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On-chain analysis; BTC, ETH, XRP, ADA, COMP ideas

29 Jun, 2021 Martin Petkov
On-chain analysis

Hello and welcome, everyone! It's Martin here at CryptoGains. Today, we're doing some on-chain analysis of the crypto world. Beginning with the Bitcoin Net Realised Profit/Loss. What we can see from this chart is that beyond the big crash that we witnessed on 19 May, there was a second capitulation event later in June, which totaled even more losses. $3.45B in realised losses, which, as you can see, is bigger than the May sell-off and way, way bigger, more than two and a half times, than the March 2020 sell-off.

In addition to that, what we can see is that the dynamics in the short- and long-term spent output profit ratio indicate uncertainty in long-term holders and spending coins at a significant loss for short-term holders. In addition to that, it appears that institutional demand has been drying out, decreasing. Even though the Bitcoin Grayscale Premium has recovered somewhat from the low of -21% that it reached, it's still in negative territory, suggesting that institutional demand is weak.

Finally, the balance on Coinbase, which has been steadily decreasing throughout the bull run, driven primarily by institutional demand, has now flattened from mid-May through June, once again suggesting that institutional demand is weak, insubstantial to drive more crypto gains. Let's move to the charts and see how we can actually trade some of the assets we discussed and some other assets, as well.

Bitcoin, the pivot point and a very critical level remain at $35,000. Ideally, we want to break above that level to initiate long positions, with targets at $36,150 and then $37,500. Conversely, below $35,000, selling Bitcoin, with targets at $34,250 and $33,250, which are the nearest support areas on the downside, on the short side.

Let's now move to Ethereum. Ethereum has made more gains than Bitcoin since yesterday. But as we can see, the very critical level that coincides with some support and currently is acting as resistance is the $2140 mark. So even though Ethereum comes with a buy signal at the time of filming, ideally, I would like to see a break above $2140 before initiating long positions in Ethereum, with targets at $2250 and $2370. Conversely, below $2140, there is fairly robust support around $2043, which is a good target for a short position and then lower down at $1965.

Now, we're going to move to Ripple. Ripple also comes with a buy signal at the time of filming. As you can see, however, the critical pivot point is at $0.66. So above that level, a good opportunity to buy Ripple, with targets at the nearest resistance, which is $0.69 and then higher up at $0.74. Let me just move that a little bit so that you can see $0.74 for the mid-term target. Conversely, below $0.66, selling Ripple, with targets at $0.63 and $0.59, which happen to be reasonable targets on the short side. Actually, I'm even going to adjust that a little bit to $0.60. More conservative but more likely for you to close the trade at a profit if you initiate a short position in Ripple.

Now let's take a look at Cardano. Cardano is trying time and time again to break above $1.35. So, this is my pivot point. I want to break above $1.35 to initiate long positions in Cardano, with targets at $1.394 and $1.458. Conversely, below $1.35,we can see that we're trading in a channel, so you can sell Cardano, with a target at $1.31 and then lower down at $1.28 on the short side.

And finally, let's take a look at Сompound. Compound is performing exceptionally strong in the last 24 hours. As you can see, rallying from about $220 to above $300. The catalyst for that is that there is some exciting news around the development of the platform. So, above $308, which is a long-term resistance, I've seen good opportunities to buy Compound, with targets at $346 and $380. This is a bit more of a longer-term — mid- to long-term — trade. It may take a couple of days to reach these targets. Conversely, below $308, selling Compound at targets $285 and $265, which are the nearest critical levels on the short side.

Thanks for joining me today. Keep learning with the video education section in the CryptoGains Market Insights subsection. And remember to join the Crypto Signals Made Easy channel for insightful articles and trading ideas. Thanks for joining me today. Trade wisely, and I'll see you soon.

Bye-bye.

 

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