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

BTC keeps struggling now to hold the local uptrend support...I continue not confident for now. The good news is that the $35,000 horizontal support level continues pushing the price and holding.

Anyway, the response on the given level is getting weaker and the volume pressure keeps disappearing. I remain mostly on USDT and waiting for this BTC squeeze to be solved:

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Big Caps index

Meanwhile, the Big Caps Index continues responding positively after the breakout of the key horizontal resistance we commented on last week on the 33,000 sats.

A possible retest of the 36,000 sats level. The volume continues dropping reaching yearly lows here. Still not confident:

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Mid Caps index

Mid Caps Index showing a similar scenario to the Big Caps. Breaching the 5,700 sats resistance range and looking to consolidate over there. I still not confident due to the weak consolidation and lack of volume. But I don't see reasons to panic either. Tracking closely

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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

Monthly trading volume on DEX Exchanges in 2021

In the current year, monthly trading volume on DEX exchanges reached a new ATH in May to $161 billion from $138 billion in April; a 16.6% increase in one month. Dex exchanges have gained 157% volume in May in comparison with January-2021.

DeFi projects are one of the main catalysts for this significant increase and more awareness among people as you remain in control of your funds while trading on DEX exchanges.

Top 10 projects by the number of holders on Binance Smart Chain

SafeMoon: Safemoon a very hyped project on social media that made significant gains last month with a current market cap of $2.37 billion has the highest 2.3 million holders on Binance Smart Chain.

Pancakeswap: Pancakeswap is one of the latest DEX exchanges with a $3.23 billion market cap, mainly popular due to Binance Smart chain projects trading have 379k holders on the BSC chain.

Trust Wallet: Trust wallet token that provides a range of benefits and incentives to Trust Wallet users is ranked on 3rd place with 226k holders on binance smart chain

Top 10 Coins mentioned on Twitter last week

BTC: Bitcoin that is trading within a small range in last week is on the top of the list with 2.4 million mentions on Twitter in last week.

DOGE: Doge that has gained significant attention on social media lately mainly due to Elon Mask is in 2nd place last week for being mentioned on Twitter 703k times.

CAKE:CAKE has gained huge attention lately due to a high number of projects being launched on the Binance smart chain as it is the main hub for trading BSC chain coins.

Top Blockchain by Average daily development activity on Github (last 30 days)

ADA: Cardano that lost its first spot last month has gained again with a significant increase in activity on GitHub.

DOT: Polkadot that had beaten the ADA last year is in 2nd place with strong development activities and is one of the reasons ranked in the top 10 coins with regard to market cap.

KSM: Self-described as "Polkadot's wild cousin" has achieved the 2nd position after beating ETH and is also ranked at 32nd place in term of market capitalization.

Skin in the game

Symptoms of Overconfidence in trading 

Confidence is necessary whether it is a matter of business, sports, job, or in any sphere of life. In trading, you also need the confidence to play with the market as you will only be looking to take risks and take action on any available opportunities if you have confidence. but sometimes you might turn that confidence into an overconfidence bias that may affect your trading performance in the long turn. 

A trader might not know about this shortcoming but overconfidence has symptoms that we will discuss today so you can evaluate yourself. 

Ranking yourself high 

People believe in themselves and are often proud of what they do and how they do but it can sometimes backlash on the. Staying humble with the market is necessary than anything else because it is not a friend of anyone. 

Overtrading 

Overtrading is another symptom of overconfidence bias whether this is about trading too frequently, making large trades, or taking uncalculated risks. If you have any of these symptoms you need to evaluate yourself. 

Bigger Position Size 

Position sizing is one of the biggest parts of risk management. If you are uncomfortable with your position when it is only a few percent down then it means your position size is bigger. Your position size should not be more than 4% to 5% of your trading capital. But if your trading position size is higher than this then it can be due to overconfidence bias.

High Leveraged trading 

The Crypto market is highly volatile. If you are using high leveraged trading it can destroy your account in a matter of minutes only. People with overconfidence bias tend to use high leverage and end up getting liquidated. 

Illusion of control 

Some traders think they have control over markets and it can be dangerous as they will wrongly assess the risk involved with a particular trade. If you fail to accurately assess risk, you will fail to adequately manage risk and might end up being on the wrong side. 

You might not want to accept this but no one is perfect. You can not fight with your bias but at least you can face and accept them. That is only when you will develop a defensive system against them. You need to be realistic about your abilities and about the market, otherwise, overconfidence will eat up your trading account.

Have a nice day, see you soon!Rand