Crypto Academy Season Two Week 6: Homework Post for @stream4u by @salma78
Hello to all steemians on this noble platform, I write with much excitement to accomplish my homework task assigned by prof @stream4u.
I will like to thank prof @stream4u for giving us such an educative lecture this week. Indeed I have really enjoyed this week's course and learned a lot.
The Technical Details of Reverse Strategy
Reverse Strategy refers to the technical analysis of cryptocurrencies that enables traders to acquire huge profits especially when the market trend of the currency is drawing back or moving in the reverse direction. This strategy is used in gaining profits when the market trends are going downwards. The direction of the trend of an asset leading to the bullish or bearish season is due to the results of traders selling their assets and closing positions within 24 hour.
This strategy is best used when the price of the currency attain a percentage of 20% or more within a 1-day circle and also when the asset's price has accomplished a 1-day circle. i.e. a 24-hour circle.
The reverse strategy also has risky times when one is not supposed to go in for certain positions and I will throw more light on that. Here, when the asset's price is in the bearish phase, then it is not advisable to go in for a buy position. On the contrary, when the asset's price is at the bullish phase, it is not advisable to move in for a sell position.
How the Reversal Strategy Works
The reverse strategy is used when the cryptocurrency's price has a change of 20% or more than and when its price also begins to go in bullish or bearish. When these situations occur, investors pull back their assets to gain profits which later tends and this depreciates the price of the asset. The closing and opening price is what helps to identify the position to go into trading.
Terms Used in Reversal Strategy
- Open:This shows the opening price of the asset at the beginning of the day.
- Close:This portrays the closing price of an asset at the end of the day.
- High point:This shows the highest price of an asset in a 1-day circle.
- Low Point:This shows the lowest price of an asset in a 1-day circle.
Bearish Reverse Strategy
The reverse strategy gives a sell position when the opening price of the next/new candle draws closer to the closing price of the previous candle.
An example is shown below with the XRP/USDT Chart.
XRP/USDT
Bullish Reverse Strategy
The reverse strategy provides a buy position when the current opening price of an asset draws closer to the previous closing price of the asset. An example is shown below from the XRP/USDT Chart.
XRP/USDT
Stoploss using Reverse Strategy
Stoploss is a point that shows when and where an exit strategy is supposed to be implemented in a trade. The Exit point is placed above the previous candles and the stoploss is placed below the previous below. This is indicated below from the chart of XRP/USDT.
Stoploss Above
CoinGecko
CoinGecko refers to a platform that helps traders by providing them with important information about cryptocurrencies on their platform. CoinGecko is founded by TM Lee and Bobby Ong. CoinGecko provides information such as price charts, price fluctuations, trading volume, the market capitalization of coins, etc.
CoinGecko makes it very easy for its users to quickly identify any cryptocurrency on their platform by ranking them in terms of the market capitalization of the currencies. CoinGecko doesn't permit buying and selling of cryptocurrencies on its platform.
How CoinGecko can be helpful for you in a crypto market?
- CoinGecko helps by providing information about developers of some cryptocurrency projects.
- They help in giving a detailed analysis of some cryptocurrencies in the coin market
- They provide their users with a portfolio which makes it very easy for them in tracking and managing their assets
- They play an important role in the real-time price data of a coin.
- They make it easy in selecting a cryptocurrency to invest in.
- They provide users with information regarding comments and posts of some cryptocurrency on their platform.
Exploring COINGECKO features with information
There are a number of features on the CoinGecko platform and I would try my best possible to explore them.
homepage
We have from the homepage interface the menu which shows the number of coins available on CoinGecko, Exchanges, Market Cap, 24h Volume, Dominance, and ETH Gas. The value of all these features is shown in the screenshot taken below.
Coins
This feature has a lot of sub-features and I will try to explore some of these features. The following include the sub-features under the coin feature; market cap Rank, recently added, categories, discover, large movers, high volumes, perpetual leveraged ETFs, and Futures.
Market Cap Rank
This can be indicated as seen below from my screenshot when exploring it;
The coin ranked first is bitcoin followed by Ethereum coin and then Tether then followed by Binance coin.
Recently Added
This feature shows coins that are recently added to the cryptocurrency market. It shows its 24hour volume and also the time it was added and its price or market value.
Categories
This feature is a new one which is recently added to the CoinGecko platform. It helps to categories all the coins in terms of their market capitalization. It also indicates the number of coins available in each category. For example, stablecoins have 56 coins under them and Exchange-based tokens have 218 coins under their category.
Discover
This feature helps users to easily find cryptocurrencies by categorizing them under trending search, most voted coins, and Positive sentiment coins.
Large Movers
This feature helps display cryptocurrencies that are top gainers and those that are also top losers within 24 hours in the crypto market.
High Volumes
This feature helps to rank the top 100 cryptocurrencies in terms of their trading volume.
Perpetuals
This feature helps in indicating cryptocurrencies' perpetual contracts in terms of open interest and trading volume.
