Introduction:

We already know cryptocurrency trading as the act of meditating and reflecting on the price movements of cryptocurrency using a contract for differences (CFD) trading account or using an exchange platform.

In this lecture our professor explained one of the methods through which a trader can profit from the trading market

TECHNICAL DETAILS ON REVERSE STRATEGY

In cryptocurrency we can see reverse strategy as a form of strategy trading whereby the trader places a trade against the current trend in the market. In reverse trading strategy if the representing market is bearish (downward direction), the trader would buy in the downtrend drive and if it is bullish (upward direction) the trader would sell in the uptrend motion.

How does the reverse strategy work?

The Reverse strategy is effective in a trading market where the cryptocurrency coin has gone longer bearish/bullish in a day. We look at the chart and candle formation to study the movement of a specific coin in the market to note if it is moving in a longer bullish or bearish direction. On seeing long bearish, buying at that point is possible for us to encounter the coin going more bearish.

In this scenario where a coin is moving longer bullish or bearish, it is advisable to leave the market and wait 24 hours in order to implement the reverse strategy. It is very necessary to completely avoid trading during this 24 hour period and put in some effort into preparing for the reverse strategy.

On close observation of the market price movements, when you discover a particular coin is in a longer bearish or bullish position, and the price shift is greater by 20% or more by the end of the day, traders close in their profits causing price to fall back. Opposing traders enter the market as a result of this to pull the direction of the market towards their favor.

Factors to consider when implementing the reversal strategy:

1. opening price

2. High Point

3. Low Point

4. Close Point (which is the most important)

When entering a persistent bearish market, at the end of the required of 24 hours, if the opening price is very close to the previous closing price, the trader should take that as an opportunity to place a buy instruction. The trader should use the immediate next high point as his profit level and the immediate next low point as his stop loss. Take for instance, if a reversal trend goes very high above the previous high point, there is an opportunity to take profit from a selling point based on the previous high points

Showing Reverse Strategy on BTC/USDT pairs

I observed the BTC/USDT pair on my CoinGecko chart pattern on my personal computer to note the bullish and bearish reversal. See image below:

BTC/USDT Pair- Bullish and Bearish Reversals

REVIEW OF COINGECKO

As a crypto trader, the importance of market research and useful tools cannot be overemphasized. This information gives the trader the ability to critically analyze and decide how he or she would like to conduct the trade. The most used form of research in crypto is technical and fundamental research. To have access to these research information, the trader needs to have a reliable information source that provides all of these. This is where CoinGecko comes in, it is one of the finest platforms to engage in all these activities.

WHAT IS COINGECKO

CoinGecko was launched in 2014 and can be seen as a platform that provides an all round market overview of the crypto space. It can be found online at CoinGecko.com, it displays the pinnacle cryptocurrencies by trading volume, circulating supply, price and other pertinent metrics. It is one of the original and biggest data aggregators in the crypto industry in that it draws near to tracking tokens and cryptocurrency exchanges. It currently tracks more than 4700 coins and more than 300 exchanges. It's founders TM Lee and Bobby Ong sought to discover more transparent ways to track cryptocurrencies. Its Headquarters are based in Kuala Lumpur, Malaysia . This site makes it easy for users to get basic information about cryptocurrencies.

HOW COINGECKO CAN BE HELPFUL IN A CRYPTO MARKET

CoinGecko proves very useful in obtaining real-time cryptocurrency price info. On this platform the cryptocurrencies are ordered and labeled in a way that makes it user friendly. This CoinGecko provides the accurate details of thousands of currencies. The details it provides are the list of exchanges, the price chart and the market capitalization of the coin.

An overview of what CoinGecko looks like:

Screenshot taken from CoinGecko website

In the above image, you can see the general features of the platform which includes:
The home page (which has already been shown above)

The USD (currency)

This displays the listed cryptocurrencies, the suggested currencies, commodity and fiat currencies

The filter option:

This provides the users with a range of categories through which he/she can sort through the coin he/she is interested in

Portfolio:

The portfolio option reminds the visiting user to either log in or create an account

The explore all coins option:

On CoinGecko, this gives the user the ability to see every single detail on different coins instantaneously.

