Enjoy our weekly dose of the market summary below!

: Following early last week’s sell-off, the broader equity market rebounded as Friday's weak job report revived market sentiment. Cryptocurrency followed suit, with Bitcoin climbing back above $60K last Friday.

Enjoy our weekly take on the market summary below!

Friday’s Weak U.S. Employment Data Revives Market Sentiment

Wall Street traders who attempted to anticipate the Federal Reserve's moves can breathe a sigh of relief as the week comes to a close. After withdrawing funds from credit, cryptocurrency and stocks, due to concerns about stubborn inflation, new data emerged that arguably supports the central bank's economic strategy. Consequently, the bears experienced a setback on Friday as Treasuries and the S&P 500 recorded their first simultaneous weekly gain in a month, primarily driven by softer U.S. employment data. 

Another Week of Conflicting Labor Market Reports Arrives

Recent financial markets feature a perplexing landscape of conflicting economic reports, leaving profit-seeking participants repeatedly soaked. On Tuesday, a comprehensive measure of U.S. labor costs surged to its highest level in a year, causing yields on two-year Treasuries to exceed 5%. However, three days later, a 

 from the Labor Department revealed the smallest wage increase since 2021, prompting yields to retreat. Recent reports indicate a surge in retail sales alongside a slowdown in gross domestic product. Industrial production is on the rise, while manufacturing activity is easing. Jobless claims remain steady, but hiring has slightly declined.

In the coming week, several federal officials will give further clarification on the U.S. Fed’s next policy moves.

Bitcoin Spot ETF inflows bucked the bearish trend that had lasted for more than a week, supporting the largest cryptocurrency as it rose back to $60K.

AR Jumps 25.1% After HackMD Integrates Arweave for Permanent Blockchain Document Storage 

, launched in June 2018, is a decentralized platform for permanent data storage, leveraging its native AR cryptocurrency to incentivize users and ensure data permanence. It offers easy web access and is developing moderation tools. Moreover, its key partnership with 

 highlights Arweave’s commitment to secure data preservation. 

 with Arweave in March 2023, enabling users to permanently store documents on the blockchain. This feature ensures decentralized, immutable storage for important documents, such as white papers. Users can export and import documents between HackMD and Arweave using the 

 wallet and browser extension, enhancing data security and permanence. This integration underscores HackMD's commitment to leveraging 

 technologies for secure and efficient document management. 

ZETA Jumps 19.0% After ZetaChain Announces New Growth Program

 (ZETA), launched in February 2024, is a Layer 1 blockchain and interoperability platform enabling 

 to operate across multiple blockchains, including those without native 

 capabilities, such as Bitcoin and Dogecoin. ZetaChain has launched a new program that dedicates 5% of its ZETA token supply to boost DApp development on its platform, with a specific focus on Bitcoin-related projects, which will receive 1% of the allocation. This initiative aims to enhance product and service innovations across blockchain networks, particularly after Bitcoin's recent 

The funding, which will be rolled out over the next 3–4 years, supports advancements in Bitcoin infrastructure, 

 (DeFi), and gaming/social applications. This program is now open for project submissions, emphasizing ZetaChain's omnichain capabilities to improve the blockchain user experience.

ENA Surges by 7.3% After Ethena's Synthetic Dollar Launches on Swell L2 With Rewards and Airdrops in Pre-Launch Phase

 Labs (ENA), founded in 2023, has introduced USDe, a synthetic dollar on Ethereum that offers a decentralized alternative to traditional stablecoins. It features the 

 to manage volatility, and aiming to transform the financial ecosystem by enhancing Ethereum's utility. 

Recently, USDe has become available on Swell L2. By depositing USDe during the pre-launch phase, users can earn Sats, qualify for a Season 2 airdrop upon the L2 launch, receive additional airdrops from projects on Swell L2 and share 1 million EigenLayer points. For more details, visit the 

FRONT Surges by 4.6% After Frontier Wallet Enables Secure Cross-Chain Asset Swaps to Cronos Chain With XY Finance

 (FRONT), founded in 2019, is a multichain DeFi and NFT wallet that supports over 65 blockchains and enables secure trading, staking and asset management through a single interface. It integrates with top wallets via 

, and simplifies the user experience by minimizing the need for multiple extensions and seed phrases. Frontier Wallet now supports cross-chain asset swaps to 

, enabling secure bridging to CRO from over 20 blockchains. 

