Weekly Crypto Report

September 05, 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

Taking a look into BTC we have reasons to be bullish and excited again. During Yesterday's night Bitcoin managed to finally claim and close over the previous local high on the $51,000 level. And prior to that I broke and consolidate over the local downtrend resistance we were tracking too.

As commented during the previous week, the positive thing of this move compared to previous ones, is that this time we had two weeks of consolidations, which is enough to build a proper support. The next target on my scope is $53,000, key resistance coming from March-May months of action.

Something really positive besides this move, is the Bitcoin Dominance, which continued dropping a little bit more and continues teasing in the 41% - 40% which means oxygen for altcoins, As we will see on the next charts, this time, altcoins pushed along with BTC:

Big Caps index

As commented on the Big caps we can see how it pumped along with BTC and now is looking to consolidate. A retest of the 33,000 sats support would be amazing to look for new entries:

Mid Caps index

Meanwhile the Mid Caps Index as commented last week is struggling on this rising wedge formation, breached it down already but the horizontal support continues holding the structure. As we commented it needs a longer consolidation before the next step, the rejections on the 6,600 sats level have been strong. Even a retest of the 5,900 sats level would be really positive in order to lead fuel before the next leg:

Crypto Stats

Bitcoin Market Value to Realised Value

BTC MVRV tells the profit taking situation of the Bitcoin holders. BTC MVRV is calculated by dividing Market Value by Realised Value. In Realised Value, BTC prices are taken at the time they last moved, instead of the current price like in Market Value. Higher the value menas higher holders in profit. Currently it is at 2.41 after having bottom of 1.53 in July-21. In last one year it had a top at 4.01 value in Feb-21. Current 2.41 value suggest that there is a still cushion avialable for MVRV to reach Feb-21 top of 4.01 which will definitly take Bitcoin price to new ATH. MVRV also having a steady rise and not indicating any abnormal profit realised by people after bounce from $29k area.

Ethereum burned since London update

Since the London update on Ethereum network at the start of last month, more than 200k Eth has been burned todate in around 1 month only. The higher the activity on the network the more Etherum will be burned. During this period almost 250k supply increased while 200k burned which is very bullish for price as we have already seen Ethereum price was $3k when the London update arrived and since than Ethereum have touch $4k. It doesnt mean price will keep running like this crazily but it will certainly have huge impact on price on the long run.

Top 10 Staking Providers by Total Value Staked

Staking is on the boom these days in crypto. Following platform have the highest value staked on them.

  • Binance Staking: Binance a one of the top exchange in crypto industry is also on top in terms of crypto staking with more than $8 billion worth cryptocurrencies staked on it from 1% to more than 50% APY on various tokens.

  • InfStones: Founded in 2018 with offices across three countries and two continents, InfStones is the world's leading blockchain infrastructure provider and have more than $6.7 billion staked on their staking platform giving high APY to the stakers worldwide.

  • Everstake: Everstake is a staking service platform that helps institutional investors and token holders to profit off their digital assets have more than $5.5 billion worth cryptocurrencies staked on their platform currently.

Total Value Locked on Multiple Blockchains

Total value locked on multiple blockchains is on the rise lately. Ethereum is sitting on the top with significant margin at $129 billion TVL after a 33.3% growth during last 30 days. BSC is on the 2nd place with $27.53 TVL after an increase of 25.3$ during last 30 days. Terra which is becoming on of the hottest blockchain lately is on 3rd place with $7.55 billion locked after 55.1% increase in TVL in last 30 days. Solana had a growth of 207% in last 30 days with current TVL of $4.13 billion. Avalanche gained highest 952% TVL in last 30 days with current TVL of $3.08 billion.

Skin in the game

Be creative and original in your trading

Originality and creativity are the main factors that distinguish a high-performing trader from an average trader. You can not become an outstanding trader by just following the textbook stuff that 99% of the other traders know already. You need to be able to design your own unique trading strategies and find distinctive market opportunities that are not apparent to others. Those strategies or opportunities can be some patterns on the chart, that shift demand, and supply of the market, or it can be a combination of various trading indicators that may give you a profitable trading strategy that others don’t know. Creativity is mostly an intrinsic characteristic of a person but it can be developed by following techniques. 

  1. Sustainable focus

Focus is something that can transform an average mind into a great mind. The more information you are able to process with focus, the more successful you can become. With an extreme focus, you might be able to find some unique patterns and spot some unique price actions that can help you in developing a new trading strategy.

  1. Digging deep into charting tools

There are several charting tools out there with thousands of indicators that you can use in your trading strategy. For example, while in leverage trading in small timeframes you might only want to long an asset if RSI is oversold, there is no bear diversion and the price is at some important Fibonacci level. You can combine various other indicators to find a winner for you. 

  1. Finding price relationships

Finding price relationships between various assets sometimes gives you a new trading strategy to use. Like these days, Bitcoin is following major US stocks since March. On the other hand, the decrease in the dominance of Bitcoin market capitalization gives you an indicator of possible growth in the altcoins price. In the same way, you can compare various charts and price patterns and there are chances you might come to know a pattern that others are not yet aware of.  

  1. Attention to detail

Attention to detail is very important in whatever you do. In basketball, running and defense while in football it's often the blocking and tackling that win the game which can only be done properly if you have done proper homework on every player of the opposite team. The same is the case with trading. An average trader might only look for a setup only but a great trader will have rules for processing, managing, and sizing the trade apart from the setup.

  1. Adapt to change

The market never remains the same, as a result, your profitable strategies become obsolete. But if you have the ability to adapt to the changing conditions of the market you can have an extra edge over other traders who are still trading the same setups and patterns that they were trading various years ago. It is an ongoing creative process that fuels our adaptation to evolving market conditions. 

You need to have a sustainable competitive advantage over other trades that creativity can provide you. Always look for an edge, it will keep you one step ahead of others.