Category: NEWS

Investing in any financial asset can be a tricky exercise, but this is especially true for the fast-paced cryptocurrency market, which comes with its own unique set of pitfalls and challenges. 

A popular saying dictates that it takes 10,000 hours to master a skill and become an expert. In cryptoland time, this is measured in market cycles, which subject each trader to a few trips on the roller coaster of volatility as a crash course on navigating the market.

Here are five important lessons every trader should learn when it comes to investing in cryptocurrency bull markets.

Rule #1: No one ever went broke taking profits

Since the early days of crypto, the community has been proud of its “hodl” nature, with the volatility in the price of Bitcoin (BTC) and other tokens haven shaken coins out of paper hands and into those of the true believers who comprise today’s crypto aristocracy.

Few like to bring up the “not your keys, not your crypto” movement anymore, partially due to the fact that liquidity and money velocity are important factors in a healthy functioning market, but also because simply hodling as the market rises and then falls has resulted in fortunes achieved on paper simply fading away with the onset of a bear market.

When a cryptocurrency has made significant gains, especially if the price went parabolic in a near-vertical line on its trading chart, the best move is to take profits and allocate those funds either to stablecoins or different assets whose trading cycles are not exhausted.

The fact of the matter is that nothing keeps going up forever, and in the cryptocurrency market, the fall can often be as fast and as hard as the rise.

If selling a token is difficult due to personal attachments and a bullish long-term outlook, it helps to consider that after a parabolic move and consolidation phase, it’s possible to acquire even more of the tokens with the cashed-out funds once the dust settles.

Rule #2: Don’t FOMO — there’s always another coin

One experience that just about every crypto investor has gone through is having the urge to buy a particular coin and resisting, only to see it take off like a rocket the following day and go on a two-week-long moonshot that sees its price increase tenfold.

At this point, FOMO — the fear of missing out — kicks in and becomes so strong that a large market order is placed and filled at the top of the market. The result of this is usually some unexpected pullback where the newly opened position loses half its value in just a few short hours as early holders follow Rule #1 and take profits.

Don’t FOMO!

Once a coin has started going parabolic, just watch from the sidelines. Mentally congratulate those who caught the rally, and repeat the following: “There is always another token.”

A quick survey of past bull markets will show boatloads of token pumps and token dumps in bull and bear markets, proving that there is no shortage of opportunities to get in early on high-flying projects and book solid gains amid the fast-paced hype cycles that the cryptocurrency market is known for.

Rule #3: It isn’t going to be like last time

Technical analysts often like to assert that crypto follows a series of predictable cycles, which they use to validate certain pieces of their craft. Holding this perspective allows them to apply past market cycles to the current price chart as a way to predict what comes next.

In 2021, this belief led to yearlong proclamations that Bitcoin was going to $100,000 and beyond, only it topped out under $69,000 and limped into the close of the year without any sign of the highly anticipated blow-off top.

Over the course of the year, the market was compared to the 2017 bull rally, then the 2013 rally and finally a combination of the two rallies as chartists struggled to explain in which part of the cycle the market was and where it would go next.

In the end, the 2021 rally saw a unique double-top unlike any previous market cycle and could possibly extend into 2022 in alignment with the prediction by some that the four-year cycle is lengthening.

The main takeaway is not to expect the market to perform as it has previously and focus on trading the market you have. Follow the trends in price, and make sure to keep Rule #1 and Rule #2 in mind.

Related: US senators Lummis, Gillibrand reveal working on bipartisan crypto legislation

Rule #4: Play trend cycles carefully

In every crypto bull cycle, there is one sector that comes out of nowhere to dominate headlines and produce 100x gains.

2021 saw the rise of memecoins, the arrival of nonfungible tokens (NFTs) and the advent of play-to-earn gaming, much to the chagrin of Bitcoin maximalists and those who “are in it for the tech.”

When new trends like these begin to emerge in the cryptocurrency market, it’s wise to keep in mind the power of the cryptocurrency hype cycle and, if possible, get a little exposure to some of the tokens in that sector that have yet to start moving.

This is strictly a mostly short-term play and is most often a case where Rule #1 is applied in full, as the vast majority of new arrivals to the altcoin market flare out within the first year.

Rule #5: Don’t spend all your time focusing on the crypto market

This final rule is meant to help maintain a healthy life balance and peace of mind. There is far more to life than investing in cryptocurrencies, or any other market.

Just as all investment portfolios should be well-diversified, so too should your everyday experiences in the wider world.