's community has propelled its platform into a leading Layer 2 network, boasting over $500 million in TVL and significant ecosystem growth. In response to this success, Mode will end its 

 on May 5, 2024, and launch Airdrop 2 with 500 million MODE tokens to further incentivize ecosystem participation. 

The native MODE token, essential for governance and ecosystem growth, will launch on May 7, 2024. The first airdrop saw 5.5% of MODE's total supply allocated, with significant vesting terms for top wallet holders to promote long-term holding. Airdrop 2 aims to continue this momentum by rewarding ongoing user and developer engagement.

 allocations as follows: 64% for OGs, 30% for Trader Points Program participants, 5.5% for early version 1 users and 0.5% for the 

 network. An additional 2% of tokens (20 million) have been added, bringing the total to 12%, to celebrate community milestones. 

, and redistribute penalized allocations. A novel claim bonus incentivizes delayed claims to minimize bot activity and network congestion, with bonuses increasing over a six-hour period and unclaimed bonuses returning to the DAO. The exact claim date will be announced soon, with details available on 

friend.tech Launches V2 and Announces Airdrop

 version 2 of its blockchain-based social platform, with new features and anticipation of a 100% airdrop of its FRIEND token. The company has already taken a snapshot for the airdrop, which may occur as soon as next week when points balances become blockchain-based. friend.tech, which debuted in August 2023 on 

, a Coinbase-incubated Ethereum Layer 2, had initially seen significant activity but later experienced a decline. 

 for managing community treasuries and minting tradable collectibles, a new points system for the airdrop, and custom engagement metrics. Additionally, version 2 allows users to customize their chat spaces. The platform currently has $34.4 million in total value locked, down from its peak of $52 million.

Stay tuned for more institutional insights and crypto updates next week!

Advanced

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Weekly Institutional Insights — Crypto Rebounds Following Friday’s Weak Job Report; This Week’s Outperformer: AR, ZETA

Bybit Discount Buy is a non-principal protected product that allows you to acquire BTC and ETH at prices lower than the market rate at the settlement date.

 lies not just in its potential for high returns, but also in the continuous innovation that shapes its landscape. A key aspect of this dynamic market is the pursuit of strategies that enable traders to maximize their investments, particularly in stable market conditions. In such scenarios, the ability to purchase digital assets at lower prices becomes a significant advantage. This is where Bybit's Discount Buy feature comes into play, offering a unique solution for investors looking to capitalize on market stability. In this article, we’ll explore Discount Buy’s functionality, benefits and suitability for different investor profiles.

 is a non-principal protected product from Bybit designed for low-volatility markets, allowing clients to acquire 

 and ETH at prices lower than the market rate at the settlement date. This feature is particularly beneficial when BTC/ETH 

Discount Buy operates on a unique mechanism whereby users can purchase a specific asset at a predetermined price on the settlement date, which is below the market rate at the time of order placement. This is particularly advantageous when the Settlement Price falls between the Knockout Price and Purchase Price.

Bybit’s Discount Buy is structured to function optimally in specific market scenarios as follows:

There are several advantages to using Discount Buy. Following are three of its key benefits.

Discount Buy offers the unique advantage of acquiring cryptocurrencies at 

 than the current market rate. This is particularly beneficial in 

 or periods of low volatility, where the chances of the Settlement Price falling within the favorable range (between the Knockout and Purchase Prices) are higher.

The product's structured nature, akin to a 

, provides a cap on the price level in the holder’s favor. However, unlike traditional knockout options, a Discount Buy plan won’t expire worthless, as users have the option to buy the desired coin at a price lower than the market price at the time of order placement.

In the Knockout Scenario, where the Settlement Price exceeds the Knockout Price, users not only get their principal back but also earn an additional APR, enhancing the overall profitability of their investment.

While Discount Buy offers several benefits, it also comes with 

. Below are three key risks associated with this investment product.

Despite the Purchase Price potentially being below the market price at the time of order placement, it might still be higher than the Settlement Price. In such scenarios, the settlement continues at the Purchase Price, which could result in a loss for the trader. This highlights the inherent risk that market volatility and price fluctuations may affect the investment outcome.

