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Arweave Makes an Impressive Comeback Arweave makes an impressive 94% comeback after losing more than half of its value! Arweave (AR) has been selling off after reaching its all-time high at $34 on April 1st. The token sold off more than 50%, reaching lows of $16. However, after touching the $17 support, it quickly got up on its feet and rose 94% in just four days! Arweave’s Trend At first glance, AR’s trend looks unpredictable and choppy. The coin can range for a long time and then suddenly have a strong and aggressive uptrend. While this trend may be challenging for new traders, it is actually one of the easiest patterns to trade for experienced traders as AR respects its support and resistance levels precisely. The token bounces up or down in accordance with its support or resistance level, and it does so almost immediately. The same is true for when a breakout occurs. It is usually swift and violent. As a result, trend-following indicators tend to perform poorly on Arweave, even on the lower timeframes. However, momentum oscillators such as the RSI, Williams %R, or the Stochastics may work well, as the buy signals from these oscillators may coincide with support areas.
Long
by cryptohopper
Ethereum, a Bull in a Bear Market!While Bitcoin and the rest of the market have taken a nosedive, Ethereum made new all-time highs. Let's take a look at Ethereum's trend and a suitable strategy you can use! Ethereum the Exception The crypto market took a hit this week after Bitcoin failed to break above $65,000. ETH temporarily regained its lost ground and even made new all-time highs. The crypto market usually follows Bitcoin, but it doesn't do so to the letter. Ethereum, for example, is somewhat delayed. When Bitcoin starts an uptrend, Ethereum typically follows a little later. When Bitcoin's uptrend ends, Ethereum may continue with a bullish sentiment for a while longer. This divergence can be seen clearly in the last uptrend when Bitcoin peaked on December 17, 2017, while Ethereum reached its top two weeks later, on January 13, 2018. Trading Ethereum We have found the MACD to be one of the best indicators when it comes to the crypto market from our backtesting. In general, cryptocurrencies tend to have strong trends over prolonged periods of time. As a result, trend-following indicators work well. Indicators can be improved significantly by changing a few parameters. The MACD has three customizable parameters, namely: Fast Period, Slow Period, and Signal Period. Changing these parameters can make a big difference. For example, the basic MACD strategy of entering a position when the MACD signals a buy and exiting when it signals a sell with the default parameters (trading with all equity and accounting for a 0.1% fee) would have resulted in a profit of 89,465.29%, and a winning percentage of 38%. This is significantly worse than the buy and hold of 181,961.76% However, changing the parameters to Fast Period = 20, Slow Period = 35, and Signal Period = 12 results in a whopping 554,693.47% profit and a winning percentage of 46%.
KRAKEN:ETHUSDLong
by cryptohopper
Trading Ethereum Profitable: Strategy Example (With Backtest)Ethereum made a new all-time high, rising over 20% from its previous ATH. Let's take a look at how you can trade Ethereum and take advantage of these uptrends. Finding the Trend: To make a successful strategy, we should start by identifying the trend. We can do this with the help of a trend-following indicator that will act as a filter. The MESA can work well here, this particular setup will keep a buy signal as long as the MAMA is above the FAMA. In this example, we have changed the MESA's default values to Fast Limit 0.1 and Slow Limit 0.001. This change made the indicator less reactive to the price and better at finding long-term trends. Entries & Exits We then need an indicator that can find suitable entry points. For this example, we have chosen the MACD. Thus we will only take trades when the MESA displays bullish momentum and when the MACD gives a buy signal. For the exit, you can use a strategy or sell settings. We have chosen to use the MACD again to time our exits. This is because Ethereum's trend is irregular; sometimes, it may be less volatile, while other times a lot more. Thus the MACD should be able to take full advantage of this volatility. Therefore our strategy will sell when the MACD gives a sell signal. Results: In short, our strategy would look like this: enter when both the MACD and modified MESA give a buy signal and exit when the MACD gives a sell signal. We performed a backtest on ETH/USD (Kraken), with all the available equity used on each trade, a 0.1% fee was taken into account. This resulted in a profit of 164,121%, similar to the buy and hold of 179,352%. However, the strategy is less risky than the buy and hold as it doesn't lose much in a downtrend. Remember, this is just an example for you to create a suitable strategy, and not a recommendation.
KRAKEN:ETHUSDLong
by cryptohopper
1
Bitcoin at Support Offering 20% ProfitBitcoin is currently at support and may soon bounce, offering a 20% profit opportunity. Current Situation After hitting highs of $62,000, Bitcoin has been mostly selling off, unable to keep its upward momentum. Although this may be disappointing to traders, in the long run, it is a healthy pullback that allows us to buy the coin at a discount! Bitcoin appears to have bounced on the $51,500 support. Although this level has proven to be reliable multiple times, it is not as strong as the $42,000 level, which is labeled as "Main Support" on the chart. This discrepancy is because the $51,500 support doesn't represent a previous all-time high (which makes the sturdiest support and resistance). Opportunity If you were to buy in at $51,500, then you stand to gain 20% when the coin eventually recovers to its all-time high. If Bitcoin breaks above the all-time high, you stand to gain an additional 20%-40% on top! If you are unsure that this level will hold but still want to take part in the trade, you may enter with only part of your funds. If it doesn't hold, then you can enter again at lower support levels, which will, in turn, raise your potential profit when BTC eventually recovers. If the $51,500 level breaks, then we have the $42,000 support to fall back on. The last time BTC reached this price level, it immediately rebounded and rallied to $62,000. This support level also represents the previous all-time high, which was broken after Elon Musk tweeted that Tesla purchased $1.5 billion worth of BTC. Below the $42,000 level, we have two minor supports at $38,000 and $34,000. Finally, we have a strong support at $30,000, but it is unlikely that BTC will fall this low, considering the bull market's strength.
Long
by cryptohopper
NEAR Caught in a Strong UptrendNEAR is one of the newest cryptocurrencies on the market, and it is already making a name for itself after an almost 1,000% increase over the past three months. Fundamentals NEAR Protocol (NEAR) is a decentralized application platform created to help developers design their apps. The network runs on a Proof-of-Stake (PoS) consensus mechanism and aims to offer scalability and stable fees. NEAR is the native utility token that is used for: 1. Fees for processing transactions and storing data. 2. Running validator nodes on the network. 3. Governance votes to determine how network resources are allocated. Similar to BTC, NEAR has a controlled supply. Its current supply stands at just over 300,000. The supply is set to increase by 250,000 annually and reach a total of 1,250,000 after 5 years. Economics tells us that when supply increases, price decreases. Thus this is not a positive aspect at the moment, but it will be so in five years. NEAR on the Chart NEAR is currently in an uptrending channel. It has recently hit the upper limit of the channel and now even broken through, indicating that a short-term pullback is imminent. There is also a bearish RSI divergence indicating a pullback. The Relative Strength Index (RSI) is a momentum indicator that oscillates between overbought and oversold. When RSI has a value greater than 70, it is said to be overbought (indicating that it is a suitable place to sell), and when it is below 30, it is oversold (a suitable place to buy). A bearish RSI divergence occurs when the RSI is moving lower while the price is moving higher. This is precisely what happened between the 9th and 10th of March, thus further indicating a short-term reversal. Looking Ahead: NEAR appears to be in a solid uptrend for the past three months, mostly respecting the channel drawn on the chart. However, due to the price breaching the upper limit and the bearish RSI divergence, it may see a short-term reversal before pushing higher.
Long
by cryptohopper
How Profitable Is UMA's Recovery?After reaching the important support level between $18-$20, UMA started rebounding. Let’s see how much potential profit UMA could bring us if we bought in now! Backstory: UMA’s previous strong growth was mainly due to an announcement regarding the arrival of the uSTONKS synthetic token. uSTONKS tracks an index consisting of ten stocks that are most commented on r/wallstreetbets. Wallstreetbets is a Reddit that gained popularity after pumping certain stocks (such as GME and AMC), making hedge funds lose billions of dollars in a short squeeze. Recovery and Potential Profit When the hype regarding uSTONKS started to die down, UMA’s price began descending. The price eventually reached $17, or 60% lower than the all-time high. Since then, the token has consolidated for a while, and now it looks like it is trying to start a new uptrend. If UMA were to recover to its all-time high, it would mean a 110% increase in price, which would essentially more than double your funds if you were to invest now. A minor resistance on its way to a full recovery is the $24 price point. Breaking above $24 significantly would probably mean that UMA is attempting to reach its all-time high again. Uncorrelated: One excellent aspect about UMA is that it is not as influenced by Bitcoin as the rest of the market. For example, when Bitcoin was trending strongly in October and November 2020, UMA wasn’t moving much. The token made its most substantial moves when it had positive news. Disclaimer: We do not give trading recommendations; we only break down potential trades. Always do your own research before entering any position.
Long
by cryptohopper
3
DOT the Perfect Token for Support and Resistance LoversPolkadot (DOT) has been increasing tremendously; the coin is currently up by 500% in less than three months. What is even better is that DOT’s pattern is actually predictable and one of the easiest for support and resistance traders. Polkadot Pattern The token has so far proved to follow Darvas’ box theory better than most other assets (including stocks). This means that the price moves within ranges defined by boxes with an upper limit (resistance) and a lower limit (support). In this case, Polkadot has been continually moving higher, and so the upper limits, once breached, became the new lower limits and a suitable entry point. Indicators Due to the fast pace at which the price has been advancing, trend-following indicators on the bigger timeframes have not performed very well. If you would like to use trend-following indicators, the 30 minutes timeframe or even lower may be more suitable for DOT. If you would like to stick to the bigger timeframes, then Williams %R (displayed above) has been working well. Williams %R is an oscillator that identifies oversold and overbought zones. Williams %R is one of the fastest oscillators, meaning that it identifies overbought and oversold zones the quickest. If you look at the chart, it has identified oversold zones in some of the best places corresponding with the lower limits (support areas).
KRAKEN:DOTUSDLong
by cryptohopper
3
Altcoins Boom! Let's Take a Closer Look!Altcoins gain 80% in value over just two weeks! Let’s take a closer look at the situation. The Rally Begins Over the past six months, Bitcoin has been doing incredibly well, continuously making higher highs and showing consistent growth. However, the same cannot be said for most altcoins. With a few exceptions, most altcoins did not move nearly as much and were mostly consolidating. However, beginning January 28th, the altcoin season began, with the Midcap Index growing by 80% in just two weeks. The Midcap Index consists of 23 mid-cap coins, so it’s safe to say that it accurately represents mid-cap coins. Trend Direction: The MACD on the daily chart works well as a strategy for BTC. It appears that it also tends to work on the Midcap Index. If you had used it as a strategy since the index’s creation and took only long trades, you could have made a 184% return, which is not excellent considering that the buy and hold would yield 326%. Even when adding the 56% open P/L, you would still only have 230%. Therefore it is better used to identify the trend direction rather than to trade signals off it. Who is Taking the Lead? DeFi tokens have been some of the best-performing assets in this bull run. The DeFi index grew 300% in 2021 alone! Other coins related to DeFi, such as LINK and ETH, have also been doing well. Apart from DeFi, exchange coins have been booming as well. BNB and FTT this year grew by 220% and 270% respectively. OKB also reached a new all-time high.
