BTCUSDT (Buy) | S6T4 - Team Trading Post for Fredquantum-Kouba01 Traders Team.
Hello everyone, this is the fourth week on the newly introduced steemit trading contest. In this week’s episode, I have decided to join the Fredquantum-Kouba01 Traders Team and I will analyzing some tokens here and sending them for everybody to see here. This is my first trade I’m taking this week and the details of the analysis will be seen below.
Introduction of the token and the Exchange in which it can be traded
Bitcoin is the first ever cryptocurrency that has existed. Many people did not believe that the crypto market would flourish at the beginning but due to the high performance of Bitcoin, the crypto market has been making a good headway with so many cryptocurrencies. Because of its early introduction and influence in the market, Bitcoin is referred to as the mother of all cryptocurrencies.
Source
Bitcoin is the main influencer in the market. The rise and fall of Bitcoin in the market affects the entirety of the crypto market. Different cryptocurrencies react differently to the rise and fall of the Bitcoin cryptocurrency. The prices of some cryptocurrencies rise when Bitcoin rises whilst on the other hand, the prices of other cryptocurrencies fall when Bitcoin rises. Either way, what this means is that the movement of bitcoin in one way or the other affects the movement of all other cryptocurrencies.
Till date Bitcoin still remains the biggest cryptocurrency and it is still ranked as the best cryptocurrencies for the others to follow. It also has the highest market capitalization and this is part of the reasons why no other coin can overtake Bitcoin.
Being the leading cryptocurrency, Bitcoin can be found in almost all exchanges. More than 90 PERCENT Exchanges have the Bitcoin cryptocurrency that can either be traded or kept in our wallets. Some of the exchanges in which we can find the Bitcoin Cryptocurrency are as follows; Binance, Huobi pro, KuCoin, Poloniex etc.
Why are you optimistic about this coin today, and how long do you think it can rise?
For me I am very optimistic about this token for obvious reasons. The Bitcoin cryptocurrency is fully decentralized which is very relevant for its development. Bitcoin has a very high market cap which shows that the price is also very likely to rise. This coin also has a relatively low circulating supply which indicates that the coin has a high demand which will in turn go on to ensure that the price will rise in the near future.
Another reason I am very optimistic about this coin is that this coins remains one of the most popular cryptocurrencies and due to this reason many investors pump their money into this coin. This show that as much investment is made into this coin, the price will keep rising and it makes the Bitcoin a great source of investment. The altcoins in the market are also heavily reliant on the movement of Bitcoin. Hence most people invest in Bitcoin to make sure it's influence reach the other Altcoins.
Now let's look at the statistics of Bitcoin on CoinMarketCap.
CoinMarketCap
CoinMarketCap
looking at the screenshots above, it is clear that bitcoin has a market capitalization of $903,926,168,025.09. The coin is also ranked number (#1) among all cryptocurrencies.
We can also see that the Bitcoin has a circulating supply of 18,996,143 BTC. On the 10th of November 2021 was the date Bitcoin made it's all time high. Bitcoin made a highest rise of $68,789.63.
Analyzing the Token
In this section I decided to use the candlesticks to do my analysis. This is because the candlesticks are very clear to read and they also reduce a lot of noise in the chart. I decided to use three different indicators in this chart analysis. These indicators are the EMA, Parabolic SAR indicator and the RSI indicator.
Screenshot from: Tradingview
As we can see in the chart above, I marked the support and resistance levels at their respective positions. We could see that the price bounced of both the support and resistance levels on several occasions. So this time around the price kept making an uptrend after bouncing of the support level. I then went on to add the EMA indicator and we could see that at this stage the EMA was serving as a dynamic support to the price. The EMA Indicator below the price is also an indication that there was going to be a bullish trend.
Screenshot from: Tradingview
I then went on to add the Parabolic SAR indicator as a confirmation criteria. We could see from the chart above that the dots on the parabolic Sar indicator were forming strongly below the price. This is a signal of a bullish trend and further goes on to confirm the first signal of the EMA indicator and the support and resistance levels.
Screenshot from: Tradingview
Then finally I added the RSI indicator to confirm my entry point. We can see that the RSI indicator was moving towards the 30 level. This goes to confirm the entry point and then I went on to place my buy order.
Then I went to the Huobi pro exchange to place my trade. The details of the trade can be seen in the screenshot below.
Screenshot from: Huobi pro
Your plan to hold it for a long time or when to sell?
For me personally I think I will be holding this token in my wallet for some time in an attempt to make some profit from it. As we all know Bitcoin has a very huge project and this shows that the price will continue rising. The technical analysis also means that the price of Bitcoin will keep rising so I don't intend to sell this coin anytime soon.
I will also engage in scalp trading when I identify any opportunities in the market. So this will make me make some profit from the short term trade. This will ensure that I make profit from both the token kept in my wallet as well as also making profit from the scalp or short term trade I carry out.
Do you recommend everyone to buy? and the reasons for recommending or not recommending.
The Bitcoin project is highly recommended to everybody because of the reliability of this project. As we discussed above Bitcoin has a high market cap as well as a low circulating supply which shows that the coin will eventually rise. The low circulating supply means there is high demand in the market which is a signal that the Bitcoin price is moving in the right direction.
Due to these reasons, I will recommend that many people should invest in Bitcoin and they are very likely to make some profit. But those interested in investing in this coin should look for the right entry point before entering the market.
I will also advise that those who are interested in keeping this token should do their own research on the Bitcoin token before investing. As we all know, bitcoin is the commonest token so it would not take a lot of stress to make this research. Interested people should carry out both technical and fundamental analysis before making any investments.
Anything other users want to share about the token/project.
Interested people can visit this site to access more information the Bitcoin token. They can also carry out activities such as testing on this same site.
Bitcoin also has a Whitepapper which can be seen in the link provided.
Cc:
@fredquantum
@kouba01