The non-principal guaranteed nature of Discount Buy means that invested capital is at risk. If the Settlement Price reaches or exceeds the Knockout Price, the trader receives the initial investment plus the Knockout coupon payment. However, if the market moves unfavorably, the principal amount could be at risk. This makes it crucial for investors to assess their risk tolerance before participating.

Suitability for Specific Investor Profiles

Bybit’s Discount Buy is designed for users who are looking to 

 in bear markets, or when market volatility is low. It requires a nuanced understanding of market trends and the ability to predict the movement of the Settlement Price within the specified range. This makes it more suitable for experienced traders, or for those with a higher risk tolerance.

Now that you're familiar with the essentials of Bybit’s Discount Buy, let's delve into a comprehensive guide on how to begin using it. Before proceeding with Discount Buy, ensure you have an active Bybit account. If you haven't set one up yet, 

: Log in to your Bybit account and hover your cursor over the 

tab on the navigation bar at the top of the page. Then, hover over 

 button of the corresponding plan that you’d like to select.

: Input your investment amount and ensure that you acknowledge all the parameters you’ve chosen. Once acknowledged, click on 

: Please ensure that you’re aware of the following: 

, you’ve successfully subscribed to the plan.

If you’d like to view the details of your Discount Buy orders, simply click on 

 in the successful order notification pop-up window.

Alternatively, you can follow the steps below if the pop-up window has disappeared.

 button on the top right corner of the homepage and click on 

Discount Buy is particularly suitable for:

Whether or not to use Discount Buy depends upon individual trading strategies and market understanding. It's an attractive option for those looking to capitalize on lower prices during stable market conditions. However, it requires a good grasp of market trends and 

. Traders should evaluate their investment goals and risk tolerance before deciding to use this feature.

Bybit’s Discount Buy presents an intriguing opportunity for cryptocurrency traders, offering assets at below-market prices under certain conditions. While it has benefits such as cost savings, it also carries risks associated with market volatility. As with any trading tool, it's essential to use Discount Buy judiciously, in accordance with one's particular trading strategy and risk appetite.

Beginner

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Bybit Discount Buy: Unlocking Lower Prices in a Stable Market

There are three potential outcomes that can arise from using Bybit Discount Buy — Knockout, Profitable Purchase or Less Profitable/Break-Even Purchase.

As the cryptocurrency market begins to show signs of a bullish trend, investors are increasingly on the lookout for innovative strategies to maximize their returns. In this dynamic landscape, Bybit's Discount Buy emerges as a noteworthy tool, especially for those who are optimistic about the long-term potential of digital assets. This article delves into the intricacies of Bybit Discount Buy, a novel offering that enables investors to purchase 

 (ETH) at prices potentially lower than the prevailing market rates at the time of settlement. 

Designed for markets with low volatility and tailored to the needs of long-term investors, this non-principal-protected product presents a unique opportunity in the realm of cryptocurrency investments. In this article, we’ll explain how Bybit Discount Buy works, how to use it strategically, and its potential outcomes and benefits.

Bybit Discount Buy is a product designed to let you potentially purchase BTC or ETH at a lower price than the market value on a future settlement date. 

On the settlement date, you’ll either buy the coin at the “purchase price” or receive your principal plus interest in USDT, depending upon the market price on the settlement date, also known as the Settlement Price. Discount Buy is a non-principal-protected product, meaning you may lose your initial investment if the market moves unfavorably.

Bybit Discount Buy operates based on three crucial parameters: Purchase Price, Knockout Price and Knockout APR. The Purchase Price is the price you'll pay for the coin on the settlement date, while the Knockout Price is the threshold triggering a payoff instead of the coin purchase. Finally, the Knockout APR signifies the 

 (APR) added to your principal in the payoff scenario.

Bybit Discount Buy becomes profitable when the Settlement Price (the coin's market price on a future settlement date) falls between the Knockout Price and the Purchase Price. This scenario enables you to purchase the coin at a below-market rate, potentially leading to profits upon resale. However, if the Settlement Price surpasses the Knockout Price, you'll receive a payoff in USDT, including your principal along with the Knockout APR. However, if the Settlement Price equals or falls below the Purchase Price, you'll buy the coin at the Purchase Price, potentially incurring a loss.

