Market News
Bitcoin's price has been trading sideways during the weekend and is currently trading close to $34,000, according to CoinGecko. We anticipate a highly volatile week ahead, hopefully to the upside.
Currently, bitcoin's price is trading above $33,900, according to Nomics, and we hope it makes a run at $35,000 soon. Like we wrote last week, bitcoin's chances to enter a new rally would increase if it found support above the 21-day EMA, which seems unlikely for the time being - at least while sellers are in control.
Therefore, we don't expect much positive price action until the trend starts to reverse. This means it's a great time to buy. Media outlets begin to realize the impact inflation may continue to have on bitcoin's price in other news.
According to Coindesk, "This inflation, which the U.S. Federal Reserve calls "transitory" (Beltway-speak for "temporary"), comes at a time when the traditionally obvious activity of collecting interest on your savings from your bank yields effectively nothing. The meagre cost of money comes courtesy of the continued extraordinary monetary policy experiment underway at the U.S. central bank, whose congressional mandate is to maintain 'full economic employment and stable pricing,' which the Fed says means keeping inflation at around 2% per year.
To be clear, 5% inflation means that, in broad terms, what cost a dollar in May of last year costs a dollar and five cents this year. In practice, inflation is lumpy; some areas like energy and airline fares have seen massive increases of 30% and 24% year over year, while a pair of items (medical care commodities and alcoholic beverage components) saw tiny drops (-1.9% and -0.2%, respectively). These changes in price are then weighted by the Bureau of Labor Statistics (the BLS) to create the modern CPI."
While this is not great for the average Joe, we think it will shortly translate into a higher bitcoin price. To fully understand why to read our essay available here.
Adding to the above, there's a straightforward adoption of cryptocurrencies by other industries, which will add extra pressure to cryptocurrencies prices in general. A critical pair, we think, is Sports and Esports.
According to Cointelegraph, "In recent years, a growing list of mainstream soccer clubs has continued to launch their very own digital currencies/fan tokens. And while the jury is still divided on the actual utility of these offerings, the fact of the matter remains that the soccer world has been quite sharp in recognizing the technological and monetary proposition put forth by crypto."
We've picked an altcoin we think may change the problem described above for good. This week, we'll look into RealFevr, a fantasy sports platform that launched its token, $FEVR. So far, price performance has been a total banger. More on that later.
For now, let's see what traders are saying.
Traders Tweets
This week’s first tweet comes from Crypto Coffee, a crypto trader.
He shared bitcoin’s 3-day price chart and added a few zones showing where he thinks BTC/USD is moving next: towards the low $20,000s. The reason presented by the trader, “Real ones remember”, is linked to the green box showing support around this price range.
Will BTC/USD dip below $20,000? There’s a chance, however for the time being, we think rather slim.
The following tweet comes from Daan Crypto Trades, a TA analyst.
He 12 tweets explaining his current market vision and why he thinks bitcoin's price is poised for a massive upwards move. He summarized it as "Feels like we're coming up to an inflexion point. Both price and volume on $BTC haven't been as compressed within this range as it is right now. This usually leads to a big move."
He lays out a bearish and bullish scenario and explains how the price would move in both cases. In his analysis, once bitcoin's price breaks $42,000, it will start a new rally towards $60,000.
We hope he's correct!
The last tweet of the day comes from whalemap, an on-chain analytics account.
They shared bitcoin’s “Large Wallet Inflows” that show when large sums of bitcoin were purchased and at what price levels. According to whalemap, there’s strong support between $31,000 and $34,000, and resistance starts around $35,500 and goes all the way to $37,900.
Therefore, if bitcoin’s price reaches $40,000, it could start a new rally - as long as buyers flood into the market.
Market Watch
During this weekend, BTC/USD traded sideways. Today it’s slowly moving up.
Currently, BTC/USD is trading just above $33,800 and compared to last week, it lost around 2%, according to Nomics. Not least, bitcoin’s price is still below a critical resistance level, the 21-day EMA (blue) - a clear bearish signal that BTC/USD may drop even further if buyers don’t come to the rescue. Not only that, but bitcoin’s price failed miserably to find support above $35,000, and the volume keeps dropping another bearish sign.
As we wrote last week, until bitcoin’s price is above both the 21-day EMA and the $35,000 range, we won’t change our mind much and will continue to think it may drop further before starting a new rally.
Still, the VPVR, on the left of the chart, shows much strong support between $31,000 and $34,000; therefore, we don’t expect BTC/USD to remain below $31,000 for long if it drops. Once there’s a new rally and bitcoin’s price moves above the 21-day EMA and buying volume returns, we will become more hopeful.
Let’s see how things are going in the altcoin world.
Weekly Altcoin
This week’s altcoin is the FEVR token, RealFevr’s utility token.
FEVR/USD was launched on Thursday last week at PolkaStarter. While there was a little dump after the IDO, the price soon entered a full-discovery mode. That’s an accomplishment all by itself since a high number of IDOs tend to just “pump-and-dump”. This shows an increased number of buyers interested in the project - which is proven by looking at BSCscan and digging into the user metrics. Currently, there are almost 4,000 holders.
At the time of this writing, FEVR/USD is trading around $0.009 after reaching a top close to $0.016, and we think it may continue to move up until it comes to $0.1 - a price range where we anticipate a minor sell-off. However, we think it may consolidate between $0.01 and $0.05 for a while before that happens.
Some great news is that FEVR’s price found strong support above $0.009, where the 21-day EMA (blue) is sitting. We expect FEVR/USD to trade between the pink range before a new rally starts sometime next week. Not only that, but buy volume is growing at a steady pace, and the company is about to release its collectibles marketplace.
We foresee some magical days, weeks and months ahead. HODL!
Conclusion
BTC/USD has been consolidating for the past month. While bitcoin:
Remains below the 21-day EMA, 20-day, 50-day and 200-day MMA,
Continues to trade below its prior high around $64,000,
We think it’s a great time to accumulate more BTC. Once buying volume arrives at the market and bitcoin finds support above these critical levels, our confidence that the bull has returned and altcoins will start to pump back up will significantly increase.
Nevertheless, we think it’s still a great time to buy quality altcoins such as FEVR and HEX. Let’s see how the week progresses.
Safe trades. Have a profitable week.
CryptoNerds DAO Proposal 4: Results Are In!
Vote on the altcoin we’ll look at every week! This week, the winner was $FEVR.
Next week’s poll is OPEN. Vote here.
It’s up to you what altcoin we pick next week. For more details, check this thread.
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