FTX:MIDPERPLong
by cryptohopper
Is it time to Celebrate Ethereum’s New All-Time High?On February 2nd, Ethereum finally made a new all-time high. Let's find out if the price will skyrocket or pull back! Volume and Volatility In recent newsletters, we have showcased the importance of volume. If a breakout is backed by substantial volume, then it will probably succeed and make a big move; if not, then there is a bigger chance that it will flop. Right now, Ethereum's breakout isn't backed by substantial volume, as the volume has stayed the same over the last few days. Breakouts most often come with increased volatility because they tend to be very aggressive. However, as displayed by the Cryptohopper ATR, this breakout did not bring any additional volatility to the market. On the contrary, volatility actually decreased. The Cryptohopper Average True Range (ATR) is made up of the ATR line displayed in green and an EMA of the ATR shown in blue. When volatility is increasing, the ATR line crosses over its EMA. However, this hasn't happened yet. Looking Ahead: The volume and volatility can come in after a breakout occurred, and if it does, then we will probably see Ethereum trending higher; however, that doesn't happen often. If volume and volatility do not increase, we will likely see Ethereum retest the breakout.
by cryptohopper
Trading a Ranging MarketBAND has broken its previous consolidation range only to enter another range. Let’s take a look at how you can take advantage of a ranging market! BAND Price Action BAND was one of the best performing cryptocurrencies in the first half of 2020. However, after its crash in September, the cryptocurrency has yet to regain its strong momentum. The token has ranged between $5 and $7.5 for almost four months. On January 6th, it finally broke this range, only to enter another one, this time between $7.5 and $11.5. Let’s now take a look at a strategy you can use to take advantage of this. Ranging Market Strategy You can use Williams %R on the 4h chart to find oversold zones and then use the MACD on the 1h chart to enter when the reversal is taking place. In short, the strategy works like this: when the Williams %R shows overbought on the 4h chart, take the next MACD buy signal on the 1h chart. As displayed in the chart above, this strategy can identify some great reversals. When it does identify reversals, the strategy can make significant gains. On the other hand, you may also get some “fake signals” that are too early and bring about large losses. Therefore, it is probably best to go with a tight stop loss to minimize losses, and a wide profit target and trailing stop loss to take full advantage of reversals. Disclaimer: This is just one example of a strategy that you can use to trade a ranging market, and is not a recommendation. Using this strategy in a bearish market will probably lead to more losses than gains. Suppose you want to use it in a bullish market instead. In that case, you can add the MESA or any other trend-following indicator on the daily chart, to make sure you only take trades in the direction of the trend.
Long
by cryptohopper
Is the Bitcoin Uptrend Coming to an END?Bitcoin has been in an exceptional uptrend since October 2020. Let's find out if this bull market is coming to an end and what could happen next! Is the Bull Market Coming to an END? When Bitcoin is in an uptrend, the 150 EMA on the 4h chart acts as a mobile support. Bitcoin has kept above the 150 EMA ever since breaking above the $10,000 price range in October 2020! The coin has retested this support multiple times but never went below it significantly. Therefore, if Bitcoin closes around 10% below the 150 EMA, it would mean that this uptrend has come to an end. What Happens Next? This doesn't necessarily mean that we will have a bear market. We may continue to consolidate instead. Further proof that we may be in a ranging market instead comes from the indicator Williams %R. Williams %R is an oscillator that finds overbought and oversold zones. As with any momentum oscillator, it works best in a ranging market. Ever since Bitcoin got rejected by the $42,000 level, Williams %R has been working very well. If we do drop below $30,000 we may see a bear market, however, it shouldn't be very severe and we should still hold above $20,000. Thus DCA may be the preferred investment method over the coming weeks. A consolidating Bitcoin market can be a positive development for the crypto world. It may give altcoins enough time to catch up and make big moves; ETH, AAVE, SNX, LINK, and FTT, among others, have already started a strong uptrend. Additionally, this gives Bitcoin time to consolidate its massive gains over the past three months.