This product is suitable for investors anticipating a decline in market volatility, thereby benefiting those expecting the coin's price to remain within a specific range. It's also beneficial for investors aiming to accumulate more crypto during 

 or low volatility periods. Nevertheless, using Bybit Discount Buy demands adept risk management skills, a high tolerance for risk and a solid grasp of market trends.

How Discount Buy Differs From Traditional Crypto Trading

Unlike traditional crypto trading, in which you buy and sell coins at the market price, Bybit Discount Buy allows you to potentially lock in a lower price for your future purchases or earn a yield. This potential advantage allows you to either buy more coins with the same capital investment, save money on your purchase or collect interest. 

However, there’s also a risk that the market price will drop below the purchase price, in which case you’ll buy the coin at a higher price than the market rate. Therefore, Bybit Discount Buy is more suitable for long-term investors who believe in the future growth of their desired token, and aren’t affected by short-term price fluctuations.

Strategic Timing for Using Bybit Discount Buy

Discount Buy works well for investors who want to target a lower entry price than current market values for a coin. This product particularly thrives in stable market conditions. Understanding how to strategically use it involves considering the following factors.

Market sentiment, which reflects investors' feelings about the crypto market, significantly impacts Bybit Discount Buy's performance. Typically, during times of bearish or stable market sentiment, there's a greater chance of the Settlement Price falling within the Knockout Price and the Purchase Price, which can be advantageous. You can gauge 

 through sources such as news, social media, volatility indices and trading volume.

Price trends reflect the direction and strength of price movements. You can use tools such as trend lines, chart patterns and moving averages to assess them. Bybit Discount Buy is beneficial during a market consolidation phase when prices are expected to remain within a narrow range. 

This scenario allows either purchasing coins at a discount for later sale at the market rate or waiting for an upward breakout. However, using this feature during strong uptrends or downtrends may lead to missed opportunities or potential knockout situations, due to price movements breaking out of the expected range.

Determining whether to use Bybit Discount Buy involves comparing potential losses to potential gains in the contract, and assessing the 

, which depends upon plan parameters such as the Purchase Price, Knockout Price and Knockout APR. Generally, lower Purchase Prices elevate the risk/reward ratio, as they offer more significant discounts but increase the chances of being knocked out. 

Conversely, higher Knockout Prices lower the risk/reward ratio, as they provide a higher APR but reduce the chances of buying coins at a discount. Higher Knockout APRs increase the risk/reward ratio by offering more interest, but also heighten the chances of being knocked out.

When you use Bybit Discount Buy there are three specific potential outcomes, each presenting distinct conditions and strategies for users.

If the Settlement Price surpasses or equals the Knockout Price, users get back their principal plus the APR in USDT. 

Upon receiving USDT as a payoff, users have a couple of options: Reinvest it in buying more coins at a lower price, or put it into another Discount Buy plan with a higher APR or a lower Knockout Price.

Bybit offers several avenues for reinvestment, including 

 enables users to earn interest on their idle tokens by staking them in flexible or fixed-term plans. Choose from various tokens and durations and enjoy APR and other benefits. 

If the Settlement Price falls between the Purchase Price and the Knockout Price, you'll buy the desired coin at the Purchase Price and make a profit. This tactic locks in a lower price for the coin than the market rate at the settlement date.

 is a short-term trading tool tailored for low-volatility markets, allowing you to predict price movements within a specific time frame. Depending upon your forecast, you can deposit and potentially receive returns in USDT or crypto assets. With 21 coin pairs and three deposit periods available, Bybit Dual Asset 

 seeking enhanced returns, irrespective of market direction. It's ideal for those aiming to accumulate different crypto assets, capitalize on swings or make quick trades during both uptrends and downtrends.

 rewards you for providing liquidity to the Bybit Spot market. You can choose a trading pair, deposit funds to the liquidity pool, and earn income from trading fees and 

Buy Scenario 2: Less Profitable or Break-Even Purchase

When the Settlement Price falls below or equals the Purchase Price on Bybit, acquiring the target coin takes place at a rate that either doesn't yield profits or breaks even.

To minimize losses with Bybit Discount Buy:

 is a non-principal-protected product that offers a unique way to earn income from the crypto market. Unlike traditional trading, in which you buy and sell coins at the market price, 

 allows you to choose a base coin and a target coin, and receive a payoff based on whether the settlement price is higher or lower than the current price.