A vast majority of the big moves in crypto happen in a matter of days or weeks, and the rest of the year is full of sideways markets and rangebound trading.

Conduct a decent amount of research, make your picks, follow Rule #1, and then use some of those profits in other parts of life to have more fun and diversify your experience to better enjoy the most precious commodity of all: time.

Want more information about trading and investing in crypto markets?

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

This week Bitcoin (BTC) and select altcoins broke above their immediate resistance levels and moved higher, which propelled the total crypto market capitalization above $2 trillion on March 24.

One of the triggers that could have driven crypto prices higher was BlackRock CEO Larry Fink’s letter to shareholders where he said that the Russia-Ukraine conflict has opened up avenues for digital currencies to be used as a mode of settlement for international transactions.

Another bit of news that may have aided the up-move in crypto prices was that Goldman Sachs redesigned its website with emphasis on the growth of digital assets and the metaverse, mentioning them as “megatrends.”

Apart from the increasing institutional interest, Minneapolis Federal Reserve President Neel Kashkari’s statement that the central bank could raise interest rates up to seven times in 2022 to curb inflation may also have boosted bullish sentiment in cryptocurrencies.

Can bulls sustain the higher prices and build upon the up-move or will bears sell aggressively and trap the buyers? Let’s study the charts of the top-10 cryptocurrencies to find out.

BTC/USDT

Bitcoin closed above the immediate resistance at $42,594 on March 23, indicating that bulls absorbed the supply by the bears. That opened the doors for a move to $45,400 where the bears could again mount a strong defense.

Both moving averages have turned up gradually and the relative strength index (RSI) is in positive territory, indicating an advantage to buyers. If buyers push the price above $45,400, the BTC/USDT pair could rally to the resistance line of the ascending channel.

If the bulls clear this obstacle, the pair could rise to the stiff overhead zone between the psychological resistance at $50,000 and $52,000.

Any correction from the current level is likely to find support near $42,594 and the moving averages. The bears will have to pull and sustain the price below the moving averages to indicate that the bulls may be losing their grip.

ETH/USDT

The bulls are trying to sustain Ether (ETH) above the resistance line of the symmetrical triangle but the long wick on the candlestick suggests that bears are aggressively selling at higher levels.

The moving averages have completed a bullish crossover and the RSI has risen into the positive zone, suggesting that the path of least resistance is to the upside. If the price sustains above the triangle, the ETH/USDT pair could rally to $3,500 and later to the pattern target at $3,907.

Contrary to this assumption, if the price re-enters the triangle, the bears will try to pull the pair to the moving averages. If the price rebounds off the moving averages, it will suggest that the sentiment remains positive and traders are accumulating on dips. That will increase the possibility of a break above the triangle.

The bears will have to pull the price below the moving averages to negate the bullish view. The pair could then extend its stay inside the triangle for a few more days.

BNB/USDT

Binance Coin (BNB) has been consolidating in a large range between $445 and $350 for the past few days. There is a minor resistance at $425 but if bulls clear this hurdle, a move to $445 is possible.

The moving averages have completed a bullish crossover and the RSI is in the positive territory, which suggests a possible change in trend. A break and close above $445 could open the doors for a possible rally to $500.

Alternatively, if the price turns down from the current level or the overhead resistance and breaks below the moving averages, it will suggest that traders may be booking profits near the resistance. That could keep the BNB/USDT pair stuck inside the range for a few more days.

XRP/USDT

XRP is facing strong resistance at $0.86. A minor positive is that the bulls have not allowed the price to break below the moving averages. This suggests that traders are not rushing to the exit.

If the price turns up from the current level or rebounds off the moving averages, the bulls will strive to clear the overhead hurdle at $0.86. If they succeed, the XRP/USDT pair could rally to $0.91 and thereafter rise toward the psychological level at $1.

The rising moving averages and the RSI in the positive territory indicate advantage to buyers. This positive view will be negated in the short term if the bears sink and sustain the price below the 50-day simple moving average ($0.77).

ADA/USDT

Cardano (ADA) is attempting to start a new uptrend. When the bulls pushed the price above the overhead resistance at $1 on March 23, it was the first indication that the bears may be losing their grip.

The next level to watch on the upside is $1.26 where the bears will try to stall the relief rally. If the price turns down from the current level or the overhead resistance, the bears will try to pull the ADA/USDT pair to the critical level at $1.

If the price rebounds off $1 with strength, it will suggest that the bulls have flipped the level into support. The buyers will then make one more attempt to clear the obstacle at $1.26. If they succeed, the next stop could be $1.60. This positive view will invalidate if the price breaks below $1.

