Crypto Guides, Knowledge & Insights

Bitcoin clings to $40K support as focus returns to BTC price 'supercycle'

Bitcoin (BTC) fooled no one with its criss-crossing of $40,000 on April 15 as traders remained firmly risk-off on BTC.Bitcoin returns to key 2022 Fib level　　Data from Cointelegraph Markets Pro and TradingView showed BTC/USD bouncing modestly after returning to the $39,500 zone on April 14.　　The move erased an impulse move higher from earlier in the week, underscoring the lack of bullish market momentum despite conspicuous demand for Bitcoin among institutional buyers.　　For popular trader Crypto Ed, there was reason to believe that further downside would soon ensue. Current levels, he warned viewers in his latest YouTube update, did not constitute a suitable ground for a long position.　　“With the upcoming weekend, I would be very careful longing here,” he summarized.　　In the event, BTC/USD reached around $40,400 before reversing to trade at around $40,150 at the time of writing on April 15.　　Markets commentator Miles Johal meanwhile noted that the pair was now interacting with the 0.75 Fibonacci level, this having been a support feature throughout 2022.　　United States financial markets were closed on the day for the Good Friday holiday, sparing crypto traders correlated price moves.Remember the supercycle？　　Elsewhere, excitement was brewing once again over the concept of Bitcoin being in a so-called “supercycle.”　　Related: Bitcoin

2022-04-15Deep Dive

Bitcoin (BTC) Drops to $40,000 After Creating Bearish Engulfing Candlestick

Bitcoin began to increase on April 11 and proceeded to reach a local high of $41,561 on April 13. However, it was rejected and decreased sharply the next day.　　This decrease created a bearish engulfing candlestick (highlighted). This is a type of candlestick pattern in which the entire previous increase is negated within one day. 　　Following the creation of this pattern, further decreases could occur.Bearish technical indicators　　The daily time frame paints a bearish outlook for BTC due to the decreasing MACD and RSI. The former is already below 50 while the latter is negative. These are considered signs of a bearish trend and suggest new lows are likely.　　The six-hour time frame gives some signs of a relief rally. It shows that the RSI is extremely oversold and has begun to move upwards. Its trendline is also still intact. A similar occurrence is visible in the MACD.　　If the BTC price were to make a lower low, it would likely generate a significant bullish divergence as a result.BTC wave count analysis　　The long-term wave count suggests that an eventual upward move toward $50,000 is expected. 　　However, BTC is still correcting in what seems to be an A-B-C structure (red). So, a potential target for

2022-04-15Deep Dive

Report: Russian Oligarchs Can’t Evade Sanctions Due to Crypto Market Liquidity Issues

IN BRIEF　　Crypto markets dont have the liquidity to support Russian sanctions evasion, according to Chainalysis.　　The report outlined three different metrics used to calculate liquidity in crypto markets.　　There is an estimated $800 billion in funds held offshore by sanctioned Russian elites.　　Addressing recent speculation that Russian oligarchs have used cryptocurrency to avoid sanctions, blockchain analysis firm Chainalysis released their latest report which may come at a surprise to many.　　The report, published on Wednesday, relied upon a 2017 study by the National Economic Bureau, which estimated that Russian oligarchs hold nearly $800 billion in offshore funds. The study measured three different metrics for calculating liquidity across crypto markets.　　‘Free Float’ model　　The first model, known as ‘free float,’ measures the total value of a particular crypto asset held by liquid individuals or exchanges for purposes of liquidity in cryptocurrency markets.　　According to the report, Chainalysis found that after looking at 19 different exchanges, it would be near impossible to move that much amount of money without crashing the price of Bitcoin. Specifically, Bitcoins price would decrease by 10% after the sale of $1.5 billion in Bitcoin.　　Combined, the free float of Bitcoin (BTC), Ethereum (ETH), and Tether (USDT), who have the largest market cap by total supply,

