This study will sweep the cryptocurrency market and filter the best opportunities for you.
The study below is not a guide to buying or selling. Manage your risk properly.
Are you prepared?!
Ready for what ?! You must be asking yourself..
To make money, I would say..
Firstly, there is the reflection that now is not a good point to buy.
Many newbies will not understand why, but now it would be a bad buy, as we are very close to the $ 20,000 resistance.
This means that there is a high chance of allocating capital now and seeing it decrease are high, as bitcoin could fall by 20 to 30% if it does not break the $ 20,000
However, we recommend that you have the money at your disposal at the brokerage, because if Bitcoin breaks its historical top we can see a positive rally, which can give us much more than 10% profit quickly.
When Bitcoin breaks its historical maximum, we have no parameters to estimate the new target, however, the euphoria of the Crypto Market will be very strong, which makes us expect strong gains, after the breakout occurs.
Understand it better by reading the graphic analysis below.
Bitcoin Graphical Analysis
Graphical analysis of Bitcoin on the daily chart 12/15/2020
Bitcoin has been lateralizing since the end of November.
It is currently trading close to $ 19580.
After reaching the level of $ 19000, bitcoin tried to correct a few times, but the buying force shows strength at the moment.
We remain on the defensive as we are very close to the resistance, which is the historic top of the $ 20,000 mark.
As a result, we opted to take an approach to remain protecting capital in USD and re-enter the market only if the historic top breaks.
If Bitcoin is rejected from the $ 20,000, we will be looking at its main supports at the moment which are the $ 14000 and $ 16000.
For those who choose to protect themselves in USD, it is in an excellent risk / return ratio.
Analysis of Altcoins
Altcoins are cryptocurrencies alternative to Bitcoin
We do not recommend any positions for this week, we recommend waiting.
Long-term positions remain long-term (see each company's strategy).
But, to those who are not positioned, we suggest remaining on the defensive.
By: Isabela Ruiz Roque da Silva
HashRate (Total Hash Rate)
The Total Hash Rate (TH / s) is a metric to measure the mining power of the blockchain network. The higher the number of hashrates, the greater the security of the network and the greater its resistance to attacks in general. It is an important metric for analyzing miners' investments in mining equipment and long-term investments.
Figure 1. Total hash rate on December 7th. Source: Blockchain.com.
Figure 2. Total hash rate on December 12th. Source: Blockchain.com.
During the week of December 7, the total hash rate dropped slightly from 137.949m to 131.827m, and if we look at the Bitcoin price graph, we can also see the price drop. On the 11th of December we had a slight increase in the price, but it did not affect the hash rate. This is due to the fact that miners are mining less during this week, which caused a normal drop in the price as well.
NVT (Moving Value)
The NTV is an indicator that indicates whether the price of Bitcoin is in line with the financial volume of the cryptocurrency in the last 90 days: if the price of the cryptocurrency has gone up and there is little volume in the market (few transactions in the currency), the indicator will always show a peak.
Figure 3. Bitcoin NVT, December 7, 2020. Source: Coinmetrics.io.
Figure 4. Bitcoin NVT, December 13, 2020. Source: Coinmetrics.io.
Over the past week, NVT has been close to 100, peaking at 92 on December 8th. Last week, we had a very high peak, which also contributed to the fall of Bitcoin. For this week, as we have a good value on NVT (well below 100), we can see the price of Bitcoin trying to reach $ 20.0000 dollars. But it is clear that December is a month of profit making and we always need to look at the scenario as a whole and not just an indicator.
The fact that the price has remained very close to the $ 20,000 region tells us a lot about the interest of buyers.
The market remains thirsty for Bitcoin, and a $ 20,000 break is possible.
However, it is much more interesting to protect your capital in USD and re-enter the market if Bitcoin breaks historical levels, than to bet on a break.
Failure will cause the market to fall by up to 30%.
Manage your risk properly.