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

We can see how the last candle seems to be pushing for a short timeframe reversal, looking to test the $49,000 again. But besides that, looking at the bigger picture, I don't see anything interesting.

Consolidating a rising uptrend channel, but not really interested.

Depending on how's the response on the potential restest of the previous highs we will have a more insightful take on the next steps. As during the previous weeks, my main interest will remain in altcoins.

Big Caps index

Take a look at the Big Caps Index (made of ETH, XRP, LTC, BNB, EOS, TRX, XLM, ADA, LINK...) We can see it's struggling a little bit more to hold the key support but I'm not really concerned for now. As with the other scenario, corrections and consolidations are healthy and needed, no reasons to panic:

Again here, if we switch to the weekly perspective we can truly appreciate the potential for the move on how this correction going on is totally ok and even needed. Once it consolidates small timeframe support, the next wave up will be epic:

Mid Caps index

Now, let's take a look at the daily perspective for the Mid Caps Index (made of ADA, VET, ICX, NANO, WAVES, BAT, ZRX, ONT, ZIL...)

As you can see after the breakout of the main downtrend channel it tested the first target for few days to finally reach the second one. And now we are correcting, testing that first target but now as support. This is not the end of the world, it's a pretty common behavior, bull runs are not a straight line to the moon.

We need to test the previous resistance as support in order to consolidate moves. And so far, the response on that 2,800 sats range it's being amazing. I continue bullish.

Now switching to the weekly perspective on this same Mid Caps Index.

We can see how the close of the previous weekly candle was pretty neutral but closing on a positive note. Pointing for the continuation. Here we can appreciate the real potential.

The breakout over 4,000 sats signals the full bullish reversal:

Crypto Stats

DeFi Value Skyrocketing

• Massive Growth: DeFi platforms have given life to the crypto in the last year by making a gigantic +39x growth.

• New ATH: In last week value locked in DeFi smashed a new high of $41.34 billion with Maker on the top of the list with $6.55 billion locked in it.  

When Bitcoin Surpasses Fiat

Bitcoin is becoming a big thing in worldwide economics. The most nearest Bitcoin competitor among fiat currencies is Thai baht with a market cap of almost 22 million Bitcoins while the Bitcoin market cap is standing at around 21 million Bitcoins. The Swiss franc, Russian ruble, Mexican peso, and Saudi riyal are also among the nearest ones to Bitcoin.

Hot Trends on Twitter

Twitter is a strong tool to know the hottest cryptocurrencies that are making some real moves. Bitcoin as usual is on the top with more than 6k tweets on Sunday while trying to break the $50k milestone.

Polkastarter (POLS) comparatively new coin but getting good hype on Twitter and almost gained 130% in the last 4 days alone. Doge on the other hand is in 3rd place mostly due to recent tweets about it from Elon Musk.

Institutions are Buying Bitcoins

Enjin Coin which is a social gaming platform through which Bitcoin addresses holding more than 1000 Bitcoin has made a decent growth in the last couple of months. In December-2020 number of addresses holding more than 1000 Bitcoin was 2290 which are currently more than 2410.

This significant growth explains the increasing Institutional demand in the crypto space which is helping a great deal to keep the Bitcoin price up can create websites and clans, chat, and host virtual item stores are in the 1st place with a 337 million USD market cap in non-fungible tokens category.

Skin in the game

Importance of trading confidence

Confidence doesn't come when you have all the answers, but it comes when you are ready to face all the questions. I have seen many traders who speak like pro traders but when it comes to actual trading they lack confidence. The reason is they do not trust themselves and don't process the trade the way they had initially thought of. Self-belief plays an important role in building confidence but there are some particular dos and don'ts you need to follow.

• Make your own trading strategy

Proper execution of trade is very important, but when you are trading someone else's ideas, you don't have the confidence to execute it the told you, so it is very important to develop your own trading strategy rather than borrow ideas from others.

You never understand some else’s ideas completely but still keeps following them blindly. When you will develop your own trading strategy, you will have more confidence in executing it and will hold an asset in adverse price action situations when you know it will bounce back.

• Be prepared

Like you need planning and preparation for your interview, in the same way, you need to prepare for a trading day. Set aside all the distractions and focus on the trading. Before entering into any trade, look at all the possible price actions and make a plan for it in advance so you don't have to decide in a haphazard manner.

And the most important thing is to be disciplined and act what you planned. Never move an SL with the hope of saving a trade and take profit at the profit target you calculated before entering the trade rather let it run in the hope of getting more profit.

• Never let yourself down

After a trading day, we might think that we could have done better if we followed some path that we didn't and lost the money. Some people this way starts blaming themselves and creates mini failure experiences for them.

This will work in a negative way for you. Don't let yourself down and learn from the failures rather than repent of them which will not only create a positive mindset for you but will also gradually improve your trading performance.

• Not playing to your strength

Lots of traders try to adopt trading styles that don't suit their personality or lifestyle. As a result, it starts affecting their trading performance which makes them frustrated and they start losing confidence as a trader.

True confidence is earned, but it's also learned. So try to streamline your trading process and make yourself strong and optimistic about what you do. You might lose it a few times but keep learning from your mistakes and keep boosting yourself. There will be a time when your winning ratio will improve and you will be proud of yourself.

Have a nice day, see you soon!Rand