by cryptohopper
1
SNX (Synthetix) Is Going Parabolic Although the crypto market has been pulling back, SNX has been heading ever higher! The coin is already up by more than 100% in 2021, and this may be just the beginning! SNX Momentum According to Nicolas Darvas, the writer of the famous book "How I Made $2,000,000 in the Stock Market", the stocks that are the most resilient in bear markets, and that even try to push up, are usually due to experience strong growth when the bear market is over. We can apply this theory to cryptocurrencies as well. The coins least affected by the bear market and those that recover quickly will probably boom in the bull market. SNX currently fulfills these criteria as the crypto market took a hit early this week, but the token has already recovered and made new all-time highs! Watch The Volatility If you decide to enter SNX (or you are already long), then it is essential to note that the volatility has increased strongly in 2021, as portrayed by the ATR. The Average True Range (ATR) is a volatility indicator. Many traders use the ATR as a trailing stop loss; for example, they may place their stop loss at two times the ATR. So if you buy SNX at $15, and the ATR has a value of $1.88, then your stop loss would be at $15 - (2*$1.88) = $11.24. On January 1st, the ATR value was $0.88, while today, the ATR value more than doubled at $1.88. Even if you don't use the ATR as a trailing stop loss, you can use it to judge how volatile the market is and whether you should make your stop loss wider or narrower.
Long
by cryptohopper
Ethereum On Its Way To The All-Time HighEthereum broke above the $1,155 resistance, and retested that level! Now that it held, ETH is on its way to reaching its all-time high once again! Breakout? The second-most capitalized coin on the market started following Bitcoin closely by growing quickly in a short period of time. Ethereum is already up by more than 60% this year. The coin was previously rejected by the $1,155 resistance on January 3rd. This is the last resistance in Ethereum’s path to the all-time high. Therefore, a breakout of this level is critical. A daily candle has already opened and closed above this level, which is a very positive sign. The price has reversed and pushed upwards after retesting this level, thus confirming it as a support. Therefore ETH is on its way to the all-time high again. If Bitcoin continues its uptrend, it is likely that Ethereum will also reach its all-time high soon. What To Do Now? If you are a support and resistance trader, and you are already in the trade, you may consider selling when ETH is approaching the all-time high, which will probably act as a strong resistance. If you prefer to trade using technical indicators, then you can take this as a confirmation of an uptrend. Trend-following indicators such as moving averages, Parabolic SAR, and MESA are excellent indicators that you can use to catch the big moves in an uptrend.
Long
by cryptohopper
2
Bitcoin’s Had a Fantastic Year, but the Best is Yet to Come!With more than 250% growth in 2020, there is no denying that Bitcoin experienced an outstanding year. However, the best is yet to come! Bitcoin in 2020 The year started with a strong uptrend of around 45% in 45 days. It is important to note that this followed a 50% correction from $14,000 to $7,000 and then a short consolidation period. During March’s economic downturn in response to Covid-19, BTC experienced a severe crash along with many other markets such as the S&P 500 and gold. The coin fell to its lowest level of $3,800 this year. Then, in just two months, Bitcoin recovered all of its lost ground, reaching $10,000 by May. The price stayed stable between May and August, and it was the altcoins that grew significantly, with many DeFi tokens gaining more than 1,000% in value! BTC then made new yearly highs at $12,000 before retesting the $10,000 support. Starting in October, with the help of strong institutional interest, Bitcoin experienced a tremendous uptrend with a speed and momentum not seen since early 2017. On November 5th, BTC broke above $14,000, proving that this is the strongest uptrend since 2017. On December 16th, the price made a new all-time high for the first time in 3 years. BTC pushed up an additional 43%, reaching all the way up to $28,000! Bitcoin in 2021 Although 2020 was a great year for the world of crypto, with a tremendous increase in Bitcoin’s price and a keener interest from institutional investors, many predict that “2021 will be the year of crypto”. Bitcoin reached its zenith in December 2013 when it broke above $1,000 for the first time. After a severe correction, the coin gained significant ground in 2016, making new all-time highs and reaching its zenith again in December 2017, around four years later. Then following a severe correction, Bitcoin rose significantly in 2020, making new all-time highs. If history is to repeat itself (which it often does), then we will see Bitcoin peak out in December 2021! Happy New Year!