Future
This also shows top cryptocurrency future contracts ranked in terms of open interest and trading volume.
Leveraged EFTs
This feature also ranks EFTs in terms of their trading volume.
Exchanges
This feature comprises three other features which include Spot, DEX, and Derivatives.
The Spot feature displays top cryptocurrency exchanges in terms of ranking them by Trust Score-Spot.
The DEX feature ranks top Decentralized Exchanges on Coinecko Platform in terms of Trading Volume.
The Derivative feature under the exchanges is a booming feature on the CoinGecko platform. It aids by arranging top derivative exchanges in terms of open and Trading volume.
DeFi
This feature displays the top Decentralized cryptocurrencies in terms of market capitalization.
List of DeFi coins
NFT
NFT feature has two other features under it. The NFT coins and the NFT Spotlight feature.
The NFT Coins feature displays NFT coins by ranking them in terms of market capitalization.
NFT Spotlight
Portfolio
This feature indicates the assets that a user owns or has invested into and keeps track on them over here.
Publications
There are several features under this menu and these include the following; Crypto reports, newsletter, podcast, blog, Books, Guides such as glossary.
I will look at a few.
Crypto Reports
2021 Crypto Reports
CoinGecko Podcast
CoinGecko Blogs
Books
There are two books on the CoinGecko platform namely how to bitcoin and how to DeFi which teach about Bitcoin and DeFi respectively. You can get a copy by purchasing from the CoinGecko website.
How to DeFi
Resources
This menu also comprises many features under it and these include; earn Crypto, yield farming, compare coins, explore all coins, bitcoin halving, Bitcoin and Ethereum treasury, Beam Updates, and Lates News.
Top Yield Farming
Compare coins
Bitcoin Treasury
Latest News
Products
This menu provides features such as Premium Subscription, Mobile App, Store, Crypto API, Widgets, Request Form, and Methodology.
Premium Subscription
Products on CoinGecko's Store
Crypto APIs
Google Request form for CoinGecko
Widgets
Community
This is the last menu I will be looking at; this menu includes social media platforms that CoinGecko can be found on and these include the following, Twitter, Telegram Chat, Telegram News, Instagram, Reddit, Discord, Facebook, and Youtube.
The Weekly Price Forecast for Cryptocurrency: (BTC/USD)
Bitcoin
Under this question, I will like to analyze the BTC/USD pair currency.
Bitcoin was founded in January 2009 by an unknown company called Satoshi Nakamoto. As of now the developer of Bitcoin currency is now known. It operates on the blockchain network. Bitcoin currency has the most dominance in the crypto market which is about 42% dominance with Ethereum as 17% and the remaining altcoins competing with the rest percentage.
It is the most famous cryptocurrency in the crypto market and it is ranked at #1 in terms of market capitalization. It is used as a method of payment for products. Bitcoin currency is tradable and minable.
Why Bitcoin
Bitcoin's Statistics
| Overview | Statistics |
|---|---|
| Market Price | $38,3310.32 |
| Market Cap | $716,927,815,075 |
| Circulating Supply | 18,713,700.00 BTC |
| Fully Diluted Market Cap | $809,410,458,645.18 |
| Trading Volume | $87,853,724,327.31 |
I selected bitcoin over the other cryptocurrencies because of its high market value and also it is a trusted cryptocurrency that is ranked at #1 in the coin market. I selected it because of how useful it is. It is a good currency that can withstand the crisis of fiat currency in the cryptocurrency market and has really proven this. It is not a centralized system of blockchain and so it doesn't need any central authority to regulate its administration. Bitcoin has been compared with the value of gold because of its ability in keeping assets securely.
Technical Analysis on Bitcoin Currency Using the MACD Indicator
I would be analyzing BTC/USD using the MACD line indicator. This strategy relies on the use of the MACD line and the signal line in detecting the future trends of a crypto coin.
Let's consider the following chart
The last support showed the price of BTC to be around $37,600 and its resistance is at $63,000. From the chart again, we can see that the macd line is moving in an upward direction and trying to cross over the signal line indicating a bullish trend. My prediction in the coming next week is that the price of BTC can reach $50,000 when the macd line crosses above the signal line. It can notice from the chart that, the histogram has started to decrease towards the zero line and when it reaches the zero line, then a possibility of the price of BTC rising is high.
Conclusion
Thanks to all for reading my post. It's been interesting joining this week's lecture and I have really understood and learned a new trading strategy. I hope to implement this new trading strategy in my trades. I say thank you to @stream4u for teaching this great and educative lecture. Stay Blessed and I wish for you convenience in your work.
Hi @salma78
Thank you for joining The Steemit Crypto Academy Courses and participated in the Homework Task.
Your Homework Task verification has been done by @Stream4u, hope you have enjoyed and learned something new.
Thank You.
@stream4u
Crypto Professors : Steemit Crypto Academy
#affable
Thank you for your kind review. I wish you convenience in your work. I am very grateful Sir.