The mood of the crypto market shifted from “a new bear market started” to “long live the bull market” in a matter of weeks.

Looking at the big picture of the crypto market capitalization starting from the bottom in March 2020, things become clearer. The excessive euphoria that grew during the first months of 2021 needed a reset. The RSI captured this general weakness precisely, with lower highs diverging from higher highs during the market trend.

It was easy to confuse the large crash in May with the beginning of a prolonged downtrend period. But as the market rebounded exactly at the bottom of the upward trend, investors and traders found the confidence to turn bullish once again.

The rebound also occurred at the 61.8% Fibonnaci level, enhancing the importance of that area as strong support in the future. In the short term, 23.6% is the first support in case of a pullback. Consolidation in the green box would be beneficial for the long-term development of the trend. Should Bitcoin cool off below $50,000, that could be a good opportunity for Altcoins to have their moment of glory .

Accumulating on dips and scalping long strategies are still the best way to capitalize on the current market condition. The trend is always your friend, after all!

The post Back on Track appeared first on Coinrule.

As the crypto market consolidates after a raging bull run, traders scramble to see where the chips have fallen. Lets compare ETH vs BTC

An interesting chart to look at is ETH vs BTC . Now that the initial excitement is wearing off, it is perfect for recalibrating and considering a longer-term perspective. Here, we see the last four years of the ETH/BTC chart. We see that during crypto booms, ETH outperforms BTC . However, most of the time, ETH/BTC generally trades lower than where it currently is and seems to revert to its mean eventually.

The current level is where ETH historically failed to hold onto its gains multiple times in the past. This time seems to be a different story, as the support is holding well despite the brutal recent sell-off. It’s worth noticing that the chart presents a series of lower highs during the previous cycle, while this week, the price could print the first-ever higher low above this crucial level.

On the other hand, the trading pair is still trading well below the all-time high valuations of 2017 and 2018, and that should pause caution for investors. Keeping an eye on this chart will provide valuable insights into the best time to rotate the portfolio again from Bitcoin into Altcoins.

For all investors on their crypto trading bot journey, watch out for some exciting times ahead.

The post The Great Comeback appeared first on Coinrule.

Investors and traders are people with emotions, fears, and biases. To overcome the uncertainty of every aspect of daily life, they need things that give them a feeling of safety. Bear market, Bull market, Or?

Assigning a specific “label” to events, objects, or other people’s behavior helps everyone categorize what happens around us to fit our mind schemes.

When trading, often happens the same process. It has been weeks now that traders struggle to answer the question, are we in a bear market?

Why is that so important to assign a label to current market conditions when you need to look at the price?

Interestingly, in 2019, the price of Bitcoin increased by 200%, but no one recalls a Bull market in 2021, even if such performances in any other asset class may have been well labeled so. That’s likely because crypto price moves have a different scale.

Fibonacci retracements are a valuable way to gauge the magnitude of a price move. Despite the 200% surge, Bitcoin only retraced 61% of the drowdown experienced during the Bear market. Applying the same logic to the current price action, Bitcoin has found support precisely around the same 61% level calculated from the bottom in September 2020.

Should the current support hold, the label “Bear market” will be archived quickly, again.

The post Bear Market, Bull Market, Or? appeared first on Coinrule.

Did you hate the market crash this week? Don’t blame Elon, either China or JPMorgan. Let’s talk about managing trade risk.

The market was overheated, and newcomers needed to learn the most important lesson of investing. Nothing comes easy, and there is no free lunch. Those who survived this sharp price drop carefully managed their risk, maybe with a stop loss in place. But the best tip to get by the volatility of the market is to stay focused and stick with your original plan.

Looking at the past for similar patterns may also be helpful. History never repeats but often rhymes. Bitcoin went through the same path last year, between July and September (shown at the bottom of the chart). A long sideways market anticipated a severe price correction that led to another month of price consolidation before picking up again with higher confidence.

Patterns like these show clearly how the demand and supply of an asset redistribute around key levels. As a reminder, once Bitcoin broke above the previous high at $12,000, its price skyrocketed 250% in three months. If the same scenario unfolds, Altcoin may have a further upside for a while before Bitcoin gathers investors’ and traders’ full attention.

Remember to manage the risk carefully until more signs of strength show up. A missed profit is worth more than a realized loss!

The post No Free Lunch appeared first on Coinrule.

Those that joined the cryptocurrency space a few years ago may remember the first puzzle they faced.

Where should I buy cryptocurrencies? Hacks, scams, downtimes, and poor user experience were a real pain. Those that recently started their crypto-journey don’t have as much to worry about. Prominent players gained a solid reputation for offering safe and easy options.

Coinbase is undoubtedly one of them, and yesterday they offered cryptocurrencies a privileged spotlight when they got listed on the NASDAQ, a US stock exchange. Crypto officially meets Wallstreet.

In 2020, Institutional investors made news announcing their interest in cryptocurrencies, and now the traditional financial market values one of the main crypto-players at $100 billion. At such a high valuation, the total market capitalization of all cryptocurrencies ( Bitcoin included!) all of a sudden seems cheap.

Looking at the chart of the total crypto market, it’s clear how things are heating up. Prices have been rising steadily since March 2020 on growing volume . The smaller channel, starting from February, now looks like a consolidation after the sharp gains in January that led valuations to double.

A new breakout here would signal a new wave of likely stronger FOMO. But watch out to manage your risk and gradually take profit on the way up. The faster the growth, the more the downside risk will increase!

The post Crypto Goes Public appeared first on Coinrule.