by cryptohopper
Bitcoin Enters a Consolidation PeriodAfter an astonishing breakout of the $20,000 resistance, Bitcoin appears to have entered a consolidation phase between $22,000 and $24,000. Consolidation Importance A bull market without any correction or consolidation is like a building without a foundation: it is shaky, and can collapse at any time. Therefore, consolidation helps bring stability to the market. When an asset is consolidating around a price level, that price level becomes important. Thus, the $22,000 and $24,000 price levels will likely act as support or resistance long into the future. The Hourly Chart Although we usually use the 1 day or 4h chart to showcase the current trend, the 1h chart is also among the most important timeframes. Many swing traders identify the trend on the 1 day and 4h chart, and use the 1h chart to time their entries and exits. On the other hand, intraday traders use the 1h chart to identify the trend direction, and then time their entries and exits on the 5 minutes and the 1 minute chart. Therefore, the hourly chart stands as the bridge between swing traders and day traders, making it one of the most used timeframes. Generally, the more popular a timeframe is, the more reliable it becomes. The 150 EMA, which works well on the 4h chart, also works well on the 1h chart, albeit slightly different. On the 4h chart, this indicator can be used to point out the long term trend, and by long term we mean the trend of the next 1-6 months! On the 1h chart the 150 EMA can effectively determine the medium-term trend that usually lasts between 1-6 weeks. If the price starts hitting it sporadically in a short period, it may indicate that the uptrend has come to an end, and we are in a ranging market.
by cryptohopper
A Record for BitcoinAfter three weeks of ranging, Bitcoin finally breaks the $20,000 and makes a new all-time high! Breakthrough Importance Calling this as "big news" would be an understatement. This breakthrough just about confirms many predictions regarding the Bitcoin cycle. Generally, the more a resistance is tested, the stronger it becomes; this also means that the stronger the resistance, the stronger and more aggressive the breakthrough will be when it finally occurs. The $20,000 level was strong because it was the main resistance in the 2017 bull run and held multiple times in 2020. Now that the breakthrough finally occurred, it has pushed Bitcoin's price through the roof! What Happens Now? It is very hard to determine where exactly the price will head. During the last halving, the price went up around 20% after making a new all-time high. This looks to be the case this time, as the price stopped just short of $24,000. Every time the price breaks a resistance, it becomes a new support. Therefore we should look at the $20,000 point as a robust support level from now on. This is also the price where we predicted Bitcoin would head to after peaking out around $80,000-$100,000 in the halving cycle. As BTC has just broken this level, it may come back to retest it after peaking out, which will make it an excellent entry point. The 150 EMA we mentioned in previous articles works excellently as a mobile support during bull runs. Therefore, when the price hits the 150 EMA, it is usually a great time to buy. During the last halving, Bitcoin's experienced a short correction to just below its previous all-time high before pushing higher. Therefore BTC may fall to $16,000 in case of a more serious correction. However, it is more probable that it will hold above $20,000.
by cryptohopper
1
Make Indicators Profitable AgainIf you have been in the market for some time, then you have probably tried a few different indicators. Some may have worked well, others not so much. However, just because the indicator's default version didn't work, that doesn't mean it doesn't have potential! Parabolic SAR Default We have tested the Parabolic SAR with its default settings, on ETH/USDT 4h chart, on Kucoin. Each trade was taken with 100% of the available equity, and resulted in a total profit of -89%. This means that you would have decimated your account if you had used the default Parabolic SAR. The default Parabolic SAR values on Tradingview are: "Start" 0.02, "Increment" 0.02 and "Maximum" 0.2. Modified Parabolic SAR By modifying the "Increment" and "Maximum" values to 0.002, you will create a version that has a total profit of 492%! This version even works on shorts. There are even more profitable versions of the Parabolic SAR strategies which you can use. We have just tested a few different values, but more extensive testing would almost certainly bring better results. Although you can use this indicator for your entries and exits, it is better to use it as a filter. This version is a lot slower than the default one, and as such, it only catches the big trends. As mentioned earlier, it also works on shorts; therefore, it can identify bear markets accurately. Therefore, you can use this version as a filter to find the long-term trend, and then use another indicator that signals more often, such as the MACD, to find the appropriate entries and exits.
