Volume forecast for Bitcoin on April 1, 2021 - BUY. Gains for two months is +8.2%

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  1. How to make money on cryptocurrencies?
  2. Analysis of volumes for Bitcoin futures from the Chicago Mercantile Exchange (CME).
  3. Analysis of the trend.
  4. Japanese candlestick analysis.
  5. Conclusions. Statistics.

1. How to make money on cryptocurrencies?

What are the first steps a novice trader needs to take to start making stable money on cryptocurrency? The first important step is to trade using your own trading system. Unsystematic trading is a path to losses.

A trading system is an algorithm, a set of rules for trading. The trading system can be invented, or it can be taken from some sources. But without a trading system, a novice trader will not be able to trade successfully. With experience, some traders may trade intuitively, but this approach is definitely not for beginners. And the first trading system should be simple and easy to trade.

The system should have few rules, and it must be written down. Until the trading system is formalized, it is too early to trade. In the trading system, you need to answer the following questions:

  • When and where will you enter the market?
  • When and where will you exit the market?
  • What is the risk per trade and the entire account?
  • What is the volume of the market entry?

In the process of learning how to trade, the rules of the trading system will be formed. But until this happens, it is too early to trade. No trading system, no trading.

2. Analysis of volumes for Bitcoin futures from the Chicago Futures Exchange (CME).

Yesterday was a tough day for trading (see image at the beginning of the article). The price first rose, then there was a sharp drop, and it rose again by the evening. Such a movement probably led to the triggering of many stop-losses. These movements in cryptocurrencies are not uncommon, so stop-losses should always be placed with a certain filter from daily extreme points. But Bitcoin continues to look at the storming of the high, which is what traders should be preparing for. Let's take into account the levels of maximum horizontal volumes from the Chicago Mercantile Exchange. These volumes show the activity of major players.

03/30/21 - Maximum horizontal volume level (POC - Point Of Control) - 59400

03/31/21 - Maximum horizontal volume level (POC - Point Of Control) - 60015

The point of control continues its ascent as the bulls win the battle. But there was no strong movement yesterday. Today, the price is below the POC level, which means that the strength at the sides is running out and the bears are trying to actively sell at the highs, but the trend is still upward. In this situation, it is worth considering purchases from the point of view of volume analysis.

3. Analysis of the trend.

A trend is like the flow of a river. It's always easier to go with the flow. Trade with the trend and you will gain profit. To analyze the trend in these forecasts, an exponential moving average is used:

  • Long-term trend - EMA 1152 (blue) on the H1 chart, which is an analogue of EMA 48 on the D1 chart;
  • Medium-term trend - EMA 288 (red) on the H1 chart, which is an analogue of EMA 48 on the H4 chart;
  • Short-term trend - EMA 48 (black) on the H1 chart.

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The correct trend positioning of the price and EMA continues in the market: price - short-term EMA - medium-term EMA - long-term EMA. The strong upward trend continues, but the price is very close to the EMA 48, and there may be a trend reversal. But until this happens, it is worth considering buying from the point of view of trend analysis.

4. Japanese candlestick analysis.

Market analysis using Japanese candlestick analysis is the third step in this trading system. Let's analyze yesterday's daily candlestick:

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Yesterday's candlestick is white, the closing is at the top. Candlestick configuration is a Hammer pointing up, but the shadows are large both below and above. It is worth buying today in terms of Japanese candlestick analysis.

5. Conclusions. Statistics.

  • Volumetric analysis - BUY
  • Long-term trend - BUY
  • Medium-term trend - BUY
  • Short-term trend - BUY
  • Japanese candlestick analysis - BUY

General conclusion: On April 1, 2021, you can buy bitcoin, since different types of analysis give the same forecasts, and there is an upward trend in the market.

Only statistics can show the effectiveness of any trading approach. According to these forecasts, transactions are made on a separate account and open statistics of these transactions are provided. Transactions are made in four instruments: Bitcoin, Ethereum, Litecoin, and BCH / USD, which are analyzed in the same way. The result for two months in 2021 is + 8.2%. Statement:

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At the moment, the following transactions are open:

03/31/21 Bitcoin BUY: 58773.8 SL: 56700; Risk per trade: 1% of the deposit. When you deposit $ 10,000, a lot is 0.05.

1.04.21 Ethereum BUY: 1950.85 SL: 1751; Risk per trade: 1% of the deposit. When you deposit $ 10,000, a lot is 0.51.

The risk per trade is not more than 1%, this approach is conservative. Stop Loss for this system is set behind the high or low of the day, depending on the direction of the deal. Profit is given the opportunity to grow without restrictions, since I do not set take profit. I accompany the transaction by moving the Stop-Loss for the extremes of the upcoming sessions.

Since trading is carried out on daily charts, this recommendation is relevant throughout the day.

Trade with the trend and you will gain profits!

The material has been provided by InstaForex Company - www.instaforex.com

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