Welcome to the weekly edition of the CoinDesk Markets newsletter!
Every Friday we will review our cryptocurrency price predictions posted during the week via CoinDesk Markets Twitter or our private room on StockTwits, the CoinDesk Dojo.
"Trades You Missed" will feature our favorite trade ideas or technical analysis insights that accomplished impressive gains, where as "Trades We Missed" will feature those that took a turn for the worse.
Wins and losses are both part of the trading game, so we hope you will learn how to replicate our successes and minimize losses!
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Bitcoins Wild Swings Offer Opportunity
BTC/USD: Price: $11,140 | MCAP: $198.7 billion | Maximum Gain: +9.92%
Why we were intrigued:
Bitcoin faced selling pressure at the beginning of the week, falling below $10,000 on Tuesday.
The drop into four digits, however, was short-lived, as prices picked up a bid near $9,600 in the European trading hours on Tuesday and rose well above $10,500 in the following 12 hours.
The quick recovery left a bullish hammer candle on the daily chart – a sign the correction has likely ended and the bulls have regained control.
Traders and analysts usually wait for confirmation in the form of strong follow-through, preferably a daily close above the hammer candle’s high.
Our analyst, however, called a bullish move during Asian trading hours on Wednesday as the hammer candle was accompanied by positive developments in indicators.
For instance, the widely followed relative strength index was printing bullish conditions with an above-50 print. Further, the Chaikin money flow index ticked higher along with the price, indicating strengthening buying pressure.
And so the risk taken by our analysts by calling a bullish move without waiting for Wednesday’s UTC close paid off.
The top cryptocurrency rose to as high as $12,061 (Bitstamp prices) on Thursday, before falling back to $10,800 earlier today. With the latest pullback, BTC has established a bearish lower high at $12,069. So, a high-volume break above that level is needed to revive the case for retest of the recent high of $13,880. The Trade
The Result
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No Respite for Nano
NANO/BTC: Price: 1,095 sats | MCAP: $1,251 BTC | Maximum Loss: -8%
Why we were intrigued:
NANO/BTC's 4-hour chart was reporting a high-volume bearish channel breakout on Tuesday. The pattern indicated that the sell-off from July 13 highs above 2160 sats has ended and the bulls have regained control.
Further, BTC/USD was losing ground at a faster rate than alternative cryptocurrencies. As a result, the stage looked set for a rally in NANO/BTC.
So, our analyst put out a bullish forecast on CoinDeskDojo calling a move higher to 1,450-1,500 sats with stop loss below 1149 sats. The cryptocurrency was trading at 1249 sats when the bullish prediction was made.
NANO/BTC, however, nosedived to 1050 sats yesterday, as investors snapped up bitcoins below $10,000, driving the price back to $12,000. The risk of BTC suddenly changing the course was always there. As a result, a very tight stop loss of just 100 sats below the buy price was recommended.
Trading volumes, however, dropped during the pullback from 1,250 sats to 1,050 sats. So, another move higher cannot be ruled out, especially if the support at 1,023 sats holds ground for another 24 hours. The Trade
 The Result  |
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|  We're excited to announce the launch of the CoinDesk Dojo, a premium subscription part of StockTwits' recently announced Premium Rooms product. Ask the analysts—Omkar, Sam and Seb—questions about charts and talk with other traders looking to profit off the volatility of the crypto markets. Create an account on StockTwits and then subscribe! Subscribe Here |
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| Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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