BTC 4-year cycle, ETH and BNB rising. Cryptocurrencies fundamental analysis guideline, Bytedex, GMR finance and Axie Infinity are covered in this article.
As BTC, ETH and BNB are rising a famous theory is being questionned by the market and by investors : The 4-years BTC cycle.This theory states that, since BTC halves occur every 4 years, price movement can be explained in 4 years cycles.
Crypto-investors are currently facing 2 possible scenarios regarding the current 2021 bullrun :
-The logarithmic upper band has not been reached yet, meaning cryptocurrencies still have room for growth, reaching possibly new ATH.
-The upperband has been reached and we are now facing a downtrend for some time.
For our readers i want to share a tip today, maybe obvious but worth to be re-read ;
Mathematics are tools to help you make a decision, not a binary rule "buy or sell".
Don't get lost in too sophisticated mathematical theory, cryptocurrencies are a mind game more than everything else.
Stay flexible and open-minded, pay attention to the news, and react accordingly.
We are convinced here that the bullrun is over for at least a few months. But we could be wrong.
We can state that because of our fundamental analysis on Bitcoin that we will share in another article if you are interested.
Fundamental Analysis : Basic Guideline
While reading my previous posts and newsletter, i noticed i spoke about fundamental analysis, but never made a guide of how to get started, that is what i will do now.
First, i want to explain the difference between technical and fundamental analysis :
-Technical analysis consists in seeking short-term opportunities by analyzing statistical trends from price and volume...
-Fundamental analysis consists in trying to find the "true" value of an asset, i can tell you right away that finding the truc value of a cryptocurrency is not an easy feat.
Fundamental analysis will give you hints on the long-term trend, not on the short-term price movement !
We need to find informations that give cryptocurrencies an intrinsic value, can't be gamed, and give us clues about the future price movement :
There is plenty of datas for someone who knows where to look, i will provide some here (not exhaustive at all) :
CoinmarketCap BTC onchain analysis provide essential informations on the bitcoin's blockchain.
Those datas can be used to draw a conclusion on BTC's blockchain current state, which is what then gives us an idea of whether it is over-valued or under-valued.
Hashrate : is an indicator of the health of the network. You all probably know that the network is really what gives "life" to a cryptocurrency, so using the hashrate gives us a fundamental hint on the "lifeline" of the network backing the cryptocurrency.
News can be considered fundamental analysis because it shows the current interest of the world in cryptocurrencies, it helps giving a bit of reality to this asset class.
After reviewing every informations provided here, you can always search for more, or if you already made your mind on the long-term trend, you can try a bit of technical analysis to time your entry, and maximize your profit/risk ratio.
Technical Market Analysis : Relative Strength Index
As mentionned in the introduction, the price of the 3 main cryptocurrencies is rising again.
However, according to me, this increase in price is lacking momentum, and i will show you what makes me say that.
The indicator i will introducte to explain my reasoning is the Relative Strength Index, RSI, which is a momentum indicator.
It is mathematically designed to be between 70 and 30 most of the time, which indicates overbuy or oversell zones. However, you have to learn to use it between 70 and 30 because that is going to be majority of the time.
As you can see on the chart, the RSI is stuck in a low/neutral position, showing the lack of bullish momentum, it bounced twice on 60 and is now making lower highs and lower lows, indicating possibly a new down-trend.
To combine this analysis of the RSI, we can see that volumes are quite low, with no huge activity peak.
The price is still ranging between roughly 30.000$ and 40.000$, being the support and resistance respectively.
For the near future, we at coinhunt, think that BTC will test his support level one more time during the week, going down to 30.000$, before breaking the range upward or downward.
This is not a financial advice.
This week, we want to bring attention on 3 interesting projects that are listed on coinhunt and deserves to be explained a little more in depth :
-Bytedex's project is to become a new CDEX (centralized decentralized exchange or hybrid exchange). The developers have numerous utilities planned for their token, if everything is achieved as the team intends to, the token will be backed by good fundamentals.
The short-term and long term remunerations are the same : achieved through staking $BYTEDEX on their platform.
As written above, the team wants to develop a lot of features for their exchange, fueled by the rising in $BYTEDEX's price.
To generate remuneration for investors, GMR finance uses 3 smart contract functions :
-Liquidity Pool Acquisitions
This will encourage token acquisition and team-remuneration to keep them going through their roadmap :
You can see that even if the coin was launched long ago, the team still has plenty of ideas to improve the fundamentals of their token.
We think it is a project that can still interest some of our customers as it is gaming-oriented and has already succeeded in bringing the gaming community around this coin.
-Axie Inifnity's is a very interesting coin that we want to share to our readers today.
This game is Pokemon-inspired and remunerate players who contribute to the ecosystem.
From their whitepaper you can see everything on the project, they are actually working on the staking system, so that players will earn interests for holding the tokens they use to play the game.
As it is currently the most exhaustive and complex blockchain-based game, we wanted to share this opportunity to our readers.