Crypto: The Calm Before The Storm? | Daily News 9/6/22
Bitcoin’s price has moved as much as rush hour traffic in Times Square 🚕 over the last day or so, crawling forward a click at a time!
In 24 hours, Bitcoin has stuck to its familiar range of $30,000 - $30,600, currently sitting in the middle lane at $30,350 as of writing. Check the market prices here!
We can see that the price action has remained relatively positive, due to staying within an ascending triangle trendline, as pictured below.
The Ascending Triangle where Bitcoin currently resides in on the daily timeframe. Will we break above or below?
If BTC can maintain this range, and the price can stay over the ascending trendline keeping the pattern intact, this will favour the buyers.
However, a negative here is that the price keeps dipping below the 20-day moving average (white line) suggesting there is still selling pressure. If the price can't hold and it dips below the ascending trendline, then we could see BTC’s price drop to about $28,670 where it holds strong support. Now, we know analysis like this is speculative, but this is based on probability and historical facts - there is no crystal ball 🔮! However, we know we will see the next big move for Bitcoin once it breaks this ascending triangle, either above $32,650 or below $28,670.
So, what news has developed in the past 24hrs? Well according to PwC, despite the recent bearish trend we have seen, more traditional hedge funds are slowly embracing crypto, although their exposure is minimal in these times. Now, what does that tell you about the future? 🚀🤔 Read the full article by PricewaterhouseCoopers here.
Also, data is showing us that Bitcoin ‘whales’ 🐋 (whale = an individual or group that holds large amounts of Bitcoin, enough that they could potentially manipulate the market) are accumulating more and more at this present time! Take a look at the chart below from Glassnode. You can see that from the start of the year, the number of wallets holding more than 10,000 BTC (I know right?!🤯) has been increasing over time, especially over the last 20 weeks or so.
This pattern could potentially show huge gains for BTC’s price in the near future as it signals even more interest in Bitcoin!
Just another reminder, 📅 we do have the Consumer Price Index (CPI) tomorrow which will indicate the market’s direction with inflation, and this will ultimately have an impact on Bitcoin. Why? Well, the more expensive everyday goods and interest rates rise, the less the average investor will have to invest into assets like Bitcoin because they will be more mindful of their general spending and saving!
🚨 Be sure to keep an eye out on our news regarding this tomorrow!
Ethereum is currently trading at just below $1800 with a 🔻 -0.45% drop in the last 24 hours. However, traders are still adjusting and forecasting their downside price targets even after Ethereum’s testnet successfully integrated the merge to Proof of Stake yesterday! This news had little effect on the price. Traders are pointing out more patterns that could indicate more downside action but the most important level to look for is if ETH drops below its support of $1700, then further downside is on the cards!
Across the board with altcoins, there has been very little change to the price over the last 24 hours, following the same path as Ethereum, and of course Bitcoin.
🟢 Notable altcoins that have actually performed relatively well have been Solana (SOL) +4% and Chainlink (LINK) with almost 9% increase over the last day.
🔴 Litecoin has dropped almost 2% in the last 24hours - with big news reporting that all major South Korean exchanges (Upbit, Bithumb, Coinone, Korbit, and Gopax) are on the way to delist Litecoin (LTC) in the coming days over privacy feature concerns! Could this be a spark to further downside 📉 to LTC? Will we see a domino effect on other exchanges and other countries?
🗠 The S&P 500 and NASDAQ are both slightly down in the last day by about 1%. Investors are generally looking towards the CPI that will be released tomorrow and it is generally believed that the markets could see a rally at any hints of a pause in rate hikes. And this relates to Bitcoin and crypto too! If interest rates stay manageable and consumer prices don't have a big increase, it will be signs of inflation possibly reaching its peak, which ultimately means more 💲 could be invested in commodities like Bitcoin!
🌎 In-line with this news and according to a survey by Bitstamp back in April, the crypto space is on track to take over financial markets in the next decade & world authorities are also bracing up for this shift. Digital currencies like Bitcoin are one of the three main areas global authorities are now focused on.
- The crypto market is generally flat with not much price variance in the last 24 hours
- Mega-whales accumulating more and more Bitcoin, highest levels its been for over a year
- The CPI report is tomorrow, so a knock-on effect on Bitcoin is certainly on the cards
- Altcoins as expected have followed Bitcoin’s price action. However, the big news with the de-listing of Litecoin on exchanges is something to keep an eye on as it develops
- Crypto looking to take over financial markets in the next 10 years
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