However, there’s also a risk that you may lose your entire investment if the settlement price falls within the preset range, which is determined by the product’s parameters. Therefore, Bybit Double-Win is more suitable for experienced investors who would like to capitalize on significant headline events that have shaken the industry or strategically manage risks associated with market volatility within a set time frame. Bybit Double-Win supports BTC, ETH and LINK as base coins and USDT as the target coin.

 are a type of derivative product that allows you to trade the price movements of various assets without owning them. You can choose to go long or short on a trading pair and 

 your position to amplify your profits or losses. For example, if you 

, you’ll incur 10 times the profit or loss as BTC’s price changes.

Evaluating Bybit Discount Buy for Your Trading Style

Bybit Discount Buy allows you to buy coins at lower prices than the market rates at settlement, based on the coins’ volatility. It’s ideal for traders who believe in the long-term growth of their desired coin and aren’t fazed by short-term price fluctuations. 

However, not all trading styles match this product. Here’s what to consider:

Bybit Discount Buy offers a strategic way to potentially acquire BTC and ETH at discounted rates. Not without its risks, It's best suited for investors looking to ramp up crypto holdings in bear markets at lower volatility levels. These investors feel more confident about long-term growth. Assessing market sentiment, understanding price trends and evaluating risk/reward ratios are critical. 

Each outcome — Knockout, Profitable Purchase or Less Profitable/Break-Even Purchase — provides a distinct feature that results in either a lower predetermined purchase price, offers a yield, breaks even or results in losses. Bybit also provides diverse avenues for reinvestment and portfolio expansion that complement Discount Buy. Make sure you align your opportunities with your trading style while considering volatility, liquidity needs and your time horizon. 

 and strategic use of this product can maximize its advantages for committed, risk-aware investors.

Intermediate

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Bybit Discount Buy: Your BTC and ETH Bull Market Advantage

PayPal has collaborated with MoonPay to provide its 426 million U.S. customers access to more than 100 different cryptocurrencies, adding to its original offerings of Bitcoin, Ethereum, and its stablecoin, PYUSD.

The SPX index was up 0.91%, as the market welcomed the dovish remarks from the Federal Reserve. The broader cryptocurrency market was down, with Bitcoin and Ether up by 4.14% and 1.68%, respectively in the past 24 hours.

Today’s outperformer is AR, which jumped 25.1% after HackMD integrates Arweave for permanent blockchain document storage.

Arweave (AR), launched in June 2018, is a decentralized platform for permanent data storage, leveraging its AR cryptocurrency to incentivize users and ensure data permanence. It offers easy web access and is developing moderation tools, with a key partnership with the Internet Archive highlighting its commitment to secure data preservation. 

 integrated with Arweave in March 2023, enabling users to permanently store documents on the blockchain. This feature ensures decentralized, immutable storage for important documents such as white papers. Users can export and import documents between HackMD and Arweave using the ArConnect wallet and browser extension, enhancing data security and permanence. This integration underscores HackMD's commitment to leveraging web3 technologies for secure and efficient document management.

Check Out the Latest Prices, Charts, and Data of 

PayPal has collaborated with MoonPay to provide its 426 million U.S. customers access to more than 100 different 

, adding to its original offerings of Bitcoin, Ethereum, and its stablecoin, PYUSD. This move reflects PayPal's increasing engagement with the cryptocurrency sector, highlighted by the rapid rise in PYUSD's market value and its integration into PayPal’s cross-border payment service, Xoom. This development occurs as U.S. regulators intensify their oversight of cryptocurrencies.

U.S.-based spot Bitcoin ETFs, including BlackRock's iShares Bitcoin Trust, experienced a record single-day outflow of over $563 million. This coincided with a significant drop in Bitcoin's value. Despite the outflows, industry analysts affirm that such fluctuations are normal and the ETFs are functioning smoothly. 

Mode's community has propelled the platform into a leading Layer 2 network, boasting over $500 million in TVL and significant ecosystem growth. In response to this success, Mode will end 

 on May 5th and launch Airdrop 2 with 500 million MODE tokens to further incentivize ecosystem participation. The native $MODE token, essential for governance and ecosystem growth, will launch on May 7th. The first airdrop saw 5.5% of MODE's total supply allocated, with significant vesting terms for top wallet holders to promote long-term holding. Airdrop 2 aims to continue this momentum by rewarding ongoing user and developer engagement.

