Market Update, 20th April 2022
Bitcoin, Baby
So the HODLers like myself are still doing their good thing and keeping BTC in their pockets. The number of Bitcoins flowing onto and being held in exchanges has reached a four-year low, which sounds promising, given the “extreme fear” we’ve been seeing and feeling lately with this catastrophic sideways/downward market that just struggles to push ahead.
Futures Markets and Vital Support Levels
If BTC manages to stay above the $39,600 mark, or thereabouts, we should be good for a nice sweet ride upwards above $40k, and not see the bears take over.
If we’re gonna go a bit deeper into the technical analysis side of things, BTC is testing one of its most significant support levels, which you can see by checking out the 200-day moving average at around $39,583 on the 3-day chart and the 78.6% Fibonacci retracement level at $38,531. Bitcoin has gotta work hard to stay above this level, otherwise we could see some deep corrective behaviour, taking us down to somewhere between $32,800 (gah!) or even as low as $26,800 (say it ain’t so!).
If the King of All Cryptos (or is it the Mother of All Cryptos…making BTC both the King and the Queen? Hmmmm 🤔) can stay above roughly $38,500 as support, we may see a jolly good retest of the 50-day moving average at $43,668. Here’s hoping, right?
According to Binance, Futures trading for the BTC/USDT “remain overly optimistic about the future price action as 71.91% of all accounts are net-long on Bitcoin”. Kaboom. Sounds good to me 🥳
Moving Averages can serve as simple resistance or support levels so, to help you guide your eyes when practicing your charting, add some moving average indicators into your TradingView chart. We like the EMA 200, EMA 50 and EMA 21 day moving averages. Fun times!
To the Mooooon!
And not just any old moon, but the one and only Terra Luna space station! The Luna Foundation Guard (LFG - not be confused with the other LFG…yep, you know the one…😉) purchased a total of US$276 million in BTC, increasing its holdings to 42,406.62 BTC, currently worth about $1.7 billion. And it’s not over yet. Terra Luna plans to back its token LUNA with BTC rather than stable coins (smart move!) so watch out for more mega buys from these space-faring lunatics.
P.S., LUNA was on our Top 10 Cryptos list in 2021, and it's taking a prime spot in 2022 as well.
Wanna know more? Join the QUEENDOM Programme and our infamous Royal Boardroom on Telegram, today. It's the VIP Lounge you've always wanted!
The Whales are Beached As…
Apparently Bitcoin whale transactions have fallen to the lowest point in a decade. "Bitcoin whale transactions (which are single transactions exceeding US$100k), are at the lowest proportion of total BTC volume since August 2012," Santiment noted. How come? You may ask? Apparently all your good retail work and the generally increasing popularity in the crypto market are actually making a dent! Beware though - whales always have to come up for air at some point, and when they do, they always make a big splash!
Who Said What?
Run, Visa, RUN!
Lightning Labs raised US$70M for the development of a new protocol called Taro that enables stablecoins to be sent and received via Bitcoin's Lightning Network (ahhhh, thank you Taproot upgrade, 2021.) “If I were Visa, I’d be scared because there are a lot of people out there that have mobile phones, but now don’t need to tap into the traditional system.”, said Elizabeth Stark, CEO of Lightning Labs. That’s GOLDEN! Wanna know something else that’s pretty darn golden? The fact that the firm themselves believe that Taro will enhance BTC adoption and thus help the unbanked in developing countries to send money using stablecoins - eat that, traditional banking system.
Aunt Cathie
Now, if you know me well enough, you’ll know that I have a celebrity crush on Ark Invest's Cathie Wood and often ask myself, “What would Cathie do?”, so when she announced that Ark had liquidated its PayPal assets because it believes that Block's Cash App will win the race against Paypal's Venmo app due to its organic focus on Bitcoin, I was like, ohhhhh yeahhhhh, thank you Aunt Cathie!
Side note: “Block” is actually the old “Square”, owned by ex-Twitter CEO, Jack Dorsey. He changed the name to accentuate the focus on Blockchain technology and the facilitation of crypto across the app.
The Merge…
All you need to know about Ethereum’s long anticipated Merge (that would bring the Ethereum Network from a costly proof-of-work (PoW) transaction validation to proof-of-stake (PoS) validation) that you don’t already know, is that it’s gonna be delayed. It was meant to happen in June, but now, according to core developer Tim Beiko, it will be “a few months later”. Okay, competition protocols - get to work!