Market Trends
Market Watch Info

General

NOTE: NOTHING ON THIS PAGE SHOULD BE CONSIDERED INVESTMENT ADVICE AND IS FOR EDUCATIONAL PURPOSES ONLY

 

In the documentation we strive to inform how strategies perform in varying market scenario's. Recognizing what kind of market we're currently in takes some basic knowledge about technical analysis. To help you with this, we've pulled together a Market Watch Dashboard with some key charts, data and tools for you to determine what the markets are doing at a glance. This combined with the 'Strategy Finder' should give you an idea what strategies to deploy and how to get most out of your hopper(s).

Daychart Timeframe

For market assessment we're focusing on the daily timeframe, as trading bots are already designed to operate at the smaller timeframes. If you prefer manual oversight, it is recommended to check in on this dashboard 2-4 times per month to verify that your hopper is set-up favourably. 

Bitcoin Price Chart

Bitcoin strength much reflects of overall cryptomarket strength as it is the largest crypto by market cap. Therefore, crypto market assesment starts with a glance at the Bitcoin chart. 

Bitcoin Dominance

Bitcoin Dominance

Bitcoin Dominance

If Bitcoin Dominance is falling, this means that altcoins are performing better than Bitcoin as well as the correlation between Bitcoin and altcoins. This makes it more interesting to trade heavier / more agressively against altcoins. Alternatively, when the dominance chart is downtrending it may also be interesting to set Bitcoin as base currency, as accumulating more Bitcoin will be easier. If Bitcoin Dominance is rising, you might want to trade heavier against Bitcoin and be more careful trading altcoins. 

Key takeaways:

  • When the Bitcoin Dominance chart is falling this is generally bullish for crypto in general and specifically for altcoins.

  • This makes it interesting to allocate / trade heavier against altcoins for the duration of the trend.

  • Potentially interesting to set Bitcoin as base currency as this way your hopper will primarily trade against coins that are performing stronger than Bitcoin. 
     

  • If Bitcoin dominance is in a clear uptrend, this is generally more bearish for the overall crypto market as capital is moving out of altcoins.

  • Best to trade heavier more selectively against altcoins and focus on accumulating crypto's with solid fundamental outlook.

  • Recommended to set a stable coin as base currency

Cryptocurrencies Performance

Overview of performance on multiple timeframes and measured volatility of crypto's in the past months. Volatility (price-action) means the amount of price difference a coin experiences in either direction. Generally speaking, traders like volatility as it presents trade opportunities. Higher volatility (more price action) and good performance may make given crypto more interesting to include in your trading config. Volatilty can also help to fine-tune your stop-losses, take profit, 

Key takeaways:

  • Performance and volatility may be factors to consider when selecting coins. Bear in mind that past performance does not guarantee future results. 

  • Volatility can be factored in when finetuning stop-losses, DCA triggers, take profit etc.

Altcoin Market Cap

BTC is left out of the equation here. Note how closely related its chart is however to the Bitcoin chart. If the Altcoin Market Cap is increasing, this means altcoins are looking bullish, making heavier/more agressive altcoin trading interesting. Conversely, if altcoins are dropping, it is best to run with bear market strategies, using stop-losses and/or accumulation strategies for your favorite crypto or even temporarily stop/reduce trading altogether. 

Key takeaways:

  • When the Altcoin Market Cap is rising this is generally bullish for crypto in general and specifically for altcoins.

  • This makes it interesting to allocate / trade heavier against altcoins for the duration of the trend.

  • DCA as primary risk-management 
     

  • If Altcoin Market Cap is falling, this is generally bearish for the overall crypto market as capital is moving out of altcoins.

  • Best to trade selectively against altcoins and focus on accumulating crypto's with solid fundamental outlook.

  • Shorting strategies may be explored

  • Stop-losses as primary risk-management 

Fear & Greed Index

Overall sentiment. Not an indicator in itself. The general perception is to be cautious when the markets are overly greed as it is more prone to reversal. If the markets are overly fearful trend is also more likely to reverse up.

DXY (dollar performance)

For many crypto holders, inflation concerns have been a primary reason to get into crypto in the first place. Especially after the FED's intensive money printing during COVID, dollar and many other fiat currencies are devaluating. A downtrending DXY is good for crypto as it increases investors hedging capital against inflation with crypto. Not an indicator, but a parameter to keep an eye on.

BTC shorts

If sentiment is bearish, daytraders are likelier to short Bitcoin with leverage. This generates selling pressure. Spikes in this chart are likely to push the Bitcoin price down. If there are rumors, chart patterns or other data pointing at a potential crash, keep an eye out for this charts and be wary of spiks. Note how the BTC shorting chart spiked at the 17th of May and the Bitcoin price crashed two days later, taking the entire cryptomarket with it. With spikes like this, it is a good idea to convert your crypto more heavily in stable currencies and turn the hopper off until the dust clears. If you want to keep trading, strategies that are able to short the market may be explored. 

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