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PayPal Expands Crypto Offerings to 426 Million U.S. Users through MoonPay Integration

Trading

Easily predict market movement with trend lines. Traders, the knowledge within will surely be a great precursor to your success.

Crypto trading is volatile, and traders are constantly looking for ways to profit from it. Using technical analysis is one of the best ways to identify trades in volatile markets.

Technical analysis describes past price action and extrapolates it forward. Of course, nothing lasts forever, which is why traders carefully place a stop-loss on each trade at certain price levels, based on the analysis.

Over the next few minutes, we’ll discuss a popular technical analysis tool called trend lines. Many traders love using trend lines because they provide excellent risk versus reward.

 will help you spot good crypto to trade, but 

 helps you spot the entry and exit points of that trade.

Crypto technical analysis involves following patterns from the asset’s price history to determine what might happen in the future. It’s based on the 

 of the market, and on the fact that the patterns recur over and over on a variety of chart time frames.

As these patterns frequently appear, the trader can identify good entry and exit price points for trading the cryptocurrency. Essentially, technical analysis tells the trader at what price level to invest in the crypto and the right time to withdraw from the trade. 

As a result, technical analysis is crucial to the net profit or loss of your trading account.

As the name suggests, trend lines are used in technical analysis to determine the direction of a trend. They’re drawn along the extreme points of the trend. If prices are consistently moving higher, then the trend line will be slanted upward. If the market is in a downtrend, then the trend line will be slanted downward.

More importantly, trend lines are used to determine support and resistance levels. Support is the place where sellers stop selling and buyers start buying. In support, the imbalance of buyers and sellers shifts toward the buyers. As a result, you typically see prices rebound higher off of support.

The opposite is true for resistance. Resistance is the ceiling on the chart that appears to hold prices down. Buyers see prices getting too high and they stop buying. Sellers begin to emerge because the asset is no longer moving higher. This forms a level of resistance that appears to repel prices lower.

 that recur at the same price level. This is known as horizontal support and resistance.

However, support and resistance levels don’t have to be horizontal. Support and resistance levels can also slant upward or downward with trends. It’s these upward and downward trends on which traders focus: they draw trend lines to help them identify entry and exit points for their trades.

In the Bitcoin chart above, prices are trending higher. Each time Bitcoin dips, it finds support near the support trend line, bouncing higher and creating a succession of increasingly higher lows.

It’s important to note that support trend lines don’t last forever. Eventually, they break. When the trend line is broken, prices sometimes revert to the underside of the broken support line before proceeding lower. On the Ethereum chart above, we can see how the support trend line eventually breaks. Later, prices rally back up below this broken support line, which now acts as new resistance.

As prices trend lower, resistance trend lines begin to form. This provides the crypto trader with a zone in which to consider selling short.

Another way crypto traders use trend lines is to buy breaks of resistance and sell breaks of support.

In the Bitcoin chart above, prices consolidate for several weeks in early March 2021. A trader can draw a resistance trend line, then wait for a break higher. In early April 2021, Bitcoin finally breaks higher above the trend line and continues to rally. The break above the trend line is a signal the correction may be over, and the market is ready to resume its uptrend.

Drawing trend lines is more of an art than a science. Therefore, it will take a little practice to train your eyes where to draw them for maximum benefit.

When trend lines are drawn correctly, you’ll see the market react at the line. Perhaps the market eventually breaks through the line, but first, you should see it dances around the line as if it’s going to reverse.

In the Bitcoin chart above, the line is drawn at points 1 and 2. When the line is extended further to the right, point 3 creates a reaction bounce higher. This bounce is eventually retraced and Bitcoin collapses through the trend line. Bitcoin eventually comes back to retest the bottom side of the trend line near point 4.

Sometimes, that third touch of the trend line produces a large trend, while at other times it’s merely a “fake-out.” You’ll find more success drawing your trend lines when you place them at common reaction points.

Let’s go over specific examples of how to draw ascending trend lines in an uptrend (uptrend line), and descending trend lines in a downtrend (downtrend line).

