Bitcoin is no longer a little-known digital currency. In the past year, there have been a number of stories about the technology that underlies Bitcoin, as well as the law enforcement agencies that are trying to keep the currency under wraps. Here are the five things to keep an eye on as Bitcoin continues to reach out to new users and businesses.
Bitcoin has been around for a while, but it’s still a relatively new platform, and its future is still to be determined. It’s been highly volatile in recent years; the currency has gone from $20 to $800 (and then down again), and people are still trying to figure out if it’s a viable investment. It’s also taken a fair share of flak for being linked to the Silk Road black market, and for being the currency of choice for drug dealers.
We’ve been watching Bitcoin for a while now, and there’s a lot to watch. Whether it’s the price of a single coin or the total value of all the Bitcoins in the world, there are few things more interesting to watch than Bitcoin. That’s why we’ve gathered five stories that will keep you in the loop on Bitcoin’s recent developments.. Read more about bitcoin this week and let us know what you think.Bitcoin (BTC) starts the new week with bearish sentiment or as a strong buy, depending on the source – what’s next? After a week of disappointing price action, the largest cryptocurrency is still stuck in the low $30,000s. With inflation troubling traditional markets and the summer months traditionally favorable for bulls, there may still be reason to celebrate. But with bitcoin, anything can happen, and surprises can go either way. Cointelegraph Markets looks at five factors to consider when considering where BTC/USD might move next.
Inflation disturbs macroeconomic sentiment
Today is a quiet day for equities and commodities due to holidays in the US, UK and other Western countries. However, Asian markets are mostly stable as traders prepare for the start of the traditionally slow summer period. However, when you zoom out, the image becomes much less stable. The reason, according to the mainstream media, is inflation. In the context of an international recovery after the Coronavirus, fuelled by huge amounts of central bank liquidity, the long-term consequences of recovery movements around the world have long been a concern. Some signs are already there, like. B. an increase in production costs which may not be passed on in full. Policymakers are determined to accept higher inflation and greater inflation volatility, and if that happens, inflation will rise structurally, Mixo Das, an equity strategist at JPMorgan Asia, told Bloomberg. I don’t think the price is fixed yet.Annotated balance sheet of the Federal Reserve. Source: PlanB/ Twitter Inflation is inherently the opposite of the Bitcoin norm, as the cryptocurrency has a fixed supply and a falling issue curve that cannot be manipulated. Thus, demand from institutions and individuals holding large amounts of cash should continue to grow in line with inflation, which central banks are increasingly allowing to reach high levels. In a debate about Bitcoin’s energy supply at the beginning of the month, Cyphedean Ammus, author of The Bitcoin Standard, said that about 10% of the world’s wealth was destroyed by inflation each year.
Weak hands have no choice but to sell.
This Monday, the picture is a bit bleak for bitcoin holders, as the weekend brought no signs of a price recovery. At the time of writing, BTC/USD is below $36,000 and is slowly drifting lower after hitting local highs of $41,000 last week. These highs came shortly after a retest of the $30,000 support level, which allowed bitcoin to climb back up to $31,000 and restore the familiar trading corridor it has been in since its capitulation in early May. Depending on who you ask, this situation is either a golden opportunity for accumulation or a nightmare – and the distribution seems to be in line with market experience. According to new data from blockchain monitoring resource Glassnode, at current levels, old holders are adding to their BTC holdings while new buyers continue to sell to them. This classic shift from weak to strong hands is not new, but it is accelerating. Miners also began buying again, reversing the brief sell-off that accompanied the initial drop to $30,000. Annotated chart of bitcoin accumulation against BTC/USD. Source: Glasnode/Twitter This spreadsheet is insane! responded popular Twitter user Lark Davis, underscoring the excitement of long-time marketers. Miners and long-term owners accumulate, only short-term owners sell. There is nothing new under the sun! Bitcoin’s weekly relative strength index (RSI), a key metric used to determine overbought and oversold situations, also surrounds lows surpassed only by the March 2020 crash and the December 2018 capitulation at $3,100.
Average key prices give bulls a headache
In terms of a bull or bear market, there are lines in the sand for traders that bitcoin must adhere to in order to retain the bull market crown. In its latest market update, the Decentrader trading suite highlighted the 200-day moving average (DMA) and the 20-week moving average (WMA) as important levels to keep an eye on. The 200 DMA is currently just above $40,000 – the point where BTC/USD took a hit last week – while the 20 WMA is higher at $49,000. If bitcoin finds enough demand in the low 30s, WMA 20 will serve as resistance, Dekentrader summarizes. On the downside, the $20 low or the 78.6% retracement would likely be a target. That is why the price action in the coming week is particularly important. The idea that bitcoin could return to its 2017 high of $20,000 is unpopular with many, including PlanB, makers of stock-flow pricing (S2F) models. He acknowledges that his models are still being tested by price fluctuations, but thinks another capitulation at $20,000 is unlikely. Of course I disagree, S2F and on-chain show much higher prices ($100-288K). Time will tell, he said in a Twitter chat last week. He added that the selling price of bitcoin – the BTC/USD calculation is based on the price at which each coin last moved – is now $23,000. In 2013 and 2017, the sales price increased by an order of magnitude, and this year there is no repeat. At $23,000, we still have room left, IMO, he noted, accompanied by a chart showing the sale price versus the 200 WMA. Realized price of bitcoin vs. BTC/USD vs. months prior to the halving events. Source: PlanB/ Twitter
The worst May ever?
Is this the worst May ever? In terms of monthly profits for bitcoiners, this is indeed what seems to be happening. On the last day of May 2021, sentiment may not be very positive as the monthly loss for hawkers is close to 40%. By comparison, May is usually a profitable month for BTC/USD – in 2017 and 2019, for example, the pair gained more than 50% in May. 2018 was exceptional with a 19% loss, but even those numbers pale in comparison to this year. Currently, May 2021 is the worst month since 2013 for both the first and second quarters. Percentage of monthly return in bitcoins. Source: Bybt.com. Yet pessimism and gloom are far from ubiquitous. Outside of bitcoin, altcoins markets are showing signs of life, led by the continued rise of XRP, which rose 13% on the day. As traders note, volumes for Ether (ETH), the largest altcoin, are particularly promising and contrast with the behavior of the bear market, which tends to be light in trading. We shouldn’t worry too much about BTC weakening, as it could follow the stronger alt/usd pairs or continue a sideways/downward move if alts go up, trader Kipto Ed concluded.The crypto industry is a hot spot for innovations that will grow the world of digital currency. In this article I’ll take a look at the latest developments that we’re going to see in the next 6 to 12 months.. Read more about bitcoin breakout and let us know what you think.
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