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Crypto sentiment analysis; BTC, ETH, XRP, ADA, THETA ideas

14 Jun, 2021 Martin Petkov
Crypto sentiment analysis

Hello and welcome, everyone. It's Martin here with CryptoGains. We're beginning this week with sentiment analysis of the crypto market, and first, we're looking at the social volume compared with the Bitcoin price. And we can see that, after a very steep drop, after the significant correction in the Bitcoin price. We now have a bit of a recovery in terms of the social volume, which means that interest in Bitcoin is picking up once again.

Also, what is interesting to note is that during the middle of the past week, the Bitcoin Weighted Social Sentiment actually turned positive for a while before returning to negative territory once again. But, if we look at the recent history, actually negative sentiment typically is a good opportunity to buy Bitcoin over the long term. It's also interesting to note that the picture is very similar for all other major altcoins. We can see that for Ethereum, Ripple, Cardano and Polkadot, the weighted social sentiment also is just a little bit below zero, slightly negative.

What is also interesting to observe, however, is that the Daily Active Deposits for Ethereum are dropping, which is indicating a stagnation and lowering in the overall activity on the network. And also, what's quite interesting to observe, however, which is a bit more positive, is that the Supply on Exchanges of Bitcoin is declining, which suggests that there is less Bitcoin on exchanges. So, people have moved some of it back to storage in cold wallets. So, the selling pressure against Bitcoin is decreasing, so prices are not likely to continue falling, at least in the short- to near-term.

Finally, however, the Mean Dollar Invested Age, which is a good indicator of what Bitcoin prices are going to do in the near future. At the moment, it's reached the bottom, and it is beginning to recover. However, this is quite unfortunate because, if we compare it to some of the cycles from the recent past, this tended to coincide with Bitcoin tops, and periods of stagnation followed afterwards. So, what we can infer from this chart is that, probably, we have reached a temporary top in Bitcoin, and, over the next few months, or maybe years, we could see a bit of stagnation as market activity diminishes.

Also, we have some very interesting developments from today. And one of the reasons why Bitcoin is recovering strongly and attempting to reclaim $40,000 is that Elon Musk tweeted once again that Tesla will consider accepting Bitcoin as long as Bitcoin mining reaches over 50% clean energy usage. And, in addition to that, one of the leading analysts is discussing why he remains very bullish on Bitcoin, Ethereum and Cardano, three assets that we're just going to discuss in a minute and see why they present good trading opportunities.

Beginning with Bitcoin, on the one-hour chart, we can see that we had very strong resistance at $39,280, which was broken, so I'm using that level to initiate long positions with the initial target at $40,500 and then $42,000. Conversely, however, if we break below $39,280, I see better opportunities to sell Bitcoin, with targets at $38,000 and $36,700.

Now let's move to Ethereum. The pivot point for Ethereum is $2480. And, above that level, I see a good opportunity to buy Ethereum. We can see that the first target is reasonably going to be placed at $2540, which is also a bit of a resistance and then longer-term at $2620. Conversely, however, we can see that if we fail to maintain that level and we break below $2480, we could see more declines. Of course, the first target could be around $2430, but more likely, all the way down to $2390 and then further down to $2330.

Now let's move to Ripple. For day trading Ripple, I like $0.87 as a pivot point to initiate long positions, with the first target at $0.885, which is the nearest resistance area. And then further up, $0.92 remains the longer-term resistance and a good target for mid-term long positions. Conversely, however, below $0.87, we could see declines first taking us down to $0.85, $0.843 and a mid-term target at $0.81.

And, now, we're discussing Cardano, so let's take a look at the chart and see how we can trade these insights. The pivot point for day trading Cardano I see at $1.536. Above that level, buying Cardano, we can see very robust resistance just over $1.58. So, that will be a good Take Profit target for long positions and then, mid-term, the Take Profit target for long positions at $1.623. Conversely, below $1.536, selling Cardano, with targets at $1.496 and $1.402.

And, finally, let's take a look at Theta. Theta is one of the stronger performers of the last 24 hours and broke above substantial resistance at $9.12, which gives us a good opportunity to initiate long positions, with targets at $9.40 and $9.92. But below $9.12, it may be wiser to sell Theta, with shorts targeting $8.90 and $8.60.

This is all for today. Thanks for joining me. Have a good week trading. Trade wisely. Remember to join the Crypto Signals Made Easy channel to keep learning, and I'll see you soon.


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