by cryptohopper
Bitcoin 2017 vs 2020 Bull Run (Very Different)Bitcoin had one of its most phenomenal years in 2017 when the coin reached $19,500 for the first time. It took BTC three years to reach that price level once again. A good number of people are now wondering if this will play out similarly to 2017. However, based on the data, we will head significantly higher this year! YTD Growth In 2017 we experienced an incredible 1,800% year-to-date (YTD) growth by the time we reached $19,500. Conversely, this year, the YTD growth stood at only 170%, ten times less than in 2017! No matter how you look at it, a 1,800% growth is a lot even for cryptocurrencies. Therefore, when Bitcoin reached $19,500 in 2017, the price was hugely overextended. However, when we reached $19,500 this year, we were only up by 170%, and thus we have more room for growth. Yes, it can be argued that Bitcoin is less volatile now than it was back then, which accounts for the more limited growth. But any way you look at it, it is not ten times less volatile! Price Reaction to All-Time High Perhaps the most important difference between 2017 and 2020 is the different reaction the price had when reaching $19,500. When BTC made the all-time high in 2017, it immediately experienced a severe 40% correction in just six days! In 2020, BTC experienced a substantial 15% in only two days. However, following this we saw an immediate reversal where the price pushed even higher to $19,800! What Happens Next? We can never predict for certain what will happen in this market. However, based on the data, it is probable that we are just at the beginning of the uptrend. We may be somewhere around $5,000 when compared to the 2017 bull-run, still expecting Bitcoin to triple or quadruple in value in the future.
BITSTAMP:BTCUSDLong
by cryptohopper
12
BTC Starts Correction. Now let’s find suitable entry points!As predicted, BTC failed to make new highs, stopping just short of $19,500. The coin has now started an overdue correction. Now it is essential to find where it will bounce back so we can enter once again! Support Levels Finding suitable entry points goes hand in hand with finding the right support levels. The first support level stands at $17,000, where BTC made a small comeback at the start of this correction. This level is important as it was the last main resistance in Bitcoin's path to the all-time high. However, due to Bitcoin's outstanding growth from $10,000 to $19,500 in just two months, the correction is more severe and has already stepped past this point! The next support level stands at $16,000. This level came into prominence this year, as it held Bitcoin from pushing higher repeatedly. This level is likely to be hit, as after a strong bull run, a mild bear market is to be expected. Currently, Bitcoin has bounced near this level twice. Lastly, we have the $14,000 support level. This level is critical as it was the highest price we hit following the 2017 bull run until November 2020. It also acted as a major support holding Bitcoin above it throughout much of 2018. BTC may head to this level in case of a "severe" correction. Yes, Bitcoin can go lower. However, due to the strong momentum, optimism, halving, and entrance of institutional investors, the price will likely hold above $14,000. After bouncing on one of these levels, we are likely to see revisit the all-time high. However, it may take a while before we break it. Strategy The 5 and 200 EMA crossover is among the best strategies on the 1h chart. With a 0.01% commission, the strategy would have made a stunning 415% return from 2019 up until the present. While backtesting is not the same as live trading, if you backtest for long enough and throughout different market conditions, then you will likely see similar results in your live trading. Therefore you can also use this strategy as your next entry point.
