Market News
Bitcoin’s price is recovering from a significant 8% drop, according to CoinGecko. While BTC/USD is not out of the woods, we expect buyers to hold its price above $30,000 for the next few days. After that, it’s a mystery.
Currently, bitcoin’s price is trading close to $31,800, according to Nomics. Buying volume has slightly increased, but bitcoin’s market cap remains below $600 billion, a bearish sign.
While price-action may be disappointing, we think this is an excellent time to accumulate other bitcoin and top altcoins such as ETH, HEX and FEVR.
According to Coindesk:
“The relative strength index (RSI) on the four-hour chart registered an oversold signal on Monday as bitcoin dipped below $30,000. The RSI is not yet overbought, which could keep buyers active towards $34,000 resistance. The 100-period moving average on the four-hour chart is sloping downwards as buyers have quickly taken profits on rallies. Short-term momentum is improving as bitcoin returns to a month-long range. The rebound above $30,000 suggests selling pressure from June is starting to slow.”
Therefore we could see bitcoin’s price rising above $33,000 before finding some resistance.
According to Cointelegraph, “Bitcoin’s (BTC) painful plunge below $30,000 on Tuesday turned into a so-called “buy the dip” opportunity for Alameda Research, a Hong Kong-based quantitative trading firm and liquidity solutions firm headed by FTX CEO and founder Sam Bankman-Fried.
Quantitative trader Sam Trabucco revealed late Tuesday that the company purchased Bitcoin during its latest price decline, adding that the company’s cautious strategy to go long BTC/USD surfaced out of at least three “recovery” catalysts: a potential end to the ongoing crypto FUD (China ban, Grayscale epic unlock, etc.), the stock market’s intraday recovery, and weaker long liquidations in the derivatives market.”
It seems Alameda Research believes bitcoin’s price won’t go much below $30,000.
Another extremely bullish news comes from our own Pedro Febrero, who predicted a $100 million bitcoin by 2030. Will that happen? While the odds are low, only time will tell.
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 "Coins Moving to Strong Hands" chart and wrote that: "Short-term price action doesn't invalidate broader trends. Price can diverge from underlying investor behaviour, just as it has for the last few weeks: but not forever. Against popular belief, I still see a supply squeeze in play and continuation of the Bitcoin bull market."
The on-chain analyst believes there's a chance the bitcoin bull market could return due to a supply shock, which translates into more buyers than sellers.
The following tweet comes from John Wick, a TA analyst.
He shared bitcoin’s daily price chart and added some pointers explaining the market moves.
Wick also wrote that: “We finally got the big reversal bar I have been waiting for after the squeeze. A Squeeze fakeout.
I jumped the confirmation that we need tomorrow & bought the reversal signal. R/R is too good with a stop under $29k.
If confirmed tomorrow, good chance we target $44k 200MA.”
He means that he sees a high probability of bitcoin’ price moving back above the 200-day Moving Average, which is currently hovering around $44,000.
While we think that’s highly unlikely, there’s a chance it happens. If it does, we think the bulls would return in full force and push bitcoin’s price above $50,000 in a matter of days.
Of course, this is pure speculation. The weekly macro chart shows another story, one that is, unfortunately, far more bearish.
The last tweet of the day comes from Dan Held, Kraken’s Growth manager.
He shared a rather funny meme showing the stupidity of some people who worry about bitcoin crashing 50%, while the dollar has devalued 99% versus bitcoin during the past ten years.
Why worry, homie? BTC/USD is on the right path to glory.
Market Watch
Bitcoin’s price is recovering from a significant drop that occurred in the past two days. Look at that green dildo—what a sight.
Currently, bitcoin’s price is trading just above $33,800 and compared to last week, it lost around 3%, 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. Our mood will change only if bitcoin finds support above both the 21-day EMA and the 20-day MMA.
Volume seems to be picking up, so let’s hope the trend remains and buyers return in full force.
Still, the VPVR, on the left of the chart, shows not much strong support below $30,000 and a critical resistance level around $33,000 - hence it may not be easy for BTC/USD to break this level. If it doesn’t, we expect it to fall below $29,000.
To conclude, bitcoin’s price has traded within the predicted weekly range so far, and there’s still room to move up.
Let’s see how things are going in the altcoin world.
Weekly Altcoin
Today we’ll look at $FEVR, RealFevr’s utility token and $HEX.
FEVR/USD is currently trading within the predicted range, close to the tippy-top, and its price is trading just below $0.007; the total market cap is above $100 million, according to CoinMarketCap, another magnificent milestone.
Another important metric is the number of hodlers. BSCscan shows there’s over 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 above the 21-day EMA, we remain hopeful.
If you need some fuel to keep you engaged with the project, check out RealFevr’s new website. It’s awesome. Also, the first drop is about to start, and soon fans will be able to collect everlasting football moments and trade, borrow and lend them to other fans.
A quick update on HEX: it recently broke its record price and is trading above 12 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.
While HEX/USDT remains below the predicted range, we think it will soon start another rally.
Hence, this may be an excellent opportunity to buy HEX/USD below $1. Seize the opportunity!
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: Closed
Vote on the altcoin we’ll look at every week! This week, the winner was $FEVR.
It’s up to you what altcoin we pick next week. For more details, check this thread.
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