites, work schedules, and preferences. To take trading as a serious business, you need to develop your own way of approaching, understanding and analyzing the market that you will develop over time through your experience.

You need to answer 3W’s about yourself to start understanding yourself and designing your trading style

  • Why do you want to trade?

This is the most important question as everyone has different goals. Whether you want to trade to achieve financial freedom or looking to trade to make a side income. Want to be your own boss or looking to travel around the world and want to make money at the same time. Whatever the reason, you need to define it first hand. It will not only help you define your trading goals but will also allow you to know what trading style best suits you.

  • When can you trade?

This is also very important to define as if you are a part-time trader you might be able to trade for a particular time of the day, and your sleep timings and daily routine also matters a lot to take up a trading style that will keep you in profit without disturbing your routine. It will help you to know if scalping, day trading, swing trading, or position trading is better for you. Scalping is a very fast trading style, as scalper’s trade on low timeframes. They might open a short trade and then within a few seconds, might be long on the same asset. On the other hand, day traders trade on 1 hour to 2 hour timeframes, as they look to close the trade on the same day. Swing traders style suits the best to the one who cannot give much time daily and trade on 6h to 1d or higher timeframes. While position trading, a style where you take a trade for months to years, will suit the one who cannot give time to trade daily and is very patient by nature.

  • What do you want to trade?

This is another question that you need to answer before you jump into your trading career. You should trade the assets where your interest is. Some want to trade cryptocurrencies, others want to trade forex pairs and some would like to trade stocks. It’s all about where your interest exists as you will have to understand and follow the market. If something doesn’t interest you, then you will not be able to concentrate and might end up being on the losing side.

Answering these three questions will lead you to the style you belong to. These are all starting points and the most important thing is how to be profitable which you will only learn over time with your experience and testing different trading setups for 100’s if not 1000’s of times. Do not follow others as you do not know their position size, stop loss, and take profit levels and his risk appetite. Develop your own style by starting with paper trading at first, and you will know how to make profits.

Have a nice day, see you soon!Rand