Bitcoin Fear and Green Index Newsletter. Block 1
Welcome to the first issue of Bitcoin Fear and Green Index Newsletter. It’s very much a community-driven effort, and we all hope to see this newsletter grow with quality insight and analytics from the community members. Read till the end to learn how you can participate as well.
Current Bitcoin Fear and Greed
This week’s Technical Analysis
This past weeks chart for BTC was nothing less than a rollercoaster ride of critical tests. If we go back 8 days in time, on the 14th of August, Bitcoin was on the brink of breaking out of the upward sloping resistance line of the ascending wedge pattern around $48,200. After failing to do so, the price retraced back to the upward sloping support line of the pattern, and was supported there for a solid 30 hours before eventually breaking down from the rising wedge pattern completely, also breaking below the 200 day moving average, and retracing down to $44,000 over a 3 day period since the pattern break. Interestingly enough, BTC did not break below $44,000 but instead bounced back from it all the way up to $49,700 . That low of $44,000 would also happen to be in-line with the very critical 21 week moving average. To put things in context, historically, whenever Bitcoin bounced off the 21 week MA, an average of 20% bump in price would entail. So if the current bounce was to be historically congruent, that would see Bitcoins price at $52,400. But before Bitcoin can do that, it would first have to break above what was the support and is now the resistance line of the rising wedge. Even a test of that resistance line would have the Bitcoin price already above $50,000. Now looking at the weekly macro chart, Bitcoin seems to be preparing for a fifth weekly green candle close. Any close above $47,000 would accomplish that. With the weekly close being ~24 hours away as of this writing, and the current price being ~$49,000, the task at hand for Bitcoin doesn't seem so out of reach. However, we have to keep in mind the potential volatility that every Sunday brings to the market. Looking back at this past week, even with all the ebbs and flows of the price, Bitcoin still maintains a strong positive trend with all the major moving averages supporting an upwards momentum.
TA review by @CryptoSulta21
Adoption
In the last months, people think that Bitcoin was dead because it fallen 50% from its ATH. It has fallen because Elon Musk claimed for a green Bitcoin and China Crackdown. But when everything is falling, who buys? Big institutions' clients like JPMorgan, Goldman Sachs and others are asking for Bitcoin but months ago companies like Tesla and MicroStrategy bought Bitcoin for their Balance Sheets. Tesla was accepting Bitcoin as payment but they cancelled. Now, they can accept Bitcoin because it is greener than ever. Also Long Holders have 84% of Total Supply and many of these coins are inactive since a long time ago. This month, we have reached a high from two month ago in BTC Number of Addresses Holding 1+ coins. That means Plebs are getting back and Holding Bitcoin. BTC Number of Active Addresses are increasing since The B Word conference where Elon Musk said Tesla and SpaceX are holding Bitcoin. There was a rumour about Amazon planning to accept Bitcoin for end of the year. There are a lot of Companies like Apple looking for an expert on Blockchain and Digital payments. AMC said they will accept Bitcoin before end of this year. There are a lot of companies submitting a proposal for the first Bitcoin ETF in United States. That is very good. Berkshire Hathaway, Warren Buffett's company bought a bank in Brazil and that bank has made the First Bitcoin ETF in Brazil. Inflation is 5.5% since last year but Gold is 6% down. So, is this a Store of Value? I don't think so. Store of Value is what people think will maintain its value for a long time. Bitcoin is more popular than Gold, Millennials and Z Generation prefer Bitcoin than Gold.
Reminder: Bitcoin will be legal tender in El Salvador in 17 days from today.
Adoption review by @rubio_45
A word from our sponsor:
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How to participate:
We aim to release this newsletter weekly and would love to feature the best contributors in this newsletter. We are looking for contributions across 3 sections:
This week’s chart, TA
This week’s regulation news
Major adoption news. Who’s accepting BTC/crypto?
To participate, follow our Twitter for announcements like this and DM your write up to us. Best content will be featured on the newsletter. ✌️