FX.co ★ Bitcoin volume analysis for April 15, 2021

1.How to make money on cryptocurrencies?

2. Analysis of Bitcoin futures volume on Chicago Mercantile Exchange

3. Trend analysis.

4. Japanese candlestick analysis.

5. Conclusion. Statistics.

1. How to make money on cryptocurrencies?

To have stable earnings from trading cryptocurrency, a trader must be able to use different types of trading systems. Moreover, you should make a portfolio from these different trading systems. As a result, you will be able to manage your capital. Trading systems may differ in the method of market analysis:

- Fundamental analysis. This is an analysis of economic, political, and technological factors that affect the movement of financial instruments. For example, based on this analysis, you can create a portfolio of promising cryptocurrencies and hold them for a long time. This is a long-term approach. In addition, you can conduct short-term trading based on fundamental factors. This could be news trading. For example, a trader may try to catch the first impulse after some important news on cryptocurrency comes out. Trading systems based on fundamental analysis can be effective and generate huge profits. However, qualitative fundamental analysis takes time and a sound understanding of the issue.

- Technical analysis. This is a very popular method of market analysis. In technical analysis, you can analyze the dynamics of the price on the trading chart in the past. Based on it, you can make a forecast for the future. There are several types of technical analysis: graphical analysis, indicator analysis, Japanese candlesticks, and wave analysis. This variety of market analysis methods allows you to develop hundreds of trading strategies. On the basis of technical analysis, traders often create short-term and medium-term trading systems.

It is important for a trader to study and understand different trading approaches. There is no universal trading strategy. Portfolio trading with several trading systems rather than just one trading strategy will be able to provide you with a stable income.

2. Analysis of Bitcoin futures volume on Chicago Mercantile Exchange (CME).

Bears are trying to keep the level. Apparently, traders are locking in profits at highs. Yesterday, bitcoin advanced dramatically. Let's consider the levels of the maximum traded volumes based on the Chicago Mercantile Exchange. These indicators show the activity of major market players.

13.04.21 - The level of the maximum traded volume (POC - Point Of Control) - 63745

14.04.21 - The level of the maximum traded volume (POC - Point Of Control) - 63970

The POC has moved up, albeit slightly, the price is below yesterday's maximum traded volume. The upward trend was cancelled, the market entered a sideways correction. In such a situation, according to the volume analysis, you can open both long and short positions.

3. Trend analysis.

The second step in this analysis is to determine the short-, medium-, and long-term trend. It is worth opening trades when the direction of all three trends coincides. Trend analysis is carried out with the help of an exponential moving average:

Long-term trend - EMA 1152 (blue) on the H1 chart, this is an analogue of the EMA 48 on the daily chart;

Medium-term trend - EMA 288 (red) on the H1 chart, this is an analogue of EMA 48 on the H4 chart;

Short-term trend - EMA 48 (black) on the H1 chart.

The upward trend was cancelled. The price dropped below the EMA 48. Although three EMAs are directed upwards, the upside momentum is waning. Today, according to the trend analysis, you can open both long and short positions.

4. Japanese candlestick analysis.

Market analysis with the help of Japanese candlesticks is the third step in this trading system. Let's analyze yesterday's daily candlestick:

Yesterday's candlestick is black, it closed downwards. The high is above yesterday's high. The candlestick pattern is Doji, with a small body and long shadows. There is a balance of power in the market. According to the Japanese candlestick analysis, you can consider both buy and sell orders.

5. Conclusion. Statistics.

Volume analysis - BUY SELL.

Long-term trend - BUY.

Medium-term trend - BUY.

Short-term trend - SELL.

Japanese candlestick analysis - BUY SELL.

Conclusion: On April 15, 2021, you can open both long and short positions on bitcoin in the short term as different types of analysis provide different forecasts.

To analyze the effectiveness of this trading approach, we should use statistics. Based on these forecasts, we track the data on completed transactions and open new deals in a separate account. Transactions are made on four instruments: Bitcoin, Ethereum, Litecoin, and BCHUSD. They are analyzed in the same way. Statement:

We continue to keep the long position on bitcoin open.

The risk is not more than 1% per trade, this approach is conservative. According to this system, a stop-loss order is placed beyond the daily low or high, depending on the direction of the trade. We do not set take-profit orders, enabling the price to grow without limits. We follow the trade, moving SL beyond the extreme points of the future sessions.

Since trading is carried out on the daily charts, this recommendation remains relevant throughout the day.

Trade along the trend and you will make a profit!