Market News
Bitcoin's price traded sideways during the weekend, and today it had a minor 3% drop, according to CoinGecko. We expect that volatility continues to increase in the next few days.
Currently, bitcoin's price is trading above $33,100, according to Nomics. 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, "Bitcoin was lower Monday, falling along with most digital assets, as traders awaited a critical U.S. inflation report due out early Tuesday.
The largest cryptocurrency by market capitalization held above price support at $32,000, with $36,400 seen as the upside target. For the past seven weeks, bitcoin has primarily stayed in a range between $30,000 and $40,000."
Will the report push assets and commodities prices up? We think so. Throughout the day, there will be more clarity on the subject.
Adding to the above, there's a different fear lingering on the head of crypto investors.
According to Cointelegraph, "An event that is on every Bitcoin market participant's radar this month is the multiple unlockings of BTC at institutional giant Grayscale.
As Cointelegraph explained, the Grayscale Bitcoin Fund (GBTC) is due to release more than 40,000 BTC in the coming weeks, this having been subject to a six-month lock-up period.
Opinions differ about its market impact. Some are concerned that selling pressure will increase (only to then become practically zero after the unlockings are over), while others argue that spot markets will be broadly unaffected."
We take another dive at RealFevr's FEVR token in the altcoin section and how it has been performing. Long story short, it keeps holding above our predicted range. More on that, below.
For now, let's see what traders are saying.
Traders Tweets
This week’s first tweet comes from John Wick, a crypto trader.
He shared bitcoin’s 1-day price chart and wrote:
“We have now entered a zone of coiled up volatility indicated by the yellow shading.
VIOLENT move incoming & imminent. This tells you it's time to start paying attention. It can resolve as a squeeze breakout or fakeout in the coming weeks.”
He identified a possible squeeze to the upside that could take bitcoin’s price above $40,000 (red line). In a later tweet, Wick also gives two specific examples that prove his hypothesis. He wrote:
“The last two times we had a SQUEEZE on #Bitcoin
1) $9100 Squeeze breakout that broke us out into a stage 2 BULL MARKET extending all the way to $60k!
2) $60k Squeeze Fakeout that Started the CRASH extending down to #30k!”
The following tweet comes from LilMoonLambo, a trader.
He shared an extremely bullish chart, showing BTC/USD weekly price and a clear support zone above $30,000. He wrote that “$BTC held 34k support for eight weekly closes in a row”.
Essentially, while bitcoin holds above $30,000, we remain bullish on the long-term trend. If bitcoin’s price has above this critical price range, it shows buyers are interested in accumulating, which is just a consolidation phase before the next rally.
The last tweet of the day comes from William Clemente III, an on-chain analyst.
He shared Bitcoin’s “Balance in Miners Wallets” chart and identified a clear uptrend. He wrote that “Bitcoin miners have been accumulating for over a month now.” which shows how bullish miners are.
As long as essential stakeholders keep accumulating bitcoin, we’re confident a rally will soon begin.
Market Watch
Since Sunday, BTC/USD has dropped.
Currently, bitcoin’s price is trading just above $33,100 and compared to last week, it lost around 6%, 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 has failed miserably to find support above $35,000, and the volume keeps dropping another bearish sign.
At the moment of this writing, bitcoin’s market cap is above $600 billion.
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.
If the price does not drop any further, $28,000 could be a yearly bottom. We can only pray.
Let’s see how things are going in the altcoin world.
Weekly Altcoin
Today we’ll look at $FEVR, RealFevr’s utility token.
FEVR/USD was launched on Thursday last week at PolkaStarter. Since the launch, FEVR has gained over 1,000% in valuation. Its current total market cap is above $160 million, another magnificent milestone.
This shows a high number of buyers interested in the project - which is proven by looking at BSCscan and digging into the user metrics. Currently, there are over 4,000 holders.
At the time of this writing, FEVR/USD’s 4-hour chart shows the cryptocurrency is trading above $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 consolidation period.
Still, FEVR has dumped around 11% in the past 24 hours, as investors accumulate around the $0.01 range. Our predicted price range has been accurate, even though $FEVR is touching the bottom at the time of this writing. Let’s see if buyers come to the rescue.
Some great news is that FEVR’s price found strong support above $0.009, way above the 21-day EMA (blue) is sitting. Additionally, we expect FEVR/USD to trade between the pink range before a new rally starts, sometime in the next few days or weeks. Buy volume keeps growing and is currently well above $28 million.
If you need some fuel to keep you engaged with the project, check out RealFevr’s marketplace and video collectibles promo release. It’s absolutely sick.
Don’t forget to turn on the sound
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. 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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