LUNA/USDT

Terra’s LUNA token once again turned down from the overhead resistance at $96 on March 24 suggesting that bears are not willing to give up easily. The price could now slide to the 20-day exponential moving average ($89).

If the price rebounds off the 20-day EMA, it will suggest that bulls are defending this level. The buyers will then make one more attempt to clear the overhead hurdle at $96. If they succeed, the LUNA/USDT pair could rise to the all-time high at $105.

Conversely, if the price turns down and breaks below the 20-day EMA, it will suggest that traders may be booking profits due to the failure of the pair to rise above $96. The price could then drop to $82 and next to $75.

SOL/USDT

Solana (SOL) broke and closed above the 50-day SMA ($93) on March 23. This move also invalidated the bearish descending triangle pattern. Strong buying by the bulls has pushed the price to the immediate resistance at $106.

The moving averages are about to complete a bullish crossover and the RSI is in the positive territory, which indicates that bulls have the upper hand. If buyers drive the price above $106, the SOL/USDT pair could rally to $122.

Alternatively, if the price turns down from the current level but bounces off the 20-day EMA ($91), it will suggest that the sentiment remains positive and traders are buying the dips. That will enhance the prospects of a break above the overhead resistance.

A break and close below the 20-day EMA will suggest that the pair may consolidate between $81 and $106 for a few more days.

Related: Beware the Bitfinex whale: New $45K BTC sell wall appears amid worries Bitcoin could retrace

AVAX/USDT

Avalanche (AVAX) has been trading between the overhead resistance at $92 and the moving averages. This suggests that bears are selling near $92 and bulls are buying on dips to the moving averages.

If the price turns up from the current level or rebounds off the moving averages, the bulls will again attempt to clear the overhead hurdle at $92. If they manage to do that, the AVAX/USDT pair could pick up momentum. The bears may try to stall the rally at the psychological level at $100 but if bulls overcome this barrier, the rally could reach $119.

This positive view will invalidate in the short term if the price breaks below the moving averages. Such a move will suggest that the pair may remain range-bound between $92 and $65 for a few more days.

DOT/USDT

Polkadot (DOT) has continued its upward journey which could reach the overhead resistance at $23. The bears are expected to mount a strong defense at this level.

If the price turns down from $23 but bulls do not cede ground, it will indicate that traders anticipate a move higher. That will increase the likelihood of a break above $23. If that happens, the DOT/USDT pair could rally to $28 and thereafter to $30.

Conversely, if the price turns down from the current level or the overhead resistance and breaks below the moving averages, it will suggest that the bears are active at higher levels. That could keep the pair range-bound between $23 and $16 for a few more days.

DOGE/USDT

Dogecoin (DOGE) broke above the 50-day SMA ($0.13) on March 24 but the bulls are struggling to sustain the higher levels. This indicates that the bears are not ready to give up their advantage.

The 20-day EMA ($0.12) has started to turn up and the RSI is in the positive territory, indicating that bulls have the upper hand. If the price rebounds off the moving averages, the bulls will again try to clear the overhead resistance and push the DOGE/USDT pair toward $0.17.

Alternatively, if the price turns down and breaks below the moving averages, it will suggest that the breakout on March 24 may have been a bear trap. The sellers will then try to pull the pair to the strong support at $0.10.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

The week-long uptrend in the cryptocurrency market has begun to awaken bullish crypto investors and the successful March 15 launch of the Ethereum “merge” on the Kiln testnet has the community excited about the upcoming switch to proof-of-stake. 

Data from Cointelegraph Markets Pro and TradingView shows that since the successful launch on Kiln, the price of Ether has climbed 25% from $2,500 to a daily high at $3,193 on March 25 as traders look to lock in their positions ahead of the merge.

Here’s a look at what analysts in the market are saying could happen with the price of Ether as the merge approaches and how the switch to POS could affect its price long term.

A clear breakout from the downtrend

The turnaround in Ether price over the past couple of weeks was succinctly addressed by crypto analyst and Justin Bennett, who posted the following chart highlighting the trend reversal that has occurred.

Bennett said,

“Ether first higher high since early Nov. 2021. Probably nothing.”

The merge will be a bullish development

A deeper analysis of the effects the upcoming merge for Ethereum will have on its price was discussed by analysts from the independent global macro and crypto research house MacroHive, who noted that the merge “will have bullish implications for Ether.”

