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

Bitcoin is looking pretty great here and I would consider a re-entry for the short term. On local time-frames defended really well the key $34,000 support we have been tracking for weeks. Also respecting the local uptrend support.

I think we are going to bounce from here. Not sure how strong it would be. The key resistances remain on $41,000 and $45,000-$47,000. Those will remain the key levels that will decide the future of BTC in the mid-term. But for now, I think we are up for recovery during this week.

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Big Caps index

Checking into the Big Caps Index we can see how on local timeframes we are getting a small breakout on the downtrend channel. Still, the main downtrend resistance is not breached yet. The volume remains on full downtrend mode, so I wouldn't get too excited here.

If BTC manages to push for the recovery I think Big Caps will be mostly followed without major corrections like in previous times. Tracking closely but not looking for reentries here, for now.

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Mid Caps index

If we check into the Mid Caps Index we can see how there are also chances for recovery but It's still too soon to decide. On local timeframes, we can appreciate two contradicted patterns, the descending triangle which tends to be bearish, and the inverted H&S which tends to be bullish.

The volume also continues on a full downtrend and reaching a final squeeze. I think this week we will have some action here. Tracking the signals for the direction. No need to rush into early positions for now.

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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

Stablecoins supply reached 100 billion mark

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 current year, as of 30th May 2021, stablecoins supply has been increased to $102.60 billion. One of the main reasons for this increase is the increasing demand from people as they like to trade with stablecoins more instead of Bitcoin now.

And another major reason is the people transferring their profits from Bitcoin and other cryptocurrencies to stablecoins.

ATH ROI of Top IDO conducted in May

BSC: BSC a next-generation DEFI platform with an Ecosystem launcher backed by the likes of NGS ventures and MAGNUS Capital has achieved the highest ROI of 128x in May-2021.

PNODE: Pinknode empowers developers by providing node-as-a-service solutions backed by SIGNUM Capital and others that have achieved 24x ROI in IDO's conducted in May to secure 2nd place.

O3: O3 Swap which is a proprietary cross-chain aggregation protocol backed by Consensus Lab has achieved 18x ROI among the IDO's conducted in May-2021.

Monthly DeFi Revenue on the rise

Over the last 1-year DeFi segment of the cryptocurrency industry has made exponential growth. The total value locked on DeFi on Ethereum alone increased from 1 billion to 88.8 billion. This growth also made significant growth in the revenue of various DeFi Protocols.

The top 12 assets in DeFi space have gained $361 million in revenue in May-21 alone which is a +7700% increase in the last 12 months. Even May had 43% higher revenue compared with April-2021 when we had more than 50% drops in values of various cryptocurrencies.

Recent private fundraising by blockchain startups

OneOf: A music-focused non-fungible token (NFT) platform build on Tezos, has raised $63 million with the help of Tezos Foundation, Sangha Capital, and others with a mission to become a more environmentally sustainable marketplace for artists and fans.

Chia:Chia Network, a programmable money platform created by BitTorrent founder Bram Cohen, has raised $61 million in a Series D funding round led by venture capital giants Andreessen Horowitz (a16z) and Richmond Global Ventures.

TALOS: Crypto trading engineering firm Talos raised $40 million in Series A funding led by Andreessen Horowitz (a16z), with PayPal Ventures, Fidelity Investments, and Others.

Skin in the game

Getting back on track after making a big loss

Have you recently made a big loss during the recent market dump? Then you need to continue reading this. Losses are inevitable while trading and no one can do 100% profitable trades because they are trading against trading bots and people having zero emotions. But making a big loss clearly tells that you were pretty bad at trade risk management.

Risk management is an essential part of trading and cutting your losses is the major part of risk management. You need to plan your stop loss point before you even enter a trade, as cutting a small loss is better than losing the entire capital. There is a famous saying by an experienced commodity trader named Ed Seykota: “The elements of good trading are: 1) cutting losses, 2) cutting losses, and 3) cutting losses.”

But now you already are at loss, you need to follow the plan discussed below instead of getting emotional and trying to cover losses in a hurry.

Admit your mistake

Do not blame your loss on market volatility; you need to admit your mistake. Admitting your fault is most important as you will only learn from your losses until you do not admit them and you will not start making good profits until you do not own the losses you make. Analyzing your trade is the most important as you will recognize your mistake and will not repeat it in the future.

Take a rest

Now you have already made a big loss, you should not try to cover it right away. You should stop trading for a while as your ego and emotions will have a significant impact on your trading. Randy McKay, a wizard trader, best explains the situation by saying: “When I get hurt in the market, I get the hell out. It doesn’t matter at all where the market is trading. I just get out, because I believe that once you’re hurt in the market, your decisions are going to be far less objective than they are when you’re doing well. If you stick around when the market is severely against you, sooner or later they are going to carry you out”

Get rid of negative emotions

If you keep regretting your loss you cannot move forward. So it’s important to get rid of negative emotions you came across after that big loss. Take it as a turning point of your trading carrier to make yourself a more disciplined trader. You can watch movies and get involved in some sports or whatever you love to do apart from trading.

Make a plan

Now when you get rid of negative thoughts you need to focus back and make a plan for trading. You need to define SOPs for your trading and commit yourself to follow them religiously in your future trades.

Rebuild your confidence

It’s important to build your confidence before you start your routine trading. For that purpose, you should start trading with small-sized positions and apply your newly defined SOPs to them. As you will start gaining from your small positions your confidence will improve over time and soon you will be ready to rock and roll.

Bottom Line

Do not let your bad trading impact your emotions for so long otherwise, you will not be able to build back your trading confidence which will result in a conservative trader that will only lead to losses. Take that big loss as a strong lesson and become a more disciplined trader in the future.

Have a nice day, see you soon!Rand