Bitcoin Halving and November
The month of October closed beautifully for Bitcoin, where the kingpin Cryptocurrency saw a 40% increase in price.
Some more good news, this uptrend doesn’t seem to be slowing down anytime soon!
To back up why we say this we will take a quick look into Bitcoin’s price action throughout its history.
Why? To answer that, you’d need to know a thing about Bitcoin Halvings:
Bitcoin Halvings are events in Bitcoin’s lifetime where the reward given to BTC miners are cut in half. Essentially, this event creates a shock in BTC’s supply and demand which heavily affects price action.
We are about to enter November the year after the 3rd Bitcoin Halving. #pumpvember incoming?
the year after the first halving event (2012), BTC saw a crazy 470% increase in price!
the year after the second halving event (2016), although not as massive as 2013, BTC still pulled in a decent 54%.
The 3rd Bitcoin halving happened in May of 2020, will the pattern repeat and give us a huge run up?
In conclusion: Hold onto your hats and stay excited for November!
Technical Analysis: 2 Year MA Multiplier
This is a really good tool if you are currently position trading cryptos, or if you are using market cycle analysis as a factor in your trade plans.
Similar to any other asset, Bitcoin moves through market cycles. This would be Bull markets and Bear markets. These periods are created when people are over-excited which causes the price to over-extend, and periods where they are overly pessimistic which causes the prices to over-contract. Identifying and understanding these periods can be beneficial not only for investors, but to traders as well.
The 2-Year Moving Average Multiplier is an effective way to highlight those periods.
The 2-Year MA Multiplier is a tool to identify Bitcoin’s market cycles which is very useful if you are using market cycles analysis to plan which positions to take when trading (going long more often during bull markets or opening shorts more open during bear markets).
This indicator uses a moving average (MA) line, the 2yr Moving Average, and also a multiplication of that moving average line – 2yr MA x 5.
Note: the x5 multiplication is of the price values of the 2 year moving average, not of its time period.
This is also only one of many indicators available for free that attempts to identify Bitcoin market cycles. By pairing this indicator with multiple indicators, such as the Stock-To-Flow or the Fear and Greed Index, then you can fine tune your analysis.
How to read this Tool
For position trading Bitcoin:
Buying Bitcoin when price drops below the 2yr MA (green line) has historically generated outsized returns.
Selling Bitcoin when price goes above the 2yr MA x 5 (red line) has been historically effective for taking profit.
For Market cycle Analysis:
When the price increases from being below the 2 yr MA (green line) we are in a Bull market.
When the price drops from being above the 2yr MA x 5 (red line) we are in a Bear market.
Cryptocurrency Squid Game
SQUID – the cryptocurrency inspired by the hit Netflix show Squid Game. In case you haven’t heard of Squid Game, it’s currently the most popular Netflix series, so far already racking in 111 million viewers.
You might be thinking: “wow, movies are now being turned into cryptos”. Well, that’s both true and false in this case.
True in the sense that this crypto called SQUID was based on the hit Netflix series…
False in the sense that the show had nothing to do with it. For all we know this was made by some guy in his mom’s basement – which in hindsight, is highly probable.
But did that stop people from buying into this coin? Of course not. As long as it’s popular, people will ape into things they do not fully understand.
And this coin, true to its name, had only one winner.
After hitting a high of $2,861 and a total market cap of roughly around $3.3 million, the coin then fell to zero. That’s right, straight to ZERO.
In case you still find this hard to believe, check it out being rug pulled – LIVE! (Warning, there is use of Profane language)
Our algorithms generated over 89 signals in 31 days across different strategies.
We saw a massive 79% of them hitting targets 1,2,3 and 4! That’s 70 out of 89 signals offering up at least some profit potential! Only 21% (19) of our signals generated and vetted by the experts went directly to stop-loss.
When do we publish signals?
Our Favourite Trade
Our favorite trade this month is MANAUSDT started on October 28, 2021, ended on October 30, 2021.
Look at the chart
MANAUSDT has managed 98.59% peak gains. Thanks to the profitable trade generated by the ProfitFarmers Algorithms. We got in just before the MANA price went crazy. How crazy? Well, it pumped 600% in 3 days.
All targets were cleared in just 2 days. The 4th target was PENETRATED before the signal closed. We didn’t exactly catch the top of this pump, but almost 100% gains is good in any situation!
Coin of the month
What is Shiba Inu?
To put it as bluntly as possible, the self-proclaimed “Dogecoin killer” has no use case. Even its developers, who hide behind a pseudonym “Ryoshi”, admit the fact.
According to The SHIBA INU WoofPaper (Ha!), there are three reasons why their team created SHIB:
“We started from zero, with zero.”
“The brilliant minds behind Shib had never collaborated before.”
“We love Shiba Inu Dogs.”
But talking about a project’s fundamentals is forbidden language in the cryptoworld – as long as it goes up, it’s good enough.
And boy did SHIB go up – about 1200% during October!
ProfitFarmers jumped on the hype train and had fun trading SHIB, as our results show!
Overall Target Spread and Profit Per Target
We broke down the winners to discover which targets were being hit. This is what we saw:
Average Gain Per Target
34.83 % of trading signals generated hit Target 1 and achieved an average peak gain of +12%
25.84% of trading signals generated hit Target 2 and achieved an average peak gain of +18%!
6.74% of trading signals generated hit Target 3 and achieved an average peak gain of +47%!
11.24% of trading signals generated hit Target 4 and achieved an average peak gain of +58%!
Only 21% of our signals hit stop loss and had an average loss of 10%.
Based on the chart above, the overall average depth is ranging from 40-43%. On average the price came down to the middle of the entry zone for both Spot and Futures signals. Spot dip a little deeper than Futures. The ideal way to play last month is to set your entry prices to around 40-44%* from the top of the buy zone (aggressive strategy) if you were trading SPOT or Around 39-42%* if you were trading FUTURES.
If you are unsure of how to get the best entry, we highly suggest using our Laddering Feature!
*Keep in mind that this is not always indicative of future results.
Top 10 Trades in October
MANAUSDT comes first with a peak gain of 98.59% in just a week, followed by ENJUSDT which reached an impressive peak gain of 80.12%!
October performed extremely well for the whole cryptocurrency market, where we saw the previous Total Market cap ATH of $2.5 Trillion set a few months ago broken. We are now looking forward to November, known in the crypto scene as “Pumpvember.” Let’s get it!
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See you all next time!