Choppy markets have defined the crypto space since Bitcoin (BTC) sold off on April 19, and indecisive markets like these can test the patience and fortitude of even the most dedicated traders and analysts, especially when the incessant calls for a bottom are met with lower lows. While the periods of low trading volume and whipsaw price movements may be the perfect conditions for whale-sized traders to play in, the average investor doesn’t stand a chance, especially with multimillion-dollar funds now beginning to get in on the action. Data shows that instead of day trading and attempting to time the …

Trading should just be a simple process of buying low and selling high but for many investors the process is more akin to rocket science. One of the most basic and easy-to-understand strategies that can help accomplish this is to identify an asset’s support and resistance levels. Once traders can spot the support and resistance levels, they can improve their entry and exit timing in the market. Support and resistances are also helpful during bullish, bearish and range-bound markets. Let’s take a moment to understand the basics. What are supports? Support is formed at a level where the demand from …

The most important aspect in trading is to correctly identify the long-term trend. Once this is done, the rest of the steps are not very difficult because all a trader needs to do is look for buying opportunities in an uptrend and selling opportunities in a downtrend. In reality, many traders complicate the process by waiting for lower levels to buy in a bull market and missing a large portion of the rally. Then, when the trend reverses and the price starts falling, the same traders start buying, which usually results in losses. To avoid this pitfall, traders can incorporate …

Bitcoin’s (BTC) succession of sharp corrections from its all-time high at $64,900 has turned investor sentiment negative, at least for the short-term. While some analysts believe the bottom may have been hit, others are warning of a further fall due to the “Death Cross” pattern that, at the time of writing, is on the verge of completion. For new traders, the name death cross itself brings a lot of negativity and a feeling of impending doom. This sentiment can trigger selling panics, especially if the market has already been going through a bear phase prior to the pattern being spotted. …

Welcome to Cointelegraph Market’s weekly newsletter. This week we will identify emerging-sector trends across the cryptocurrency landscape in order to broaden your understanding of market cycles and better equip readers to take advantage of the microcycles that are a regular occurrence in the larger market structure. The cryptocurrency sector has an established reputation for being volatile and fast-moving, and these characteristics were on full display in May as the rapid decline in the price of Bitcoin (BTC) from $60,000 to $33,000 led to a mass exodus that wiped off $1.2 trillion in value from the total market capitalization. While many …

The Moving Average Convergence Divergence, also called the MACD, is a trend-following momentum indicator used widely by traders. Although the MACD is a lagging indicator, it can be very useful in identifying possible trend changes. The MACD oscillates above and below a zero line, also known as the centerline. The shorter moving average is subtracted from a longer moving average to arrive at the value of the MACD. A signal line, which is the exponential moving average of the MACD completes the indicator. The blue line is the MACD and the red line is the signal line. When the blue …

When an asset enters a bear phase and the headlines are negative, analysts project further downside, and the sentiment shifts from optimism to pure gloom and doom. This results in panic gripped traders dumping their positions near the bottom of the downtrend instead of buying. How can traders go against the herd and build the courage to buy in a bear market? It is not easy because if they purchase too early, the position may quickly turn into a loss. However, if they wait for too long, they may miss the early part of the rally. Although pulling the trigger …

A trade is profitable only if both the purchase and the sale are done at the right time. Many times, traders sell their positions too early and leave profits on the table or they keep holding on to the trade even after the trend changes. This leads to profits evaporating, and many times the trade turns into a loss. While it is important to trade with the trend, it is also important to keep an eye out for signs of a reversal. If traders learn to spot these warning signs, they can avoid buying at the tops and selling at …

Crypto traders are drawn to the market by its bombastic growth and lucrative opportunities to make a profit. However, not every investor is seeking volatility or using degenerate leverage levels to gamble at derivatives exchanges. In fact, stablecoins usually comprise half of the total value locked (TVL) on most decentralized finance (DeFi) applications that focus on yields. There's a reason why DeFi boomed despite Ethereum network median fees surpassing $10 in May. Institutional investors are desperately seeking fixed income returns as traditional finance seldomly offers yields above 5%. However, it is possible to earn up to 4% per month using …

The first step to successful trading is the identification of medium- and short-term trends. Traders who remain on the right side of the trend and use risk management principles usually end up earning profits. An equally important activity in the trading process is calculating the entry. Many times, traders are afraid to pull the trigger in the optimal moment and end up missing a large part of the rally. As they see the markets move higher from the sidelines, the urge to buy keeps increasing, and many times, they end up buying near the top. To avoid such mistakes, it …

Technical analysis, the study of chart patterns, is a tool that helps traders increase their edge over others. This is done by keeping the trader on the right side of the trend and providing warnings when the trend is about to reverse. There are many indicators and patterns that can accomplish this task but there is no one particular indicator that fits the bill for all market conditions. Therefore, traders prefer to use a combination of indicators, which come in handy both during trending and range-bound markets. However, this does not mean the trader should clutter every chart with all …

Bitcoin may be suffering through a succession of negative news stories, but some crypto investors are still celebrating major gains in 2021’s altcoin bull market. Since January 3 this year, Cointelegraph Markets Pro has been live-testing 42 separate automated strategies based on the proprietary VORTECS™ algorithm developed in partnership with The TIE, a data analytics firm. Let’s not be humble about this: VORTECS™ has crushed it. Of those 42 strategies, every single one has beaten the return on investment (ROI) delivered by Bitcoin for hodlers who refuse to part with their BTC. And even when compared to holding an evenly-weighted …