Weekly Crypto Report

April 25, 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

Today we are waking up to a nice pump after a precise test of the $47,000 range we commented the last week. And already teasing with the $52,000-$53,000 level which was the previous key support, and now could act as resistance.

I would start thinking about a possible bullish reversal in the short term if consolidates above $53,000. But not earlier. From the mid and long time perspective, this bounce is positive and shows strength when needed, but still, I wouldn't become full bullish here, at least not for now.

Besides that, I still think the altcoin market shows better plays than bitcoin for now. Even if the momentum is lagging, the bullish structure remains there, untouched.

let's take a look into Bitcoin Dominance.

It keeps following the plan and dipping even further, during this weekend it breached down the key 52% support. From here it's on new lows discovery. It's been more than 2 years since the BTC dominance was that low. 50% remains as psychological support, but besides that, not a strong level.

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

Big Caps index

Meanwhile, the Big Caps Index as we commented also the next week keeps looking amazing and I still not seeing any reason to be scared. Even the latest and sharper uptrend support continues holding.

If this push continues consolidating over the 21,000 sats range during 4-5 more days it would be primed for the final breakout and exit of the accumulation range for the first time in 2 years

Mid Caps index

The Mid Caps Index also looking amazing so far, fully recovered from the ugly dip of Friday. Managed to close over the local uptrend support and it's pushing again on the 3,800 sats range.

Breakout and consolidation over it would lead to the full bullish continuation, as commented last week I see no reasons to be worried, the structure remains to look great

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

Share of total stablecoins supply

Stablecoins supply has reached $75 billion currently from only $1.30 billion in 2017. In 2017 Tether (USDT) was the only stablecoin available in the market but now there are more than 12 stablecoins in the market and USDT is losing its dominance slowly and left with a 66% share of total stablecoins market supply.

While on the other hand USDC is gaining the market share due to its adoption by various platforms and standing at 2nd place currently with more than 17% market share which was only 7.29% in its year of launch 2018. BUSD is in 3rd place with an 8.91% market share.

Transactions on the Ethereum Network

Ethereum network is experiencing exponential growth lately due to Decentralized Finance (DeFi) boom in last year. In March-2020 transaction count on the Ethereum network was 22.75 million which is increased to 39.24 million in March-2021.

The April 2021 count has already crossed 33 million and is expected to close above 41 million transactions which is more than an 81% increase in last year. Price of Eth on other hand and grown big-time from $86 in March 2021 to $2644 in April 2021.

Silvergate Fee Income from Digital Currency Customers (Quarterly)

Silvergate, a leading provider of innovative financial infrastructure solutions and services for the growing digital currency industry has made exponential growth in their fee revenue in the 1st quarter of 2021.

The company reported revenue of $7.1 million in the 1st quarter of 2021, which is 86% higher than the last quarter and 318% higher than the same quarter of last year. Bitcoin price growth and user growth are one of the major reasons for the increase in fee revenue.

Top 10 coins mentioned on Twitter last week

Twitter, the most important social media platform for cryptocurrencies made a huge buzz about the market last week. Bitcoin, that dropped below 47k for a couple of time in the last week was mentioned 1.7 million times on Twitter.

In the second place, there is a new coin SAFEMOON made 1300% gains and then dropped back 90% and gained lots of hype on Twitter. Doge was again hot this week reached a new ATH price was mentioned more than 1.3 million times on Twitter. PancakeSwap Token (CAKE) is in 4th place due to its recent hype related to Binance Smart Chain

Skin in the game

Things to avoid to stay focused in trading

Focus is the thinking skill that allows people to begin a task without procrastination and then maintain their attention and effort until the task is complete. Focus helps people pay attention in the midst of distractions and setbacks and to sustain the effort and energy needed to reach a goal.

But there are situations when you are focused in the wrong direction. I would like to identify a few situations that can lead to poor trading performance because they create a focus on explicit thoughts instead of rational thinking.

  1. Strong Opinion

People who tend to create a strong opinion about the market direction can find themselves on the wrong side of the trades. In this scenario, they become over-concerned about factors that aren't backing their opinion and only look for details or information that can support their opinion, resulting in skipping the important information or data which was against them. In other words, they emphasize more on what should be happening rather than what is happening in the market.

  1. Higher Focus on Profit/Loss

While trading few traders sometimes focus too much on profitability and others too much on losses which can result in a diversion of their attention from the market and they no longer have an actual feel for the market and can’t see the patterns in the market that may evoke or stimulate their intuitive feel. Trading is not about focusing on the profit or loss, it’s a whole process that you need to focus on and once you start understanding the market, the profit will automatically start coming your way.

  1. Tunnel Vision

Tunnel vision is the tendency to focus exclusively on a single or limited objective or view. Patterns that create our feel for the market only become visible when we see the market in unique ways. Sometimes we get trapped in a market or in a particular time frame resulting in skipping the patterns that are occurring in the market or in other time frames. This way they overlook a bigger picture of the market and result in missing some very important information, data, or patterns and may result in losses. So always keep an eye on various dimensions of the market as well as on time frames to stay competitive.

Trading biases and less information about the market can result in making decisions that may prove bad for you. To get your intuitive thinking to work properly, you need to first absorb the complete information about the market, indicators, various time frames and then your mind will be able to process it in a true way.

Have a nice day, see you soon!Rand