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

During this weekend it took another hit but didn't push for new lows, something positive at least. Seems like $34,000 is starting to consolidate as the key horizontal support.

As you can see, the daily close of the last 5 days, managed to cut the day over that range even if during the day it was tested or close. THIS is what I mean when I say "waiting for consolidation" or "waiting for more signals" Instead of rushing into early trades, let the market give you more information about what's going up.Now we can also see how this consolidation, after 2 weeks of downtrend is getting closer to the downtrend resistance. So now, might be the time to start paying attention to BTC.

But again I’m still not interested and I will continue waiting. Bottoms need proper consolidation. It's always better to jump in later but with info, than early without it. Even if you see BTC "pumping" today a 6% don't fool yourself thinking you missed a crazy move because BTC price it's down since every single buy during the last 2 weeks...

(click here for full image resolution)

Big Caps index

If we take a look into the Big Caps Index we can see how finally after one week the key support target on the 25,000 sats has been reached with top precision. From here your first thoughts could be "wow, then let's long everything x100 from here" but no. We still need consolidation here. For now the response it's being good on the key levels, but we still need for the bottom to continue consolidating, maybe as with BTC few more tests of this range....etc.

Volume-wise we remain on a full downtrend and registering really low volumes, big pockets are not accumulating for now either. I continue tracking but sitting on my hands for now trading-wise.

(click here for full image resolution)

Mid Caps index

On the Mid Caps Index after the first huge selloff, we saw how it recovered quickly but without volume pressure. The reason why I also recommended to be cautious and don't rush into new trades "buying the dip" frenetically as many were doing. The correction continued and it took a new dive to test the level we pointed to as the most relevant here: 4,700 sats. The response again there it's being pretty positive. Which is something really good to keep in mind.

These corrections, shakeouts...etc, and heavy fluctuations, which are critical for most traders, especially new ones, help to consolidate the moves. These moves give us the information to know if the market has found a bottom if another selloff will follow...etc. For this reason, after a big crash is really important to just observe, and avoid the rollercoaster of bounces, which tend to liquidate everyone.

A big crash brings big opportunities. But be patient, don't rush, let's analyze how the market settles down. During the last 4 months, we have made outstanding profits. Keep those profits and liquidity ready, soon we will have opportunities, but don't be greedy and push trades every single day. Respect the market and learn from it, don't try to submit it.

(click here for full image resolution)

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

Bitcoin Historical Corrections

Despite being one of the world's best performing assets, Bitcoin has suffered plenty of massive price drops. Government banning Bitcoin and hacks have caused many crashes.

After achieving +$64k price last month it has dropped around 51%. BTC experienced the biggest correction of 87% when it dropped from $1163 to $152 from Nov-2013 to Jan-2016. But the good part is it keeps pumping far higher than its corrections which keeps investor interested in it.

Cryptocurrency exchange volume

Cryptocurrency exchanges have experienced huge volume in the current year mainly due to a massive increase in the price of Bitcoin and other cryptocurrencies.

In December-2020, cryptocurrency exchanges had a volume of $417.77 billion which increased to $1,790 billion in May-2021 while still there is one week left. This massive increase in the volume indicating a huge increase in people's interest in cryptocurrencies.

Stablecoins supply on the rise

Stablecoins supply is on the rise since the launch of USDT. In the year 2020, stablecoins supply had exponential growth of 404% increase from $5.8 billion to $29.22 billion. In the first five months of 2021, stablecoins supply has been increased to $98.15 billion.

One of the main reasons for this increase is the increase in demand as more traders like to trade with stablecoins rather than Bitcoin and people are also transferring their profits to stablecoins after Bitcoin achieved a new ATH in Apr-21.

USDT addresses with balances over $X

With the increase in demand of USDT and the growth of Bitcoin and other cryptocurrencies, we have seen a massive increase in the addresses holding USDT. Addresses that are holding $1k to $10k reached 339,290 after a 122% increase from the start of the year.

While there is an increase of 96% in addresses containing more than $10 million from the end of December-2020. There were only 144 addresses that had more than $10 million USDT while currently, this count increased to 282 addresses.

Skin in the game

Best practices during the tumbling market

The market doesn’t remain in favor of you all the time so there are times when the market will go into a slump phase and won’t be good to trade anymore. If you keep trading during those times, you might end up doing huge losses and can make you frustrated which can result in indulging in further overtrading resulting in more losses. Despite indulging in trading, there are things that you can do which will not only save your capital but also will help you stay in the game for a long time.

Focusing on yourself

Step back from the trading desk and focus on yourself, renew your energy to get back harder when the market will be perfect for trading again. You can not only work on personal development but also should spend some quality time with your family. Going on a tour to hilly areas will also refresh your mindset and give you a nice pause from your daily routine. Other things you can do are to arrange some outdoor parties for your friends or you can go to the cinema for quick entertainment. Redesign your diet and workout plan to become healthy that will help have a strong body and a strong mind. Adding yoga to your workout is the best thing for a trader as it helps a great deal.

Learning

Learning is a necessary part of personal development. Never stop learning but during the tumbling market, you can focus on learning new things or researching various things that can not only improve your personality but also your trading knowledge to stay on top of your game. You can start developing new ideas and strategies by learning new things and can backtest them during this time, which will only help you become a better trader. Research and development keep a trader ahead of others because old trading strategies stop working when getting public and you can only stay in the game by continuously developing new trading strategies.

Resolve your problems

Everyone has to deal with some personal life problems that can be different for everyone. Some might have relationship problems and others might have some other issues that strongly make a negative impact on your trading performance. During this time you can work on getting rid of the distractions that keep pinching you while trading.

Socializing

Traders are not usually good at socializing because they keep themselves busy trading all the time but you should use this break to make new friends or should join some trading communities. This way you can learn new things from various people that you can later use to improve your trading strategies or can help you in generating new trading ideas. You might have extraordinary abilities to generate new ideas but there is always a limit and you should not be shy of picking good things from others.

Have a nice day, see you soon!Rand