Work summary 09/17/2018 - 11/17/2018

Work summary 09/17/2018 - 11/17/2018


General market condition

For the past two months were marked by very significant events in the crypto industry, each of them had a serious impact on the market.

Out of the main triggers of market movements, one should reckon on the following:

  • The USDT has not been a stable coin for a long time. The price of the once main "cryptodollar" is constantly fluctuating, shaking both its own positions on the market and the position of the Bitfinex exchange, the "theoretical" collapse of which is a serious FUD factor for market participants.
  • The BTC emerged from the global consolidation movement, which continued in recent months and deprived medium-term traders of their earnings due to the absence of volatility. The exit brought disappointment to many market participants - hopes for the "2018 rally" began to melt every day. For 10 days, from November 14 to November 24, the main cryptocurrency collapsed by 40%, breaking through global support by $ 6,000 and dropped below $ 4,000.

At the same time, the capitalization of the crypto market is less than 130 billion dollars. It is worth noting that such a rapid decline correlates very closely with the fall of the US technology sector in the stock markets. Perhaps we are seeing how the crypto market becomes part of this sector itself.

In addition to all the market turmoil, the leaders of the Bitcoin Cash project had serious disagreements that developed into an open war. As a result, we have witnessed the BCH hardfork and the miner resources pulling back from the service of the Bitcoin network. Hashrate of the last one began to decline due to falling prices.

In general, decadent sentiments prevail in the market: hedge funds announce bankruptcy, private miners turn off equipment due to unprofitable mining, ordinary traders and retail investors lose faith in the industry. We are close to the stage of despair and apathy ... and accordingly to the birth of a new global growth cycle.

Trading strategies

The past 60 days in terms of trading strategies can be divided into 2 periods:

1. The period of global consolidation of BTC in the region of 6k USD and in the whole market in general. Due to the lack of a trend movement, short-term trading prevailed in pairs with the dollar and the use of a moderate volume of asset in transactions. Opened both long and short positions.

2. Breakthrough period for BTC global support at 6000 USD. At this stage, it was decided to remain out of the market in most situations due to extreme volatility and breaking through several supports in a relatively short time. To gain profit short-term oversold markets were exploited.

For altcoins, positions were partially fixed due to a downward exit from global consolidations in order to buy out at lower prices.

Unfortunately, the fund's deposit has a drawdown at the moment, mainly due to the rapidly losing value of the altcoins.

Recommendations for next month trading

The market remains bearish throughout 2018. So far there are no markers indicating a change in this trend. If you took a short position during the consolidation of the market - continue to hold it until there are signs of a weakening trend.

For those who did not have time or were afraid to open short positions earlier, we do not recommend doing it now. BTC can rebound strongly from any of the long-standing delays that are densely present at these levels. It is better to open short positions from higher levels (if the market provides such an opportunity).

Also, during the period of short BTC consolidations on the falling steps, you can try to buy off the Altcoins - they often tend to grow slightly at such times (be sure to use stop losses with this tactic).

In general, I would like to note once again that the market makes it possible to work and earn in any situation. You need to be able to correctly assess and use these situations. Our team looks to the future with enthusiasm, not sharing the general negative sentiment in the market. On the contrary, we are looking for profitable entry points to the market now for maximum profit in the future.

We also give you the opportunity to familiarize yourself with the new services of our Bittrade Group platform.