According to MacroHive, “the prospect of being able to make a passive return on staked Ether will attract more investors into the space,” while the transition to proof-of-stake “will reduce Ethereum’s energy consumption by 99.95%.”

This will in turn help to attract more institutional money into the Ethereum ecosystem as the Environmental, Social and Governance (ESG) concerns “around the energy consumption of mining/proof-of-work are mitigated.”

The merge will also have a notable impact on the circulating supply of Ether as the net issuance will undergo a significant drop-off once completed as block rewards are replaced with Ether staking yields.

MacroHive said,

“This, coupled with the ongoing Ether burning should make Ether deflationary and this should be bullish overall.”

Related: Crypto rallies to $2T market cap as institutions signal readiness to enter

Merge could mirror Bitcoin halvenings

A final bit of insight into the effects of the upcoming merge was put forth by options trader and pseudonymous Twitter user McKenna, who posted the following tweet likening the effects of the merge to that of Bitcoin halvenings.

The merge is a crowded trade but so is the BTC halvening.

Only difference is ETH becomes a deflationary asset W/ EIP1559.

S-curve adoption as the foundational web3 protocol is going to send ETH to monumentous heights over the next decade.

You aren’t ready Anon.

— McKenna (¤, ¤) (@Crypto_McKenna) March 23, 2022

The overall cryptocurrency market cap now stands at $1.997 trillion and Ether’s dominance rate is 18.7%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Bitcoin (BTC) was up nearly 5% in 24 hours at the Wall Street open on March 25, but a new warning sign was giving traders cold feet.

Bitfinex whale flips to sell mode

Data from Cointelegraph Markets Pro and TradingView confirmed BTC/USD hitting multi-week highs of $45,137 on March 25 as Wall Street got underway.

As $45,000 reappeared for the first time since the start of the month, however, so did all-too-familiar behavior among some of Bitcoin’s biggest investors.

Attention turned to exchange Bitfinex on the day, a platform famous for large-volume traders, or whales, guiding short-term price action with their trades.

As noted by popular trader Pentoshi, the entity that had purchased BTC at the last low near $34,000 had now put in a significant ask position beginning at $45,000.

The finex whale who made the bottom (same signature) just showed up with a lot of asks presumably to close out those 34k longs. Something to watch in the coming days $BTC pic.twitter.com/gDR8qvBVEl

— Pentoshi (@Pentosh1) March 25, 2022

Blockware lead insights analyst William Clemente agreed, telling Twitter users that it was now “popcorn time” for the market.

Cointelegraph contributor Michaël van de Poppe, meanwhile, flagged “a dozen” possible lower price targets should BTC/USD sweep liquidity at previous rejection points from March, these also lying just above $45,000.

“I’m not saying I’m bearish at this stage, but while we’re making this build-up, I’m not really interested in longs at this point,” he said in his latest YouTube update.

Only a rechallenge of $50,000, he added, would form the impetus to consider long positions.

“No longs” on Ethereum, says trade

Van de Poppe added that altcoins were also on the radar and that it would be interesting to see how Ether (ETH), in particular, deals with upcoming resistance.

Related: What are the BTC price levels to watch as Bitcoin nears March peak?

The top ten cryptocurrencies by market cap showed clear copycat strength on daily timeframes, led by ETH/USD, which matched Bitcoin’s 5% gains.

Overall still watching how #Bitcoin is going to react at resistance, and especially how $ETH will handle it there.

Not a long area for me. pic.twitter.com/NalEyg6Jiu

— Michaël van de Poppe (@CryptoMichNL) March 25, 2022

Cardano (ADA), while dropping several percentage points on the day, was still up 35% compared to the same time last week, making it the top ten’s best performer.

It’s not every day that a country’s leader endorses a cryptocurrency project. Nayib Bukele, the President of orange-pilled El Salvador, was the first leader to endorse Bitcoin (BTC). 

Now, the prime minister of Vanuatu, the Honourable Bob Loughman, has officially given the green light to Satoshi Island.

Satoshi Island is the megaproject crypto utopia in the South Pacific tha recently disclosed to Cointelegraph its vision, progress and preparation. Hot on the heels of news that they received 50,000 citizenship nonfungible token (NFT) applications, the prime minister of Vanuatu has given his blessing to “watching the development of Satoshi Island unfold.”

For the team at Satoshi Island, the endorsement is welcome news:

“With this full endorsement from the prime minister of Vanuatu in hand, we can show everyone that Satoshi Island is as real as it gets, and the kind words of the PM inviting our community to their home could not be a warmer welcome.”