Listed below are some of the help CoinGecko provides:

Unlike other platforms like coinmarketcap and coincodex, CoinGecko prides itself with extra customization options:

1. One of many is that you can instantaneously analyze the all-time highs of many cryptocurrencies.

2. It has a ‘developer’ alternative where you can view each cryptocurrency based on its current development activity.

3. It is possible to see the metrics for each coin’s social status (Telegram, Facebook and Reddit and other platforms)
   

   

4. According to the metrics of a coin, each is accorded a Developer Gecko score called Trust score. This aids the trader to know what coin to invest in.

Based on these reasons and more, many people prefer CoinGecko because of the numerous help it provides in the crypto market.

CoinGecko Features

The following are the key features of CoinGecko:

Gecko Scores: It assigns each coin a total CoinGecko score based on its developer and social metrics.

Opacity in its methodology: Publishing of extra information on its methodology is done more on CoinGecko than any other coin ranking website. They are fully transparent about the enlisting of coins and how exchange rankings are calculated.

Availabilty of different languages: The platform is available in English, German, Spanish, French, Italian, Polish, Romanian, Hungarian, Dutch, Portuguese, Swedish, Vietnamese, Turkish, Russian, Korean, Japanese, Chinese, Arabic, Thai, Malay, and Indonesian. This makes it possible for individuals of different nationalities to easily navigate through

Technical Analysis: Technical Analysis is automatically calculated for each coin. This analysis is provided through TradingView.

Exchange: CoinGecko ranks exchanges by few numbers of metrics, which includes 24-hour trading volume, web visits, the circulation of coins, and the number of trading pairs. Each exchange also has a CoinGecko Trust Score.
<>center

Ranking of Coin by Blockchain metrics: CoinGecko provides you the options of comparing coins by certain blockchain metrics. You can easily view the consensus method used by each of the top 100 cryptocurrencies, such as the number of nodes, transactions per second, blocks, circulating supply, total supply, and percentage circulated. Not very much coin comparison websites provide at-a-single glance information like this.

Viewing the all-time high: Viewing the all-time highs of major cryptocurrencies at a glance has never been made easier. This single glance includes the drop in the value of that cryptocurrency since the all-time high and the date on which the all-time high was reached. You can easily compare the top 100 cryptocurrencies based on their all-time high.

Search through Coins by Platform: You can sieve coins based on the platform on which they’re built – like Stellar, Waves, or VeChain.

There are a host of other cool unique features of CoinGecko. I highly recommend you visit the website to experience for yourself.

Weekly Price Forecast for BTC

I have decided to use BTC/USDT pair for this forecast study, reason being that in the past weeks, it has encountered a somewhat confusing change in trend, favouring the downtrend more.

What to know about BTC

Bitcoin is a decentralized digital currency that is based mainly on cryptography. It’s decentralized nature permits it to function on a peer-to-peer network in which users can send assets to each other directly. It was first launched in January 2009.
As demand surges, so does the worth of Bitcoin. There is actually a limited amount of bitcoin in supply, the value therefore varies, based on request or lack of request.
Bitcoin’s current price is about $37,000. It’s circulating supply is 19 million BTC coins and its maximun supply is 21 million. The current most active market trading it is Binance.

Why I have chosen BTC

BTC can be considered to be the first cryptocurrency produced, and also the most valuable. I believe it has played a major role in the formation of the cryptocurrency world.

Technical analysis - BTC/USDT Pair

In the coming week, i predict that btc will take some time tryng to retrace to a $42,000 price, this is because the reversal in price the past week has been to drastic, and i feel that it is BTC's turn to get a bullish trend up.

Conclusion:

Conclusively, a trader can use the reverse strategy to confidently profit from a longer bullish/bearish market. This is a nice and very effective technique. On the other hand CoinGecko is a unique website that provides every basic, reliable and necessary information on cryptocurrencies. It helps users to keenly observe various crypto assets and provides them with tools that will aid their learning of the crypto world.