Weekly Crypto Recap with NewsCrypto
Welcome back Weekly Recap readers!
In the grand university of cryptocurrency, we're always on the hunt for that A+ trading insight. And guess what?
We might have just found it! Join us in today’s edition as we dissect the ultimate buy signal for Bitcoin.
Ready for class? Let's dive into today's lesson!
What's on the menu today?
1. Breaking Crypto News
2. BTC TA Analysis
3. Dollar On a Brink Of Collapse?
· Between Nov. 2021 and May 2023, the proportion of Turkish adults who invested in cryptocurrencies grew from 40% to 52%!
· Circle has announced a new partnership with Mercado Pago, Mercado Libre’s digital payments wallet, to bring the USDC stablecoin to its Chilean customers.
· Arkham reveals that Grayscale’s ether stash is spread across 500 distinct addresses and is worth ≈$5 BILLION!
· Sales of non-fungible tokens (NFTs) have taken another hit, declining over 10% from the previous week.
· Robinhood is going to buy back the $605.7 million stake purchased by FTX.
Do you want to read more about each piece of news?
Check out the News section on our educational platform here
Bitcoin Ta Analysis
· Crypto Fear and Greed Index update
· Bitcoin Daily Time Frame
Bitcoin pumped at the start of the week following the news of Grayscale winning the lawsuit over SEC. It looked great…
but then it retraced the whole move. This showed us bears were in control.
Bad news especially now that we are in Septem-bear.
Although RSI is trending up it doesn’t give us much confidence in the current support. If there won’t be any bullish news/narrative around BTC we are most likely sweeping the lows of ≈$24.7k.
If this move gets bullishly retraced (opposite of what just happened - bearish retracement) this support level will hold.
What if it doesn’t? Let’s take a look at the weekly chart.
· Bitcoin Weekly Time Frame
Weekly chart looks even worse than the daily one. A huge wick is bearish and just like on the daily chart - it shows bears are or at least were in control.
If the current support doesn’t hold we would fall below weekly 200EMA which is a strong support that would turn into a strong resistance.
Even back in February BTC could break above it in a single move, it had to test it, find new support and then continue higher.
Price targets if Bitcoin starts losing support:
If neither of these can hold sell everything and come back in 2024. Although we don’t think this will happen it can - better be prepared and have a plan in mind than just mindlessly buying and selling based on emotions.
Now let’s take a look at the ultimate buy signal for BTC!👇
· Bitcoin 3-Day Time Frame
Based on the historical price action 3-Day golden cross (50EMA crosses above 200EMA) is the best signal you should be looking for. Yeah, you will miss out on the gains that happen before it but at least you won’t lose much money and will enter only when the real bull market starts!
As you can see after the first 3-Day golden cross BTC went up in price almost 53x! While the second one “only” returned gains of ≈7x.
Are you too late to the party? NO! The 3-Day golden cross haven’t happened yet but it may soon.
Dollar On a Brink Of Collapse?
First up, in the global trade arena, the dollar's been flexing its muscles like a crypto during a bull run, nontheless DXY was on a run of it’s own.
July data showcased its dominance, making it the currency everyone wants to transact in. But switch the lens to its role as a reserve currency, and we spot some glitches in the matrix.
Since 2016, the dollar's been facing some FUD, with nations diversifying their reserves. It's like seeing a once-popular altcoin slowly losing its market cap rank. While the strategy of most is still to DCA and HODL on but once the “token unlocks” (brrr machine going crazy) hit the market it will be a whole different story.
Treasuries and Currency Crash Course
Next, let's talk Treasury Securities - the Bitcoin/OG of the financial world.
Historically, these have been the blue-chip assets everyone wanted to HODL. But now, big players like Japan and China are hitting the “sell” button, signaling a potential shift in the market sentiment. And speaking of market lessons, remember those altcoins that mooned only to crash spectacularly?
That's the story of all fiat currencies. There have been over 750 fiat currencies throught the history and only 180 of them are still in use today. Although it seems like only the strong survive it’s far from the truth - ALL of them fail sooner or later but they just get replaced.
Dollar Debt Dynamics - Bullish Bets and Bearish Binds
As we navigate further, we encounter the vast landscape of dollar-denominated debt.
Estimated between 65 to 100 trillion dollars globally, this debt is both a boon and a bane. It's like a coin with a high circulating supply - it has its advantages but comes with its own set of challenges.
As interest rates rise, the demand for the dollar intensifies. The Federal Reserve, playing its own market strategy, is adding fuel to this demand by hiking rates. While there are long-term bearish signals, like trade agreements and reserve status shifts, the immediate bullish demand for the dollar, driven by this global debt, offers some strong support levels.
Some are making it seem like the BRICS’s gold backed currency would ruin the dollar overnight it’s far from the truth. Dollar would most likely lose it’s market dominance just like it did with the launch or Euro but it won’t vanish from the system for quite a while.
Dollar lost ≈40% of it value post EUR launch
How can you make sure the downfall of fiat won’t affect you?
In our opinion the best option is by storing your money in a form of cryptocurrency. They are volatile but they offer anonymity, fungibility and are easily transferable.
Funniest Meme of the Week