The official letter states that “the overnment of Vanuatu welcomes the Satoshi Island project and its community to our country,” while highlighting that “Vanuatu is looking for new ways to attract investment and people to our country.”

The COVID-19 pandemic “severely affected the tourism sector,” a mainstay of the Vanuatu economy, contributing 34.7% to total GDP in 2019. According to World Bank data, visitor numbers to the paradise-like archipelago 2,000 km from Brisbane dropped from circa 300,000 to 80,000 in 2020.

The team at Satoshi Island had previously told Cointelegraph that the “lack [of] tourism” was one of the pain points they wished to alleviate with their project. Fundamentally, however, the “crypto industry finally has a physical home” in Satoshi Island.

Satoshi Island is a space for crypto enthusiasts to reside — not visit — living in sustainable build homes in a community organized by decentralized autonomous organizations, or DAOs, where ownership is represented by NFTs.

Many of the past crypto megaprojects, from Akon City in Senegal to CryptoLand in Fiji, have failed. Satoshi Island’s successful team plans to “keep ideas on a need-to-know basis within the team until everything is in place to turn the idea into a reality.”

Related: ‘Satoshi Island’ crypto utopia receives 50K citizenship NFT applications

The team recommends that other planners “be very selective with the location and ensure it [is]logistically, environmentally and legally possible,” the continue suggesting to:

“Be very selective with the location and ensure […] most importantly, owning the land before you release your project is an essential step to showing your target market that what you are promoting is real and not just a pipe dream.”

With the prime minister of Vanuatu’s approval, the Satoshi Island crypto “pipe dream” is nearing reality.

Cardano (ADA) inched higher on March 25, putting itself on course recoup a great portion of losses that it had incurred in the first two months of this year.

Cardano: not so bullish yet?

ADA’s price jumped by around 7.5% in trading Friday, reaching $1.19 over a month after bottoming out at around $0.75. The Cardano token’s huge rebound move netted around 60% in gains. Nonetheless, it remained at the risk of losing its upside momentum in the coming weeks.

At the core of this bearish analogy is a multi-month descending channel pattern, with a reliable track record of causing and limiting ADA’s rebound attempts simultaneously since September 2021.

The channel’s upper trendline particularly has served as an ideal selloff zone, now being tested again as resistance, as shown in the chart below.

ADA’s daily relative strength index, now at 71.80, also alerts about its “overbought” nature. In a perfect scenario, an RSI reading above 70 leads to selloffs in an attempt to neutralize the underlying asset’s excessive valuation. That puts the Cardano token at an imminent pullback risk toward the descending channel’s lower trendline.

More signs of ADA’s potential pullback move come from its weekly charts. Notably, the Cardano token’s rebound has been having it test its 20-week (near $1.21) and 50-week (near $1.31) exponential moving averages (EMA) as resistances. They were instrumental in capping ADA’s gains in January 2022. 

Alex Benfield, analyst at Weiss Ratings, said ADA needs to reclaim $1.20 as support, a level that kept its bullish bias intact multiple times in 2021. He noted that if the Cardano token manages to do so, its likelihood of seeing a medium-term rally will be higher, adding:

“Until it clears that resistance, this move is in danger of losing momentum,” 

ADA “fundamentally bullish”

Alexander Mamasidikov, co-founder of crypto wallet service MinePlex, believes Cardano’s interim outlook is bullish despite its overbought risks.

Related: Charles Hoskinson cheekily admits: ‘I was wrong’ about DApp rollout

The executive believes that ADA’s ongoing growth momentum is more fundamental than technical, noting that the token started spiking after it became one of the assets included in the Grayscale Investment’s new altcoin fund, dubbed Smart Contract Platform ex Ethereum fund (GSCPxE).

BREAKING: Grayscale launches ‘Smart Contract Fund’ for $ETH Competitors

Fund’s Weighting:$ADA: 24.63%$SOL: 24.27%$AVAX: 16.96%$DOT: 16.16%$MATIC: 9.65%$ALGO: 4.27%$XLM: 4.06%

— Altcoin Daily (@AltcoinDailyio) March 22, 2022

“The growth is proof of how impressed investors are with respect to the revolutionary role of the Cardano blockchain in the fast-growing smart contract-powered evolution of Web3.0,” Mamasidikov asserted, albeit agreeing that levels near $1.50 could play spoilers to ADA’s upside move. Excerpts:

“Drawing from ADA’s growth trajectory, the $1 price level remains the crucial support level while the coin’s resistance is pegged at $1.5 in the short to medium term.”

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.