Bitcoin Reverses! | And More in This Week’s Crypto Update
Get up to date on the latest analysis and trading tips with our Crypto update week 11
- Bitcoin Reverses!
- RNDR 200% Profit Potential
- Trade Polygon (MATIC) with the MESA Like a Pro
- MAGIC in the Middle of a Strong Bull Run
Bitcoin Reverses!
After a 22% downturn, BTC reverses at the $19,500 and is currently heading higher.
The Details: Over the last two weeks, Bitcoin experienced a significant downturn, dropping by more than 20%. The Relative Strength Index (RSI) reached oversold levels for the first time since the FTX-induced crash of November 2022. The RSI is a technical indicator that measures the strength of an asset’s price action. When it reaches oversold levels, it suggests that the asset may be undervalued and due for a rebound.
Bitcoin Still Bullish?
As soon as the RSI became oversold, buyers came in and pushed up the price of Bitcoin by 15%. This helped Bitcoin rise above the $21,500 level, which is an important resistance level for the asset. The lowest level BTC reached in this short-lived downturn was $19,500, which is the midpoint between the two essential levels of $21,500 and $18,000.
This is significant because sometimes, when the price of an asset is falling, it does not always reach the support level, but rather it stops at the midpoint between the support and resistance. This also means that the asset is still rather bullish. Therefore, we can expect further gains in the near future.
Bottom Line: In conclusion, Bitcoin experienced a significant downturn over the last two weeks but has since rebounded and is still rather bullish.
RNDR 200% Profit Potential
RNDR has the potential to increase by 200% from its current price; let’s see why!
What is RNDR? Render Token (RNDR) is a decentralized platform that allows users to access and share computing resources. The platform is built on the Ethereum blockchain and uses a token-based system to reward users for sharing their resources.
The Ups and Downs of RNDR
RNDR has had one of the best-performing cryptocurrencies this year, with a peak of 440% higher from January 1st to February 7th. This rise in value can be attributed to the increasing demand for decentralized computing resources.
Since February 7th, RNDR has lost almost 60% of its value. However, the downturn appears to have stopped at the $0.75-$1.00 support level, which we identified in our last analysis, in addition to the 150 SMA, which acts as a mobile support. This is an important level for RNDR, as it has previously acted as both support and resistance.
Potential profit
If the current support level holds, and RNDR heads towards its next resistance of $3.50-$4.00, the price should see an increase of 180%-220% from the current level.
Bottom line: RNDR is an exciting project that is at the forefront of the decentralized computing revolution. Render Token is well-positioned to capitalize on the increasing demand for computing resources. If the current support level holds and RNDR heads toward its next resistance level, the price should see a significant increase in the near future.
Trade Polygon (MATIC) with the MESA Like a Pro
Let’s see how you can trade MATIC successfully with the MESA Adaptive Moving Average.
You can download the strategy along with the template described in this analysis on Cryptohopper for free now!
Firstly, what is MATIC? Polygon, formerly known as Matic Network, is a Layer 2 scaling solution for Ethereum that aims to improve its performance and provide a better user experience. MATIC is the native token of the Polygon network and is used for governance, staking, and as a payment method.
What is the MESA adaptive moving average?
The MESA adaptive moving average is a technical indicator that adapts to market conditions by changing its sensitivity based on the volatility of the asset being traded. This means that it can adjust to both fast and slow-moving markets, making it a versatile tool for traders.
The MESA adaptive moving average is calculated by taking the average of a series of prices over a given period and adjusting it based on the volatility of the market. It can be used to identify trends, support and resistance levels, and potential buying or selling opportunities.
Trading Polygon (MATIC) with the MESA
We backtested multiple parameters in order to find the best ones for MATIC. As usual, with our backtests, we assumed a 0.1% fee per trade, all trades were taken with the entire account, and there was no slippage. The backtesting period was from 2019–04–17 to the present day.
To achieve the best results, we recommend using the following parameters:
Chart period: 4 hours
Fast Limit: 0.6
Slow Limit: 0.06
In addition, we suggest using the following settings in the template:
Take profit: 24%
Cool down after sells: 4 hours
With these parameters and settings, we achieved a profit of 81,437.69%, which was significantly better than the buy-and-hold strategy’s 20,025%. The maximum drawdown was 59%, which is less than 88% of the buy and hold.
Please note that we have optimized this strategy for MATIC, and while it appears to beat the buy and hold on both BTC and ETH as well, we do not know how well it would perform on other coins.
Bottom Line: The MESA adaptive moving average is a versatile technical indicator that can be useful for trading cryptocurrencies. By using the recommended parameters and settings outlined in this article, traders can achieve better results than the buy and hold.
Disclaimer: Past performance does not guarantee future success, as markets can change at any time!
MAGIC in the Middle of a Strong Bull Run
MAGIC is currently experiencing one of the strongest bull runs in the whole market. Let’s see why!
What is MAGIC? MAGIC is a utility token used as a cross-game currency to connect gaming communities in the Treasure Metaverse, a decentralized NFT ecosystem on Ethereum’s Layer 2 scaling solution. It launched in September 2021 and serves as a reserve currency for the metaverse. Players can earn MAGIC tokens through gaming, mining, and participating in Treasure’s games, including Bridgeworld, Beacon, and Realm.
MAGIC’s Crash and Recovery
Unfortunately, like many other cryptocurrencies, MAGIC had a terrible year in 2022. It lost almost 97% of its value, which was one of the worst declines in the industry.
However, after the November market crash, MAGIC’s price began to turn around and slowly started a bull run. From November 2022 until February 17, 2023, the token gained over 1,000%, which is one of the biggest rallies seen for a top 100 market cap coin. Despite this rally, the coin is still 65% below its all-time high, which was reached in February 2022.
MAGIC Respects its Support and Resistance Levels
One interesting feature of MAGIC is that it is one of the few altcoins that actually respects its support and resistance levels. Most altcoins go right through their previously established zones. However, MAGIC is different in this regard and is more likely to bounce off them. This means that technical analysis can be more reliable when trading this cryptocurrency.
MAGIC’s Current Price Action
MAGIC has recently bounced off of the $1.00 support and is currently heading toward its current resistance at $2.25. If the price breaks above this level, it will probably head towards the next resistance at $3.50.
Bottom Line: While MAGIC experienced a rough year in 2022, it has since shown signs of recovery and is currently in the midst of a significant bull run. Its unique feature of respecting its support and resistance levels may make it an interesting choice for technical traders.
