Introducing Kalkine’s ‘Cryptocurrency Report’

Kalkine presents the ‘Cryptocurrency Report’ to invest in the blockchain technology space. The abatement of bond yields across the globe and proliferation of blockchain technology in varied industries ushered market players to seek a highly risky and high return generating cryptocurrency asset class.

Growing Significance

Cryptocurrencies use blockchain technology to record every transaction and are termed as digital currencies. There are 9,000+ crypto coins available in the market. Bitcoin is considered as the gateway asset into crypto that boasts the largest market capitalization reaching ~USD 1.09 trillion (Source: Trading View as on 25 November 2021), the highest among all the cryptocurrencies, followed by Ethereum, Tether, Binance Coin, and Cardano.

Blockchain technology assumed greater significance for tracking and tracing products, payments, and remittances, identity management, benefiting a spectrum of industries from healthcare, government, and public services to manufacturing, finance, logistics, and retailing.

Kalkine’s ‘Cryptocurrency Report’ provides a new technical analysis-driven research report on cryptocurrencies traded on global exchanges. This product is designed for investors with sufficient risk appetite and financial flexibility, who typically seek opportunities for a short time. This report is released after considering the volatile trading dynamics and market timings on a weekly basis.

Steller Show by the Cryptocurrency Index

With a growing frenzy among investors for cryptocurrencies, S&P has launched three benchmarking indices to gauge the performance of stocks with exposure in bitcoin and cryptocurrency assets. These are - S&P Bitcoin Index, S&P Ethereum Index, and S&P Cryptocurrency Mega Cap Index.

With growing acceptance of blockchain technology and regulatory supervision, the S&P Crypto Currency Broad Market Index delivered gains of 20.5% since mid-September (till November 18, 2021) as compared to S&P 500 Index returns of 5.3% (Source: REFINITIV).

Given this backdrop, Kalkine’s Crypto Currency Report Offers Below Key Features:

Extensive Technical Research:  This report is purely based on a thorough technical analysis using parameters such as price action, trends, support, resistance, candlestick patterns, volumes, relative strength index (RSI), simple moving averages (SMA), etc.

Swing Trading Opportunities: By virtue of short-term gains in cryptocurrency, swing trading provides an edge over fundamental analysis as investors may be able to generate desired returns in a short time.

Investing Edge from Long or Short Positions: Cryptocurrencies are traded in a spot as well as future platforms, therefore they offer a hedging tool for investors which allows them to minimize risk by entering the trade in either or both directions i.e., as a short position or as a long position.

Pre-defined Risk-Reward Scenario: Risk-Reward ratio represents the prospective reward an investor may achieve for the risks undertaken. Investors can weigh their decisions in the light of an appropriate entry-level, target prices, and a pre-defined stop loss.

Key Risks Associated

Despite immense growth opportunities offered by Cryptocurrencies, the risk levels associated with trading in this asset class are also significant. For instance, high price volatility, new and unregulated spot markets, market adoption in the retail or commercial marketplace, unclear government regulation, and irrevocable digital asset transactions are some of the key risks.

Few Crypto Currencies that Witnessed a Sharp Rally in Short Time

Bitcoin (BTC) spot price rallied ~14.90% in one week after giving the breakout of the falling trendline resistance at USD 49500 level on October 05, 2021. The movement was also supported by RSI (14-Period), along with the 21-period and 50-period SMA trend. Since the breakout, prices are sustaining above the downward sloping trend line and made a new all-time high of USD 68999.99 on November 10, 2021 and gained almost 39.39%.  

Data Source: REFINITIV, Analysis by Kalkine Group

Ethereum (ETH) generated a return of ~14.77% after reflecting a breakout of the downward sloping trendline resistance level at USD 3890.50 on October 20, 2021. The price movement was also supported by technical indicators such as RSI (14-Period), 21-period SMA, and 21-period SMA. After breakout, the prices are trading above the falling trend line and touched the fresh all-time high of USD 4867.60 as on November 10, 2021, up by 25.11% (Source: REFINITIV).

The returns generated by above cryptocurrency (Bitcoin and Ethereum) were significantly higher than the returns yielded by S&P Cryptocurrency Broad Digital Market (BDM) Index over the same time.

To summarize, Kalkine’s ‘Cryptocurrency Report’ aims to provide insights which are easy to comprehend, covering diverse cryptocurrencies. It must be noted that insights provided under this product are solely based on technical parameters, and fundamental performance has not been considered.

Note: Trading decisions require a thorough analysis by investors. Technical reports in general chart out metrics that may be assessed by investors before any Cryptocurrency evaluation. The above are illustrative analytical factors used for identifying pros and cons on select Cryptocurrencies; and other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance