Market News
Bitcoin's price keeps trading sideways, according to CoinGecko. We expect that volatility will soon rise in the next few days.
Currently, bitcoin's price is trading close to $33,000, 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.
While price-action may be disappointing, we think this is an excellent time to accumulate extra bitcoin and top altcoins such as ETH, HEX and FEVR. In other news, it seems that ShapeShift, the exchange launched by OG Erik Voorhees, is shutting down, but not without a bang.
According to Coindesk, "Crypto trading pioneer ShapeShift is closing its doors, handing over its legacy to a decentralized autonomous organization (DAO) controlled by holders of its FOX token.
As it begins a months-long process of closing up shop, it will start by airdropping $98 million in crypto to decentralized finance (DeFi) investors across multiple blockchains (more on that value estimate below)."
This is excellent news for ETH holders and DeFi users since most widely adopted Dapps' users will receive FOX, ShapeShift's governance token.
Adding to the above, investors think bitcoin is currently not a great hedge against inflation - which is incorrect if we take a broader, macro look.
According to Cointelegraph, "As for Bitcoin, the outlook remains mixed, especially after the cryptocurrency failed to respond to inflation alarms in recent months, China's crackdown on the crypto sector, increasing regulatory scrutiny, the Fed's rate hike plans for 2023, and Elon Musk's anti-crypto tweets."
We take another dive at RealFevr's FEVR token in the altcoin section and how it has been performing. We'll also make a mention of HEX since it recently broke a new all-time high. Congrats to all HEX holders and stakers. You're the real MVPs.
For now, let's see what traders are saying.
Traders Tweets
Today’s first tweet comes from William Clemente III, an on-chain analyst.
He shared bitcoin’s “Liquid Supply Ratio” and wrote:
“Nothing has changed; supply shock still in play.
LSR shows that the action of Bitcoins being reabsorbed by strong hands only continues to diverge more from price. Exchanges also down -21,829 BTC in the last 2 weeks; a clear trend of accumulation in those flows as well.”
According to Glassnode, LSR is “The monthly (30d) net change of supply held by liquid and highly liquid entities.”
This is exceptionally bullish news since it shows large bitcoin holders are buying and not selling. Diamond hands are great for long-term price appreciation. 🌕 soon?
The following tweet comes from Daniel Joe, a TA analyst.
He shared an extremely bullish chart, showing the “Third largest #BTC wallet just added 122 BTC ($3.9 million) during the recent dip. This wallet now holds 116,120 BTC worth $3.7B. This whale entity loves buying #BTC in the low 30s.”
This is just another essential metric that proves Clemente’s point: whales are accumulating hardcore. We strongly recommend more effusive traders take a chill pill and follow the money.
It’s coming home, boys.
The last tweet of the day comes from Dan Held, Kraken's Growth manager.
He shared a rather funny meme and one of our favourites: it shows the 1800s "nocoiners" who, back then, we're preaching about the dangers of electricity and how everyone would eventually be wiped-out by electricity.
Thank god we dodged that bullet, right? Who would ever know that you can safely transport electricity, relatively cheaply and easily? Oh, wait. Science!
The same logic applies to bitcoin deniers. You may not like it, but it's not going away any time soon!
Market Watch
Bitcoin’s price was recovering from a minor drop yesterday. Look at that beautiful hammer-shaped candle—what a sight.
Currently, bitcoin’s price is trading just above $33,800 and compared to last week, it lost around 4%, 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.
Nonetheless, volume is not that critical as long as buyers are in control. Let’s hope that happens soon.
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.
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 last week at PolkaStarter. Since the launch, FEVR has gained over 1,000% in valuation, even after the recent dip that took the coin towards $0.006, its current price. Adding to that, the total market cap is close to $100 million, according to CoinMarketCap, another magnificent milestone.
Another important metric is the number of hodlers. BSCscan shows there are close to 4,000 holders.
At the time of this writing, FEVR/USD’s 4-hour chart shows the cryptocurrency is trading above $0.0061 after reaching a top close to $0.016. Right now, there’s a precise consolidation pattern forming, so we think it’s an excellent time to accumulate.
While FEVR is below the 21-day EMA, we remain cautious. Nevertheless, volume remains above $5 million, an excellent sign.
If you need some fuel to keep you engaged with the project, check out RealFevr’s new website. It’s awesome.
A quick update on HEX: it just broke its record price and is trading above 10 cents. Congrats to all HEX holders; this is an astonishing feat. We shouldn't forget there's still enormous gatekeeping, which doesn't help HEX to scale and reach new potential buyers.
We think that, in due time and with the launch of PulseChain, HEX will continue to appreciate as new buyers reach the market.
We can't forget HEX use case is impressively simple and to the point: to replace the certificate of deposits. The more hex you stake and the longer you stake for, the more yield you earn.
How'sHow's it possible something so elegant slipped away from so many investors' portfolios? To each their own but…
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 5: Vote Now!
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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