08.04.202118:28 Forex Analysis & Reviews: Bitcoin volume analysis for April 8, 2021

Exchange Rates 08.04.2021 analysis

1.How to make money on cryptocurrencies?

2. Analysis of Bitcoin futures volume on Chicago Mercantile Exchange

3. Trend analysis.

4. Japanese candlestick analysis.

5. Conclusion. Statistics.

1. How to make money on cryptocurrencies?

Only system trading can lead to stable earnings from trading cryptocurrency. What do you need to consider if you want to have a steady income on trading? Here are three important areas of expertise:

- Trading system,

- Capital management,

- Risk management.

It is important to understand these areas of expertise and make them part of your trading algorithm. In the following articles, we will try to get an insight about each of these points. Today, let's start with a trading system.

A trading system is a set of rules for opening and closing trades. The trading system answers the following questions:

Where and when to buy or sell?

Where and when to close a trade?

Until you have a trading system in the form of an algorithm that answers these questions, it is too early to trade. Only very experienced traders can rely on their intuition. There are different trading systems used by both professional and non-professional market participants. In addition, there are numerous types of market analysis. We will progressively consider different trading systems. Next time, we will talk about systems used by professional traders.

2. Analysis of Bitcoin futures volume on Chicago Mercantile Exchange (CME).

Yesterday, there was a sell-off in the cryptocurrency market. Major cryptocurrencies were losing ground. However, the decline was not steep and significant. Today, the market is already recovering. Bitcoin is moving in a sideways trend again. Let's consider the levels of the maximum traded volumes based on the Chicago Mercantile Exchange. These indicators show the activity of major market players.

06.04.21 - The level of the maximum traded volume (POC - Point Of Control) - 58165

07.04.21 - The level of the maximum traded volume (POC - Point Of Control) - 56060

The POC has moved down, and the price is above yesterday's maximum traded volume. The POC is moving in one direction, the price - in the other one. Therefore, the market is trading sideways. In such a situation, according to the volume analysis, you can open both long and short positions.

3. Trend analysis.

This type of analysis is very important. Trades made against the current long-term trend have lower profit potential. Trend analysis is carried out with the help of an exponential moving average:

Long-term trend - EMA 1152 (blue) on the H1 chart, this is an analogue of the EMA 48 on the D chart;

Medium-term trend - EMA 288 (red) on the H1 chart, this is an analogue of the EMA 48 on the H4 chart;

Short-term trend - EMA 48 (black) on the H1 chart.

Exchange Rates 08.04.2021 analysis

The price has risen above the short-term and medium-term EMAs, but they are still entangled. This is a sign of a sideways trend in the market. Today, according to the trend analysis, you can open both long and short positions.

4. Japanese candlestick analysis.

Market analysis with the help of Japanese candlesticks is the third step in this trading system. Let's analyze yesterday's daily candlestick:

Exchange Rates 08.04.2021 analysis

Yesterday's candlestick is black, it closed downwards. The low is below the low of the previous candlestick. The candlestick pattern matches the trend, its body is longer than its shadows. According to the Japanese candlestick analysis, the best way to make a profit is to consider sales.

5. Conclusion. Statistics.

Volume analysis - BUY SELL.

Long-term trend - BUY.

Medium-term trend - BUY SELL.

Short-term trend - BUY.

Japanese candlestick analysis - SELL.

Conclusion: On April 8, 2021, you can open both long and short positions on bitcoin in the short term as different types of analysis provide different forecasts. There is a sideways movement in the market.

To analyze the effectiveness of this trading approach, we should use statistics. Based on these forecasts, we track the data on completed transactions and open new deals in a separate account. Transactions are made on four instruments: Bitcoin, Ethereum, Litecoin, and BCHUSD. They are analyzed in the same way. Statement:

Exchange Rates 08.04.2021 analysis

Today, we do not open new positions, as the situation in the market is uncertain.

The risk is not more than 1% per trade, this approach is conservative. According to this system, a stop-loss order is placed beyond the daily low or high, depending on the direction of the trade. We do not set take-profit orders, enabling the price to grow without limits. We follow the trade, moving SL beyond the extreme points of the future sessions.

Since trading is carried out on the daily charts, this recommendation remains relevant throughout the day.

Trade along the trend and you will make a profit!

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Maxim Petrov,
Analytical expert
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