1. How to make money on cryptocurrencies?
2. Volume analysis of BTC from Chicago Mercantile Exchange (CME).
3. Trend analysis
4. Japanese candlestick analysis
5. Conclusion. Statistics
1. How to make money on cryptocurrencies?
In order to earn on cryptocurrencies, you should be a professional market player. Trading should be your profession. To become a professional trader, you must be passionate about trading and have time and money for training.
Those who enjoy what they do become professionals. It is especially important in trading since you need to devote time to self-education and study of changing markets. You will not be able to make money in trading by doing nothing. You should enjoy trading. Only then, you can do it for years and turn into a professional. Let us consider the current bitcoin market situation and try to understand what professional market participants do.
2. Volume analysis of BTC from Chicago Mercantile Exchange (CME)
Bitcoin is expected to reach previous highs (the image at the beginning of the article). The current bullish trend seems to be strong enough so that the price can test previous extreme highs. Perhaps bitcoin will trade at $62,000 in the next few days. At the same time, the coin is located close to its highs and has limited potential for movement. If you want to open positions, you should set stop losses closer and take profit quickly. Let's consider levels of the highest traded volume from the Chicago Mercantile Exchange (CME). The volume analysis indicates the bullish market.
26.03.21 – the level of the highest traded volume (POC – Point Of Control) – 53,995
29.03.21 – the level of the highest traded volume (POC – Point Of Control) – 58,655
Yesterday, the point of control moved up and was in the shadow of yesterday's candlestick. The price dropped sharply and closed below the highest traded volume of the day. A part of market participants took profit. They no longer believed in the continuation of the bullish trend. Today, the price has returned to yesterday's point of control but has failed to break through it. This means that you can consider entering both long and short positions.
3. Trend analysis
Large market participants always create trend movements in the market. If you trade with the trend, you trade with large market participants. Analyzing the daily time frame, you will improve your trading. An exponential moving average is used in trend analysis:
Long-term trend – a blue 1152 EMA on the H1 chart, which is an alternative to 48 EMA on the daily chart;
Mid-term trend – a red 288 EMA on the H1 chart, which is an alternative to 48 EMA on the H4 chart;
Short-term trend – a black 48 EMA on the H1 chart.
It is a bullish market. The price is above all three EMAs. All three trends are in line. In this case, you can enter long positions.
4. Japanese candlestick analysis
Japanese candlestick analysis of the closing price and daily candlestick's body provides a better understanding of the current market situation. Let us analyze yesterday's daily candlestick:
It is a large white candlestick closed upward. It has a long upward shadow which indicates profit taking and a pullback. Then, the price goes down. All this shows a bullish trend. Perhaps the upward movement is coming to an end. According to Japanese candlestick analysis, you can open long positions today.
5. Conclusion. Statistics
- Volume analysis – BUY/SELL
- Long-term trend – BUY
- Medium-term trend – BUY
- Short-term trend – BUY
- Japanese candlestick analysis – BUY
Conclusion: You can buy and sell bitcoin in a short term on March 30, since various analyses give different forecasts and the market is flat.
Only statistics can show the efficiency of any trading strategy. According to the above forecasts, transactions are made in a separate account.Trades and analysis are carried out in four instruments: Bitcoin, Ethereum, Litecoin, and BCHUSD. Gains for two months: +10.42%, Statement:
Currently, there is only one open trade:
25.03.21 Litecoin SELL: 174.44 SL: 201; Risk per deal: 1% of a $10,000 deposit with 0.04 lot.
I do not open new positions today due to market uncertainty.
The risk per deal is 1%. A Stop Loss is placed beyond the high/low of the day, depending on the direction of the trade. I do not set a Take Profit. A Stop Loss is moved beyond 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!
