Bitcoin Fear and Green Index Newsletter. Block 3
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 - 73 - Greed
This week’s Technical Analysis
After surpassing $50,000 14 days ago, Bitcoin did not hesitate to break another remarkable milestone this past week. Dangerous zones were met, bearish patterns were challenged and many battles were fought, but with the help of an old friend Bitcoin managed to come out on top. Now before we get to the gist of it all, let's take a trip down memory lane and recap what exactly happened this past week.
On Sunday the 29th of August, Bitcoin (at $49,620) was less than $400 away from breaking the $50,000 mark once again in an attempt to recapture and break the local high of $50,500. However, Bitcoin fell short and got rejected $3,120 all the way down to $46,500. In doing that, Bitcoin would break and close 2 daily candles below the significant 21 day simple moving average. Holding this moving average is key to maintaining a positive trend on the short term. Interestingly enough, not all hope was lost for Bitcoin as those very same 2 daily candle closes were still above the 21 day exponential moving average. To those unfamiliar with the exponential moving average, it's very similar to the simple moving average with the key difference being that it puts more weight on recent changes in price rather than adding up and averaging a set of days equally. This means that the 21 day EMA was essentially the last hope for Bitcoin on the short term, as breaking below it would mean an almost certain drop in price and an often reversal in trend.
As the Bitcoin price was facing an exceptionally difficult challenge in being sandwiched between the 21 SMA and 21 EMA, Ethereum on the other hand, had a different plan for the market. On the 31st of August ETH would break out of its ascending triangle to reach a target of $3,470. And with no signs of slowing down on the 1st of September, it would take off to the highs of $3,840 and drag the entire market with it. In doing so, Ethereum would give Bitcoin the opportunity to re-enter the $50,000 zone and to challenge the high of $50,500 once again. If Bitcoin was to challenge this high but fail to break it, that would validate a greatly bearish double top pattern in which the price target would have been near and potentially below the $40,000 mark. However, on the 3rd of September, Bitcoin would display tremendous strength by breaking the high of $50,500 and planting a new flag at the $51,000 mark.
Exceedingly demanding challenges were faced this past week, but with the combined explosive nature of Ethereum and strength of Bitcoin, all challenges were met with great resistance and a refusal to back down.
TA review by @CryptoSulta21
Bitcoin Adoption
Another week another free, open wallet. This week in Bitcoin adoption, not only is El Salvador officially adopting Bitcoin in the coming days but on September 2nd, congress also approved of a $150 Million fund for Bitcoin integration as legal tender! This includes sending $30 worth of Bitcoin to each citizen using the Chivo wallet, and hundreds of Chivo and Bitcoin ATMs being implemented all across El Salvador. A total of 64 out of 78 Salvadoran lawmakers have supported the launch of a $150 million bitcoin fund that would facilitate a smooth official integration of Bitcoin into the country’s processes from September 7, 2021.
As Bitcoin settles in at the $50k mark, Twitter has released news of a new tipping feature that would integrate tipping in Bitcoin! The latest Twitter iOS beta includes lines of code that could see Bitcoin become a part of the “Tip Jar.” If the reports of Bitcoin tipping are true, then BTC will be added alongside Cash App, PayPal, and Venmo as acceptable payment options on the Tip Jar. As part of the rollout, Twitter may provide a brief tutorial about Bitcoin and the Lightning Network. According to a portion of the text quoted by MacRumors, the Bitcoin tipping feature will utilize Lightning Network payment gateway Strike to “generate Bitcoin Lightning invoices.”
A Bitcoin tipping feature on Twitter is only the latest in a string of Bitcoin-focused adoption developments for the social media giant and Dorsey himself. Earlier this week, the Twitter and Square chief announced plans to build a decentralized exchange for Bitcoin. In a Friday tweet, Dorsey said that TBD would be focused on building a decentralized exchange for Bitcoin. According to project leader Mike Brock, TBD, a unit of Square, aims to “make it easy to fund a non-custodial wallet anywhere in the world through a platform to build on- and off-ramps into Bitcoin.” The business said it wants the decentralized exchange to be “Bitcoin-native, top to bottom,” as well as completely open-source and permissionless, with “no foundation or governance model that TBD controls.”
This past Tuesday, Genesis Digital Assets, the world's largest digital asset lender, was offered an option from Canaan to purchase 200,000 bitcoin mining rigs. The firm acquired 20,000 rigs from Canaan, with the option to purchase an additional 180,000. Genesis currently accounts for 2.4% of the global bitcoin hashrate, and that portion could increase nearly tenfold by 2023! Chairman and Chief Executive Officer of Canaan, Mr. Nangeng Zhang commented, “Since we entered the long-term partnership with Genesis Digital Assets earlier this year, we have reached several great deals. This order with an option of future large purchases further solidifies our collaborations and reflects both parties’ confidence in the prospect of the cryptocurrency mining industry. All these mutually beneficial deals demonstrate the quality of our products and our endeavour to deliver for clients, despite the overall challenging supply chain condition. We remain diligent in helping miner clients expand their computing power while generating value for our shareholders.”
The very next day on Wednesday of last week, the Belarusian president, urged citizens to mine bitcoin with the country’s excess electricity instead of seeking low-earning jobs abroad. As more counties and countries push forward incentives to welcome miners to their shores, Belarus may end up doing the same, to the benefit of the Eastern European nation’s economy. Belarusians can achieve financial and individual sovereignty with Bitcoin and Bitcoin mining instead of submitting themselves to low-paying farming roles in nations abroad. By capturing the country's abundant energy to power bitcoin mining rigs, they can increase their otherwise low wages. Additionally, they would also save directly in BTC, taking complete control over their money and protecting their families' purchasing power over generations to come.
Wednesday also saw Bitcoin superfan and U.S. SEC Chairman, Gary Gensler, speak to the European Parliament about Bitcoin, noting how the network operates 24 hours a day, seven days a week, and across borders. He said that “this innovation has been and could continue to be a catalyst for change in the fields of finance and money,” and "I think the transformation we're living through right now could be every bit as big as the internet in the 1990s." The chairman's speech to the European Parliament comes just one month after he delivered a speech at the Aspen Security Forum in which he issued new comments that drew a dividing line between Bitcoin and its wide field of imitators. Elsewhere, Gensler issued new remarks that shed light on how the SEC may act on the many exchange-traded fund (ETF) proposals now up for review by the agency, signalling that those based on Bitcoin futures may have the highest chance of approval, which incited the filing of many Bitcoin Futures ETFs, including Galaxy Digital, VanEck, and Invesco.
As we round into next week, Bitcoin has never seemed so bullish on adoption. A whole country is officially adopting Bitcoin and it seems to be the calm before the storm as Bitcoin continues to grow faster than the internet.
Stay safe & stack sats.
Bitcoin Adoption by @CuredSausage
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