2022-04-15Deep Dive

The SEC wants better corporate disclosures about hacks

The U.S. Securities and Exchange Commission (SEC) has proposed new cybersecurity risk management rules for corporations that would require them to be more transparent with customer disclosures.　　The new rules would be implemented as amendments to various forms regarding cybersecurity disclosures and would specifically target investment advisers, investment funds, and business development companies.No more hiding cybersecurity hacks　　Introducing stricter regulation regarding cybersecurity disclosures isnt a new effort from the SEC. In 2018, former SEC Commissioner Robert J. Jackson Jr. said that current disclosure requirements “erred on the side of nondisclosure” and often left investors in the dark when companies experienced hacks or other cybersecurity attacks.　　Currently, company management is only required to keep boards informed about cybersecurity issues, with no obligation to share them with investors or other customers. However, a joint 2021 report showed that in 2020, only 17% of Fortune 100 companies surveyed reported cybersecurity issues to board members annually or quarterly.　　The SEC seems eager to change this as it spent the better part of 2022 introducing various proposals that — if passed — would require public companies to report on cyber attacks and incidents.　　This is the case with the Cybersecurity Risk Management for Investment Advisers, Registered Investment Companies, and Business

2022-04-15Deep Dive

Circle plans to apply for US Bank Charter soon, lauds the OCC for cooperation

Circle Internet Financial Limited has said it is looking to apply for a U.S. bank charter soon, according to a Bloomberg News report.　　The crypto payments company — the issuer of the USDC stablecoin — first talked about a bank charter in 2021 but has yet to file an application with the Office of the Comptroller of the Currency.Circles banking dreams　　Circle CEO Jeremy Allaire revealed that the company is in discussions with regulators over a bank charter and is “making good progress” in that direction.　　While many in the crypto community would welcome Circles ambition, regulators might not outrightly approve such applications due to the nature and level of risks attached to the crypto industry.　　However, Circle seems unfazed by the regulatory issues that may arise from its application; instead, Allaire believes the firm cordial relationship with the regulators will count in its favor.　　Allaire said:　　“They‘ve been doing a lot of work laying the groundwork for how they’re going to supervise crypto, how theyre going to supervise stablecoin issuers specifically.” 　　He added that the Office of the Comptroller of the Currency (OCC) is taking a comprehensive approach toward the matter.　　If approved, Circle will join the other three other federally chartered crypto banks in the

2022-04-15Deep Dive

Tether (USDT) and USDC stablecoins are being launched on the Cardano blockchain

Since the debut of Tether, stablecoins have existed in the cryptocurrency space, but there have been no notable stablecoins in the Cardano ecosystem until recently. Charles Hoskinson, the Cardano founder, and co-founder of Ethereum made an announcement on Twitter, stating that stablecoins are coming to the Cardano blockchain.　　Mr. Hoskinsons tweet was a quote tweet of another tweet posted from the WingRiders Twitter account:　　“Wingriders is one of the most exciting DEXes to launch on Cardano and now they are bringing stablecoins!” the Cardano founder said in his tweet.　　WingRiders, a decentralized exchange (DEX) on Cardano has partnered with the Milkomeda Foundation to introduce two of the most popular stablecoins on the Cardano mainnet blockchain.　　The two protocols will leverage the Milkomeda Bridge sidechain (developed by dcSpark) and its Ethereum Virtual Machine (EVM) to enable the trading of Tether and USDC stablecoins for the first time on Cardano. The stablecoins are intended to function as a safe-haven asset for users during volatile market conditions.How the Tether (USDT) and USDC stablecoins will work on Cardano　　The process works by users moving their Ethereum-based ERC-20 tokens to the Milkomeda sidechain using Metamask and the Nomad bridge (audited by Quantstamp). Milkomeda is a Cardano side chain that uses