How does one draw trendlines? Well, drawing a trend line is fairly easy once you get the hang of where to start. As you look at an uptrend line, identify two or three common low points. These low points should be creating a succession of increasingly higher lows.

Once you’ve spotted these low points, activate the trend line drawing tool on your charting software. Then, click at the lowest point on the trend. Make a second click toward the right at another common low point. If your trend line doesn’t extend farther to the right after your second click, then you need to activate this setting to enable the extension of the line to the right.

After you’ve set the ascending trend line, make sure the line is crossing through the outer edges of the candle wicks, and not through the bodies. 

On the Ripple chart above, there appear to be some common low points where a trend line can be drawn. After drawing the line at the three low points, make sure the line is extending farther to the right.

Fortunately for Ripple, the price does retreat to the trend line on multiple occasions. This tells us that the trend line’s implications for the market are important. Eventually, prices break below the trend line, eventually retesting the underside after the break. 

Drawing a descending trend line is similar to drawing an ascending line, but in the downward direction. Descending trend lines are found in down trending markets.

First, look for a cryptocurrency market that’s experiencing a consolidation where prices have been correcting lower.

Second, look for two or three common high points within this correction that reflect a series of lower highs.

Third, activate the trend line drawing tool on your chart. Click first at the leftmost high point, then make a second click toward the right to finish the line. Your drawn line should cover the higher extremities of the candle wicks, and not pass through the bodies.

Make sure the trend line is extended to the right.

We know we’ve drawn the trend line correctly when it passes through the highs of the downtrend. As the price unfolds going forward, we see the market coming back into the descending trend line, creating future trading opportunities.

Again, trend lines don’t last forever. Eventually, the price breaks as Cardano (ADA) rallies above the resistance trend line.

An Example of Trend Line Trading Strategy

There are easy ways to identify trading opportunities by using trend lines. We’ll review two simple strategies for trading trend lines to help you identify good 

First, find a market in a confirmed uptrend and draw a correct ascending trend line. Extend the line to the right and look to buy the next time the price retreats back to the trend line.

As the market reaches the trend line, wait for another piece of bullish confirmation, such as a bullish candlestick formation or another indicator turning positive.

On the cryptocurrency chart for LINK, above, the price corrects back to the ascending trend line, then carves a bullish engulfing candlestick formation on the 2-hour chart. Once the additional confirmation is in place, go long and place your stop-loss just below a recent swing low, which must be below the ascending trend line.

To figure out your take-profit level, calculate the distance between your entry and stop-loss, double that amount and then add it to your entry price.

The second trendline trading strategy involves descending trend lines. With a lot of investment going into crypto, the bull market rallies have tended to last longer than the bear market corrections. Therefore, when the cryptocurrency market is experiencing a bear market correction, it’s an opportunity to invest at cheaper prices.

For example, when Bitcoin collapsed in the summer of 2021, a trader could draw a descending trend line on top of the downtrend. Then, when prices break above the descending trend line, it’s a signal that the mood of the market is changing from bearish to bullish. A trader would enter long on the bullish break of the trend line, while placing their stop-loss just below the swing low.

After breaking the descending trend line, Bitcoin goes on to gain 60% in about six weeks.

Things to Consider When Drawing Trend Lines

Aside from drawing trend lines, other things could impact the trend in the long run. It’s wise to check into these items before committing to a trade.

Market trends tend to follow the trading volume. As market prices reach an ascending trend line and then bounce, look for volume to increase to indicate the support level for the new trend. If the volume is falling as the price is rising, this may be the signal for a false break higher, and possibly lower lows on prices.

The crypto market is fractal, which means the patterns you identify on longer-term time frames can also be found within shorter-term time frames. However, the signals generated on the shorter-term time frames tend to be less reliable, because there’s not as much data going into the creation of each price bar.

Therefore, give less weight to the signals found on the minute charts in favor of the larger trends.

Trend lines are one of the simplest and most basic tools available to identify trading opportunities. Trend lines are easy to learn and quickly implemented. For all traders, it is important to learn how to read crypto charts – with trend lines, you can get a good grasp on price movements.

A trader can use trend lines to identify opportunities in either a 

, and within any chart time frame. However, be mindful that signals generated on minute charts have a greater possibility of being false signals due to the smaller amount of data they contain.

Trend Lines: How to Draw and Use Them for Crypto Trading

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards