MARKET ANALYSIS & CURRENT DEVELOPMENTS:

  • Mobile Wallet giant PayPal recently launches Business unit dedicated towards cryptocurrency and is looking at entering into more diverse avenues in the future.
  • South African regulators warn crypto investors to be prepared to lose all cryptos following the collapse of Bitcoin Trading company MTI.  
  • Bitcoin overtakes GOLD in the US as the 4th most popular investment vehicle.
  • Mysterious Dogecoin address absorbed 27% of the supply and the top 10 addresses absorbed 50%, all linked with the recent rally.    
  • Guggenheim investments increase Bitcoins fair value estimate to their target of $600K in the long run.  
  • After the recent episode with Robinhood and Gamestop, Mark Cuban pointed out to investors that BTC holders are a great example to follow.    
  • World’s largest Hedge Fund Bridewater Associates has crypto in their future plans, founder Ray Dalio calls Bitcoin ‘One Hell of an Invention’.
  • Bitfinex Pointed out that it had repaid tether for $550M loan at centre of NYAG Probe.
  • Binance suspends deposit from Nigeria following the Central Banks Directive.
  • Bitcoin surges after Musk adds “Bitcoin” to his Twitter Bio.   
  • Indian Exchanges Launch Campaign seeking to avert potential Crypto Ban.
  • Hackers are trying to mine crypto using Russian Government servers which is proving to be cost efficient as they are backed by the government.

Historical Performance and What to Trade for this Week

1. BTC Weekly Trade Ideas (Historical Performance Check & Projections)

Support at $29,000 And Resistance at $33,500 (Historical predicted on 24th January)

How It went – BTC Weekly Trade Ideas (Historical Prediction) – Breakout caught by our AI based Indicator with an Upside of 20% in 2 weeks as it broke our support levels and never crossed the resistance at $33,500.

Trade for the Future: 7th Feb to 20th Feb 2021 

  • Support at $38,000- If this level is broken with large volumes then SELL from $38,000 with a potential 25% profit till the level of $30,400-$31,200.
  • If the Levels of $38,000 is held, then BUY at $38,000 with a potential upside till $46,800 producing an approx. 20% gain.
  • If the resistance at $42,000 is broken with large volume then BUY and have take-profit at levels of $46,800- potential profit of 10% – 15%.
  • If the resistance is not broken then SELL at $42,000 and hold till $38,000 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.

2. ETH Weekly Trade Ideas (Historical Performance Check & Projections)

Support at $1150 And Resistance at $1400 (Historical predicted on 24th January)

How It went – ETH Weekly Trade Ideas (Historical Prediction) – ETH Broke both our resistance and gave a 30% Profit in 2 weeks.  

Trade for the Future: 7th Feb to 20th Feb 2021

  • Support at $1600- If this level is broken with large volumes then SELL from $1600 with a potential 15% profit till the level of $1450-1490.
  • If the Levels of $1600 is held, then BUY at $1600 with a potential upside to $2000 producing an approx. 25%-30% gain.
  • If the resistance at $1760 is broken with large volume then BUY and have a take profit at levels of $2000-$2100 potential profit of 20%.
  • If the resistance is not broken then SELL at $1760 and hold till $1450 for a potential 20% 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. S&P 500 Weekly Trade Ideas (Historical Performance Check & Projections)

Resistance at $3,886 And Support at $3,820 (Historical predicted on 24th January)

How it Performed – Breakout Caught 5-7% Gain in 2 weeks as it swung both ways and was perfect for swing trading.

Trade for the Future: 7th Feb to 20th Feb 2021 – The asset gave a breakout in the previous 2 weeks, Support at 3,820 and Resistance at 3,886

  • If the resistance at $3,886 is broken with large volume then BUY and have take-profit position at levels of $3,940- potential profit of 2%-3%.
  • If the Levels of $3,886 is not broken then SELL at $3,886 with a potential upside to $3,780 making it approx. 3-4% gain.
  • If the Support at $3,820 is broken then size up the SELL position even more until the index consolidates at $3,780-$3750 making it a potential 2-3% gain from the short at $3,820.

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 analyze the movement.

4. Gold Weekly Trade Ideas (Historical Performance Check& Projections)

Support at $1,820 And Resistance at $1,870 (Historical predicted on 24th January)

How it Performed – The asset Is broke the support and gave a 5%-7% breakout in the past 2 weeks.

Trade for the Future: 7th Feb to 20th Feb 2021 

  1. If the resistance at $1,830 is broken with large volume then BUY and have a take profit at levels of $1,950- potential profit of 4%-6%.
  2. If the Levels of $1,830 is not broken then SELL at $1,830 with a potential upside to $1,700 making approx. 5%-7% in profits.
  3. If the Support at $1,780 is broken then size up the SELL position until the index consolidates till $1,650-$1600 making it a potential 10-12% gain from the short at $1,780.

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. 

CONTINUE YOUR LEARNING

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