2022-04-15Deep Dive

Amazon CEO Andy Jassy says Amazon could sell NFTs in the future

After releasing the first Amazon shareholder letter since taking over Jeff Bezos role as CEO in July of 2021, Andy Jassy says that the international online retail platform Amazon could potentially sell non-fungible tokens in the future.　　“I think its possible down the road on the platform,” Jassy was quoted as saying in an interview with CNBC.　　Jassy adds that he doesn‘t own bitcoin or NFTs and doesn’t think Amazon is close to adding crypto payment options in the future, but he believes crypto will become more significant over time.　　Should Amazon adopt NFTs onto its platform, it would compete with the likes of other online retailers like eBay, which began selling NFTs in May of 2021.　　Despite showing no concrete plans to add digital assets to its e-commerce marketplace in the near future, Amazon appears intent on adding web3 technology into its business model.　　In July of 2021, Amazon opened a position for a digital currency and blockchain product lead to help build out a Web3-focused strategy and product roadmap, The Block previously reported.　　The company still has open positions for blockchain-focused roles such as a senior product manager for the Amazon Web Services (AWS) Blockchain team.　　For more Blockchain news, please download WikiBit- the Global

2022-04-15Deep Dive

Key Levels To Watch After Bitcoin’s Sudden Crash Below $40,000

Bitcoin (BTC) slid back below $40,000 on Monday, extending its losses from the past few days as concerns about rising interest rates weighed on the market.　　The apex cryptocurrency has been trading in a range between $37,500 and $48,000 for the past few weeks, and the recent sell-off pushed it closer to the lower end of that range.　　While some investors remain bullish on Bitcoin‘s long-term prospects, the recent weakness in the market underscores the concern that rising interest rates could hamper Bitcoin’s recovery from last years crash.　　According to Arthur Hayes, the former CEO and co-founder of crypto exchange BitMEX, Bitcoin could drop in the short term to as low as $30,000, given its strong correlation with the Nasdaq 100 Index (NDX).　　Hayes, who said he expects the index to experience a significant 30% to 50% drawdown, called the crypto-equity correlation an “inconvenient truth.”　　“As long as the 10-day correlation stays high, we must stay defensive on our crypto positioning,” Hayes wrote in his latest Medium post.　　Bitcoin is currently in the midst of a pullback, after bulls failed to break through the critical $48,000 resistance level. The cryptocurrency was trading above $40.200 at press time and is down more than 2% over the past

2022-04-14Deep Dive

Bitcoin (BTC) Stalls Above $41,000, RSI and MACD Indicators Extremely Oversold

Bitcoin has been falling since reaching a high of $48,189 on March 28 and reached a local low of $39,200 on April 11. 　　The price rebounded the following day and managed to briefly touch $41,561. 　　The main resistance area is found at $42,250. This target is a horizontal resistance area and the 0.382 Fib retracement resistance level. It also coincides with a descending resistance line that had previously been in place since February.　　BTC initially broke out above this descending resistance on March 21, but failed to validate it as support and broke down below it on April 6. The line is now expected to act as resistance again.Oversold readings　　Technical indicators in the six-hour chart show extremely oversold conditions in both the RSI and MACD. 　　The RSI has not been this oversold since Jan. 24 (green circle). 　　Similarly, the MACD is deep into negative territory and has given a bullish reversal signal (green icon). 　　The previous time both these signals occurred, BTC initiated an upward move with a magnitude of 40%.　　The two-hour chart shows that BTC has already broken out from a short-term ascending parallel channel and validated it as support after (green icon). 　　This is considered a sign of bullish

2022-04-14Deep Dive

75% of Bitcoin wallets are in profit despite bearish market

Available data from Glassnode shows that around 75% of wallets holding Bitcoin (BTC) are in profit despite the value of the flagship asset falling a long way from its ATH to below the $40k mark recently.Bitcoin wallets are in profit　　According to the report, there are currently more wallets in profit when compared to the 2018 bear market — only 50% of the wallets were in profit then. 　　We can see that the current bear market is not as severe as the worst phases of all prior cycles, with just 25% to 30% of the market being at an unrealized loss.　　The analysis also shows that about 60% of transaction volume is in the profit domination. This is the first time it has detected the statistic at such robust levels since December 2021. This high-profit dominance could be a sign of shifting sentiment.　　It also shows that long-term investors are the most likely to make a profit in this market. In this case, long-term Bitcoin holders have held the coin for at least 155 days. Of this group, more than 67.5% have unrealized profits. But only 7.88% of short-term holders who have held for less than 155 days have seen any gains.　　Despite this,

2022-04-14Deep Dive

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