Long
by cryptohopper
Bitcoin is on Track to Reach All-Time High!With the breakthrough of the $17,000 resistance, Bitcoin is now on track to its all-time high at $20,000! Breakthrough Importance The breakthrough of the $17,000 is of utmost importance as it was the last significant resistance on Bitcoin’s path to $20,000. This level acted as a resistance before Bitcoin reached the all-time high, and afterward, it prevented Bitcoin from reaching $20,000 again. What Happens Next? This level was the strongest in Bitcoin’s path to $20,000. Therefore, due to the strength of the bullish momentum, Bitcoin will probably test its all-time high once again in the near future. However, Bitcoin hasn’t touched this level in nearly three years, and it is unlikely that we will achieve a breakthrough and make new all-time highs just yet. The most probable short term outcome is that we will push close to $20,000, get rejected by this level, and head back to $17,000. This rally has been very impressive so far but also dangerous. In total, Bitcoin rose by around 65% in just 42 days; this equates to approximately 1.5% growth every day for the past six weeks. While this rally has been great for holders and traders, it is only natural that some form of correction will ensue. If a correction follows soon, then the newly broken $17,000 level will be the first important support level. Following this level will be the $16,000 support BTC broke last week, and then finally, we have the $14,000 level. Although Bitcoin can fall even further than $14,000, that is not as likely to happen. Many traders and investors expect Bitcoin to be very bullish in the upcoming year due to the halving and increasing institutional investment.
Long
by cryptohopper
Third Time’s the Charm! Bitcoin Achieves Resistance BreakthroughBitcoin has already tried and failed to break the newly formed $16,000 resistance twice. The third time was a charm and a breakthrough was finally achieved. Current Uptrend Analysis Since October 8th BTC has been in a near-constant uptrend, growing by more than 50%. One of the best indicators for judging the uptrend on the 4h chart is the 50 EMA. The 50 EMA has stayed below the price during this bull run and acted as a support upon which the BTC’s price has retraced to, before pushing higher. The 50 EMA acted as support after both failed attempts at breaking $16,000. The Bollinger Bands have also been a useful indicator to judge this uptrend. When the Bands widened, the volatility increased, and BTC showed a clear trend closely following the upper band. When the bands tightened, BTC was locked in a range. The Bands are currently somewhere in the middle, not very wide but also not very tight. Another critical aspect to note is that we have seen BTC making higher lows during this uptrend. The fact that it continued making higher lows holds weight, as it showcases that the coin is still very bullish, and the uptrend doesn’t look like it will face a significant correction at the moment. Breakthrough Yesterday Bitcoin finally succeded in breaking the $16,000 resistance. The price has edged ever closer to the resistance, and then it finally achieved a breakthrough. The price may now retest $16,000 to confirm the breakthrough before moving higher. The next target for Bitcoin now stands at $17,000. This level acted as an important resistance during the December 2017 bull run.
Long
by cryptohopper
1
DeFi Tokens Aren’t Taking Part in This Bull Run YetWhile Bitcoin is in its strongest bull market since 2017, DeFi tokens have actually been selling off. Bull Run and Subsequent Correction This year was terrific for the DeFi tokens until September; some grew by more than 5,000% from January 2020. The DeFi Index we are analyzing was created towards the end of June, and therefore we are unable to showcase the entire uptrend. However, we can see the end of the bull run, which occurred this summer. On September 1st, the entire Crypto market experienced a pullback, and amid a few exceptions (e.g. THETA, BNB), all coins stayed at lower levels for the rest of the month. In October, Bitcoin started gaining strong momentum, rising around 28% and closing the month at a yearly high – that's when the main divergence between Bitcoin and the DeFi tokens appeared. While Bitcoin continued to grow, the DeFi tokens intensified their sell-off, reaching their July levels at -60% from the all-time high. Where to Next? We currently appear to have bounced off the $1,375 level, which acted as support throughout the end of June. The support at $1,375 is the last level that we can see on this graph (due to the index's relatively recent arrival). Therefore if it breaks, we will have to look at the individual tokens to identify other support levels. As the DeFi tokens' price are not correlated with BTC and the rest of the market at the moment, it is hard to tell what will happen next. Today the tokens did follow Bitcoin in its bullish day, but whether they will continue to follow is still uncertain. However, if you believe in the DeFi tokens' fundamentals, then this is an extraordinary opportunity to buy some at a 60% discount.
FTX:DEFIPERP
by cryptohopper