1. How to make money on cryptocurrencies?
2. Volume analysis of BTC from the Chicago Mercantile Exchange (CME).
3. Trend analysis
4. Japanese candlestick analysis
5. Conclusion. Statistics
1. How to make money on cryptocurrencies?
Understand what large players do in the market and follow suit. Yesterday, we discussed distribution. Today, we will talk about accumulation. Thus, a large player reaps the desired profit and leaves the market. Now, one needs to start accumulating again. We have already said that you cannot buy a large volume at a bargain price right away. Therefore, the player will keep the price in an appropriate corridor and imitate the continuation of the trend by making false breakouts.
What can indicate accumulation:
- there is a corridor, but the market is flat
- false breakouts of this corridor occur in both directions
- daily candlesticks go in different directions and have long shadows and small bodies
- the highest traded volume moves up and down haphazardly
Let's see how accumulation in the market might look like:
The image shows classic accumulation in the market. How should you trade in this case? You can open positions with short targets and inside the corridor. Since the market is flat, you can both sell and buy the instrument. A similar situation occurs in the bitcoin market. There is accumulation before a new strong trend. However, only time will tell where the price will go. Next time, we will talk about how accumulation ends and a new trend begins. Now, let's take a look at the current Bitcoin market.
2. Volume analysis of BTC from the Chicago Mercantile Exchange (CME)
It looks like bitcoin is looking for a pivot point. Perhaps a reversal will take place today (the image at the beginning of the article). Time will tell whether it happens or not, but there is the precursor. Bitcoin has not left the previous corridor so far. Therefore, you should consider opening short-term long and short positions. Most likely, long positions will be preferable in a situation like that. Let's consider the levels of the highest traded volume from the Chicago Mercantile Exchange (CME).
22.03.21 – the level of the highest traded volume (POC – PointOfControl) – 56,975
23.03.21 – the level of the highest traded volume (POC– PointOfControl) – 54,970
The POC has moved down. Bears failed to keep the price down. BTC extends its rally. The price still cannot break the POC as of March 22. It is too early to talk about a reversal. You can both sell and buy the instrument.
3. Trend analysis
Trading with a trend gives you the opportunity to trade together with a large market player. Therefore, you should always analyze the trend and trade with it. All trades conducted with the trend have a higher profit potential. To analyze the trend, I use the exponential moving average (EMA):
Long-term trend – a blue EMA (1152 ) on the H1 chart, which is an alternative to EMA (48) on D1;
Mid-term trend – a red EMA (288) on the H1 chart, which is an alternative to EMA (48) on H4;
Short-term trend – a black EMA (48) on the H1 chart.
According to the moving averages, the market is in an upward trend. The price is above all the three EMAs. Therefore, you should consider opening long positions. Please note that the price has only recently slightly exceeded EMA (48). Thus, the short-term uptrend is still weak.
4. Japanese candlestick analysis
A candlestick's shape, shadows and the body can tell you a lot about the current state of the market. You should study Japanese candlestick analysis because it can make your trading even more efficient. It is better to carry out the analysis in the daily time frame. Let's analyze yesterday's daily candlestick:
Yesterday's candlestick is almost without a body. It has long shadows, which indicates that bulls and bears are equally strong. Yesterday, a Harami candlestick pattern with two bodies was formed. This is a reversal candlestick pattern, albeit a weak one. An upward trend seems to have started. Thus, the priority is given to long positions.
5. Conclusion. Statistics
- Volume analysis – SELL/BUY
- Long-term trend – BUY
- Medium-term trend – BUY
- Short-term trend – BUY
- Japanese candlestick analysis – BUY
Conclusion: You can sell and buy BTC in a short term on March 24, since different types of analysis give different forecasts and the market is flat.
Always keep statistics on your trading.There are several services that allow you to monitor the capital curve and statistics of your trading online. Trades and analysis are carried out in four instruments: Bitcoin, Ethereum, Litecoin, and BCHUSD. Trading account monitoring:
Gains for two months of 2021: +11.32%.
Statement:
Current deals:
23.03.21 BCHUSD SELL: 514.08 SL: 545 ; Risk per deal: 1% of a $10,000 deposit with 3.28 lots.
09.03.21 Ethereum BUY: 1831 SL: 1619; Risk per deal: 1% of a $10,000 deposit with 0,48 lot.
A 1% risk will protect you from excessive worries. A Stop Loss is placed beyond the high/low of the day, depending on the direction of the trade. We do not set a Take Profit and move a Stop Loss above the extreme points of the upcoming sessions.
Since trading is carried out on daily charts, this recommendation is relevant throughout the day.
Trade with the trend and you will generate profits!
