Market News
Bitcoin is trying to break $40,000, as we write. In the past 24 hours, it has grown north of 8%.
Currently, bitcoin’s price is trading above $39,000, according to CoinGecko, and we hope it continues to move up. Most likely, sellers have been exhausted, and bitcoin’s price is setting up for a nice rally. Let’s see how the week progresses.
Cointelegraph wrote that “Also on the cards is a rally back to the stock-to-flow trajectory line, something which its creator, PlanB, says would pose a ‘surprise’ was it not to happen. Amid hopes that BTC/USD will still hit $100,000 this year, Decentrader predicted that it might only be a matter of months before Bitcoin is back on track.”
Could this mean bitcoin’s price will start a new rally towards $100,000 now? While it’s a hopeful thought, we don’t think the market is ready just yet. Still, more bullish news continues to come out, this time regarding bitcoin’s tech.
Coindesk highlights that “Taproot, the most significant improvement to Bitcoin’s protocol in years, now has enough mining support to lock in activation.
According to the parameters set forward by “Speedy Trial,” if at least 90% of the blocks mined in any of the designated 2-week difficulty periods “signal” their support for the upgrade, then the activation process can begin. To be more precise: 1,815 out of 2,016 blocks mined within a period have to include a little piece of encoded information that indicates that the miner who mined that block is in favour of the upgrade.
During this second difficulty period, at block 687284, that benchmark was met. By the time that the difficulty period ends on Sunday, it is likely that Taproot will have locked in with over 99% of blocks signalling decisively in its favour.”
Therefore, we think this is a great time to hodl and wait until bitcoin’s price breaks $40,000.
To conclude, some altcoins have also been moving up, such as ETH, BNB and HEX.
Let’s see what traders are saying.
Traders Tweets
This week’s first tweet comes from The TraderSZ, a crypto trader.
He shared bitcoin’s daily price chart and added two shadow areas, a green one showing support at the bottom and a red one showing resistance at the top.
He expects heavy resistance around $40,000, which we agree with by looking at the VPVR, which shows volume per price range. Not only that, we notice more buyers are entering the market, as well as old bitcoin addresses continue to accumulate bitcoin at a faster pace, according to Lookingintobitcoin.
That’s highly bullish.
![Twitter avatar for @rektcapital](https://substackcdn.com/image/twitter_name/w_96/rektcapital.jpg)
![Image](https://substackcdn.com/image/fetch/w_600,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fpbs.substack.com%2Fmedia%2FE3xXM6WXwAQErN-.jpg)
The following tweet comes from Rekt Capital, a cryptocurrency trader.
He shared the BTC/USD yearly price chart and wrote that "As per the #BTC Four Year Cycle, the largest growth in BTC's price occurs in Candle 1. $BTC is currently halfway through Candle 1."
If bitcoin's price behaves as it did in the past, something that is never guaranteed to happen, we could be witnessing the start of a brand new rally that will take bitcoin's price towards much higher price ranges.
Another extremely bullish data point for your records.
![Twitter avatar for @IncomeSharks](https://substackcdn.com/image/twitter_name/w_96/IncomeSharks.jpg)
![Image](https://substackcdn.com/image/fetch/w_600,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fpbs.substack.com%2Fmedia%2FE3xzA8hVgAQdB7l.png)
The last tweet of the day comes from IncomeSharks, a cryptocurrency-focused newsletter and analytics account.
They shared bitcoin’s dominance chart and wrote that “$BTC - Dominance looks to be going up, suggesting that money is flowing from alts to $BTC. If this keeps going up, we could see $BTC break $40k while alts bleed a little longer.”
Essentially, IncomeSharks believes that if bitcoin’s dominance goes up, that will take BTC/USD into much higher price levels; adding to that, altcoins would most likely suffer significant losses.
Still, we think some altcoins will continue to move up due to the sheer number of buyers and believers who hold these digital assets.
Market Watch
Bitcoin’s price has risen significantly in the past day, almost 9%. While we think a breakout to $40,000 is likely to happen until the end of the month, we also believe there will be significant resistance until BTC/USD finds support above the 200-day MMA (light purple).
However, bitcoin is already trading above the 21-day EMA, an excellent sign. Let’s hope it holds above it, which would indicate buyers are back in control.
Additionally, as shown in the predicted area (blue), we think BTC/USD will find a strong resistance near $41,000; hence, we expect a mini-drop once it reaches this level.
At the moment of this writing, BTC/USD was trading above $38,800, according to CoinGecko.
Once BTC/USD goes above both the 21-day EMA (light blue) and the 200-day MMA (purple), we think there will be enough wiggle-room for a nice consolidation between $40,000 and $50,000.
Just like we said throughout the week, a selloff was likely to happen before bitcoin’s price started another rally. That’s precisely what happened. We hope you’ve taken this opportunity to accumulate more bitcoin and perhaps other top altcoins. Now, it could be time for a sudden move towards $40,000.
In the altcoin world, we’re pretty weary; altcoins may start to drop significantly. However, we’re not entirely comfortable being exposed only to bitcoin; therefore we still recommend traders look into top-tier altcoins, such as ETH, HEX and BNB.
CryptoNerds DAO Proposal #1
The results of the CryptoNerds DAO weekly altcoin vote were in today at noon UTC.
HEX won with 100% of the votes. Congratulations to all voters. You can see the results by going into cryptonerds.eth Snapshot home page, and clicking on the proposal.
Weekly Altcoin Pick
Looking at HEX/USD, we think there’s plenty of room for the cryptocurrency to grow until it reaches $0.1, or ten cents. Despite that, HEX already has over $42 billion in market cap, according to Nomics.
With over 517 billion HEX in circulation, that would put the cryptocurrency at over $51 billion, above Cardano.
There are no reasons not to be highly bullish on a continuation of the excellent performance, especially with the sheer number of new buyers coming into the HEX market. Also, this cryptocurrency is still heavily gatekept from altcoins investors, as it does not appear on Coingecko and Coinmarketcap, an extremely posit thing - nor it is traded at top exchanges such as Binance or Coinbase.
Therefore, we expect the pump to ensue, even if HEX/USD takes a minor hit once it reaches $0.1.
Let’s see how HEX/USD progresses throughout the week.
Conclusion
BTC/USD has been recovering nicely since the +50% crash. While bitcoin:
Remains below the 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 ETH, BNB and HEX.
Safe trades. Have a profitable week.
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