Bitcoin Breaking Resistance Levels and Predicting The Future | And More in This Week’s Crypto Update
- Bitcoin (BTC) Analysis: Breaking Resistance Levels and Predicting The Future
- Is CRO a hidden gem?
- MASK Comes Back In Force
- Trading DOT with the Stochastics and MESA
Bitcoin (BTC) Analysis: Breaking Resistance Levels and Predicting The Future
Bitcoin (BTC) has been making headlines recently as it continues to break resistance levels and soar to new heights. In this article, we will analyze the current state of Bitcoin, its recent price movements, and what we can expect from the cryptocurrency in the near future.
Breaking Resistance Levels
Bitcoin recently broke above the $25,000 resistance level that was identified in our previous analysis. As a result, this level will act as support from now on. The coin is currently hovering around the minor $28,000 level, and if it manages to break above this resistance, the next major level to look out for is $34,000. Following this, there is a minor resistance level at $48,000.
Bitcoin’s 4-Year Cycle
One interesting thing to note about Bitcoin is that it follows a 4-year cycle, which makes it very predictable. Four years ago, after the intense bull run of 2018, Bitcoin had a temporary bull run in 2019 when the coin went up to $14,000; its all-time high at the time was $20,000. If we get a similar rally this year, BTC should reach around $48,000-$50,000.
While Bitcoin’s 4-year cycle provides some predictability, it’s important to remember that trading is not an exact science. The scenario we have presented is the most likely one, but nothing is stopping Bitcoin from going further up to $60,000 or stopping short at $40,000.
Bottom Line: Bitcoin is currently breaking resistance levels and showing no signs of slowing down. With its 4-year cycle and current momentum, we can expect Bitcoin to reach new heights in the near future. However, it’s important to remember that trading is not an exact science, and anything can happen. As always, it’s crucial to do your own research and make informed decisions when investing in cryptocurrencies.
Is CRO a hidden gem?
CRO may have one of the biggest growth potentials for the next bull run; let’s see why!
What is CRO? Cronos (CRO) is a cryptocurrency token that powers the Cronos Chain blockchain developed by Crypto.com. The blockchain is used to power the Crypto.com Pay mobile payments app and is part of Crypto.com’s efforts to promote the adoption of cryptocurrencies. CRO was launched in November-December 2018 and is planned to be expanded to power other Crypto.com products in the future.
In 2022, CRO experienced a severe bear run, which saw it fall by 95%. The token has not yet seen a strong bull run like many others.
Potential Growth
While this may seem like a negative point, it’s important to remember that not all coins experience a strong bull run at the same time. Some coins start their bull run earlier and finish earlier, while others start later and finish later. This means that CRO may still have a lot of growth potential compared to other coins that have already made a big move.
To put this into perspective, CRO will have to increase by more than 1,000% from its current price in order to reach its all-time high. So investing $1,000 would turn into $10,000 if this happens.
It’s also important to note that CRO is an exchange token, which means that it’s very dependent on the health of the Crypto.com exchange. This carries extra risk, as any issues with the exchange could negatively impact the value of CRO. However, at the same time, if the exchange is doing very well, so will CRO.
Bottom Line: While CRO may not have made any strong movements yet, it has a lot of potential for future growth. As an exchange token, it’s important to keep in mind the risks associated with CRO.
MASK Comes Back In Force
After a major bear market in 2022, MASK is back in force. Let’s see what comes next!
What is MASK? Mask Network is a protocol that enables users to send encrypted messages over social media platforms. The project was launched in July 2019 and received $2 million in funding in November 2020 and $3 million in February 2021. The platform offers Gitcoin grant campaign funding through Twitter and plans to introduce peer-to-peer payments and decentralized storage features. It allows users to access DApps like crypto payments, decentralized finance, e-commerce, and decentralized organizations over existing social networks, creating a DApplet ecosystem.
MASK’s Performance in 2022
MASK was among the cryptocurrencies that were hit hardest in 2022, losing almost 95% of its value in the bear market. The token saw minimal volume and nearly no movements from May to October 2022, which led many to believe that the token was dead.
However, MASK’s fortunes changed dramatically in November 2022, when the token’s price appreciated an astonishing 440% in only five days. The volume also returned in force, and MASK has been in a volatile uptrend ever since, continuing to make higher lows and higher highs.
Looking Ahead: After reaching a new high a few days ago, MASK is more likely to drop in the short term. The most probable place where that drop will end is the 150 SMA, which currently acts as a mobile support and is priced around $3.30.
Trading DOT with the Stochastics and MESA
Let’s discuss how you could make a suitable trading strategy to trade Pokadot (DOT) with the Stochastics and MESA.
You can now download the strategy for free!
What is DOT? Polkadot is an open-source sharded multichain protocol designed to connect and secure a network of specialized blockchains, allowing them to be interoperable with each other. It serves as a foundation for a decentralized internet of blockchains, or Web3. Polkadot has a layer-0 metaprotocol that autonomously updates its codebase through on-chain governance. The protocol allows for the creation of new applications, institutions, and services on its network. The native DOT token is used for staking, facilitating network governance, and bonding tokens to connect parachains. Polkadot has four core components: Relay Chain, Parachains, Parathreads, and Bridges.
What are the Stochastics and MESA?
Stochastics: The Stochastics Indicator is a technical analysis tool that helps traders identify overbought and oversold conditions in the market. It measures the momentum of price movements and compares the closing price to the trading range over a given period of time. Trading signals are generated when the indicator’s readings cross overbought or oversold levels, typically at 80 and 20 on the scale. When the indicator crosses above 80, it suggests that the asset is overbought and may be due for a price correction. When the indicator crosses below 20, it suggests that the asset is oversold and may be due for a price rebound. However, on Cryptohopper you can change these conditions.
MESA: The MESA Adaptive Moving Average (MAMA) is a technical analysis indicator that adjusts its smoothing period based on the volatility of the market being analyzed. It is designed to provide a responsive moving average that reduces lag and provides better trend-following signals. The MESA consists of two lines, the MAMA and the FAMA. On Cryptohopper the MESA will keep sending a buy signal for as long as the FAMA is above the MAMA, and it will keep sending a sell signal for as long as the FAMA is below the MAMA. This makes the MESA an excellent indicator to be used as a filter.
The Strategy
The strategy will involve entering a position when the MESA and the Stochastics send a buy signal, and it will exit when the Stochastics send a sell signal.
The idea behind the strategy is that we use the MESA to find a positive trend and then the Stochastics to buy at the low points of the trend, and sell at the high points of the trend.
We have optimized the values of the indicators after backtesting them on DOT. As usual we assumed a 0.1% fee per trade, no slippage, and all trades were taken with the entire account. The backtesting period was 2020–08–20 to 2023–03–23.
The indicator settings were the following:
Buy Stochastics
• Chart period 1-Hour
• Fast-K Period 12
• Slow-K Period 3
• Slow-D Period 3
• Signal when value is less than or equal to 33
• Everything else stays as default.
Sell Stochastics
• Everything the same as the buy Stochastics, except:
• Signal when value is greater than or equal to 78
MESA
• Chart period 1-Hour
• OHLCV Value Close
• Fast Limit 0.1
• Slow Limit 0.08
This strategy brought total returns of 1,106.5%, which is significantly more than the 104% of the buy and hold for the same period. Another very positive aspect of the strategy is that the Max Drawdown was only 27%, which is a lot less than the buy and hold of 92%. Therefore the strategy is not only a lot more profitable than the buy and hold, but also a lot safer.
Disclaimer: Past performance does not guarantee future success, as the way the market fluctuates can change at any time.
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