MARKET ANALYSIS & CURRENT DEVELOPMENTS:

  • Bitcoin will continue to rise regardless of who wins the US Election. In a recent update, Mnuchin promises a second stimulus check, which means that more money will be printed leading to a devaluation of the currency and causing a rise in price of deflationary assets like BTC & GOLD.
  • Glassnode Projects 63% of BTC is owned by Hodlers- people holding the asset for longer than 2-3 years. This is always a good sign as whenever some positive news comes it will cause a rapid increase in price due to weak supply and increasing demand.
  • India’s Largest Private Sector Bank, HDFC, has turned towards cryptocurrency. They have partnered with Ripple Labs and will start testing the ripple blockchain for cross border transactions. If successful, the current SWIFT infrastructure for cross border payments can be permanently replaced.
  • Ark investment which is known for betting large on the future claims that Bitcoin’s aggregated market value could skyrocket past $1-5 Trillion in the next 5-10 years.
  • Bitcoin price sets the record for most number of days above the level of $10,000 in its history, claiming a good consolidation zone between $10,000-$12,000.
  • Bitcoin is becoming scarce. 88% of all the bitcoins have been mined while the balance 12% will be mined only by the year 2100 making the asset extremely scarce in nature.
  • Bitcoin Outperforms the rest (GOLD, NASDAQ and S&P 500) in terms of Year to Date returns- It’s up 48.7 %.
  • Bitcoin Without Internet. Venezuela developed a first Bitcoin Satellite node which can process transactions without the Internet.  
  • KuCoin hackers stole $200 million from the exchange which they transferred to Defi protocols and distributed it to different coins, making it harder to track the transaction but the hack had no effect on the price of BTC.
  • Virgin Galactic CEO Chamath Palihapitiya claimed that his best bet has been on Bitcoin and is slowly sizing up more of his position on the network.
  • Bitcoin 200- Day Moving average predicts that the price of the Asset can never go below $6,700.

Weekly Cryptocurrency Analysis – 3 to 10 October 2020

What and When to trade:

1. BTC Weekly Trade Ideas

  1. Support at $10200- If this level is broken with large volume then SELL from $10,200 with a potential 10% correction in the price to levels of $9,000
  2. If the Levels of $10,200 is held then BUY at $10200 levels with potential upside to $11,000 levels producing an approx. 8% gain.
  3. If the resistance at $10,900 is broken with large volume then BUY and book profits at levels of $12,000-potential profit of approx. 18-20% from 10,200 levels.
  4. If the resistance is not broken then SELL at $10,900 and hold till $10,200 for a potential 7-9% profit.

Key conditions to look at:

  • The support and resistance levels should be broken with large volumes (Keep Volume Indicator active)
  • The 1 Hour Candle should close below the Support or above the resistance to give confirmation that the level has been broken.
  • Use a minimum 1-Hour chart to make a trade and analyse the movement.

2. ETH Weekly Trade Ideas

  1. Support at $346- If this level is broken with large volumes then SELL from $346 with a potential 10% profit till the level of $320-$316.
  2. If the Levels of $346 is held, then BUY at $346 with a potential upside till $370 producing an approx. 10% gain.
  3. If the resistance at $370 is broken with large volume then BUY and have a take profit at levels of $420- potential profit of 20%.
  4. If the resistance is not broken then SELL at $364 and hold till $343 for a potential 10% profit.

Key conditions to look at:

  • The support and resistance levels should be broken with large volumes (Keep volume indicator active).
  • The 1 Hour Candle should close below the Support or above the Resistance to give confirmation that the level has been broken.
  • Use a minimum 1-Hour chart to make a trade and analyse the movement.

3. Defi Short Idea: Yearn Finance

  1. If Yearn.Finace breaks the $20,000 support, we are of the view that it will nose dive to $10,000 levels without much headwind.
  2. If support at $20,000 is broken take a short position with a take profit near the region of $10,000- a trade which can give a potential 50% profit in the coming few weeks’ time.

Key conditions to look at:

  • The support and resistance levels should be broken with large volumes (Keep volume indicator active).
  • The 1 Hour Candle should close below the Support or above the Resistance to give confirmation that the level has been broken.
  • Use a minimum 1-Hour chart to make a trade and analyse the movement.

4. S&P 500

  1. If the resistance at $3,400 is broken with large volume then BUY and have take profit position at levels of $3,500- potential profit of 2%-3%.
  2. If the Levels of $3,387 is not broken then SELL at $3,400 with a potential upside to $3,200 making it approx. 5% gain.
  3. If the Support at $3,200 is broken then size up the SELL position even more until the index consolidates at $3,000 making it a potential 10-12% gain from the short at $3,400.

Key conditions to look at:

  • The support and resistance levels should be broken with large volumes (Keep volume indicator active).
  • The 1 Hour Candle should close below the Support or above the Resistance to give confirmation that the level has been broken.
  • Use a minimum 1-Hour chart to make a trade and analyse the movement.

5. Gold Trade Ideas

  1. If the resistance at $1,920 is broken with large volume then BUY and have a take profit at levels of $1,980- potential profit of 2%-3%.
  2. If the Levels of $1,980 is not broken then SELL at $1,980 with a potential upside to $1,850 making approx. 5% in profits.
  3. If the Support at $1,850 is broken then size up the SELL position even more until the index consolidates till $1,750 making it a potential 10-12% gain from the short at $1,980.

WRITTEN BY

Devnsh Khullar | Co-Founder, AiNALYTIX

Using the power of Artificial Intelligence and Quantum computing, AiNALYTIX (AiX) is able to provide various indicators and instruments, including their proprietary the Alpha Signal Generator (ASG), to generate a significant edge in the Cryptocurrency and Stock markets. 

WRITTEN BY

Devnsh Khullar | Co-Founder, AiNALYTIX

Using the power of Artificial Intelligence and Quantum computing, AiNALYTIX (AiX) is able to provide various indicators and instruments, including their proprietary the Alpha Signal Generator (ASG), to generate a significant edge in the Cryptocurrency and Stock markets. 

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