The New Crucial Price of Bitcoin to Start a Bullish Trend Is USD 19,500

Alexander Salazar
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The New Crucial Price of Bitcoin to Start a Bullish Trend Is USD 19,500

In the past, USD 19,500 was a resistance level for the price of the pioneering cryptocurrency, but it is now crucial support. The holders with the highest accumulation volumes of BTC in the market are the whales and the shrimp.

The value of Bitcoin (BTC) has dropped by 10% over the last week, finding a support level at 19,200. Recent bullish momentum has allowed the price of the cryptocurrency to exceed USD 19,500. This new support is crucial as it was a notable resistance level in December 2017 and January 2021.

Bitcoin has shown a decline of 59% since the beginning of 2022 but has accentuated its fall in June. That month turned out to be the worst in the entire history of the cryptocurrency, with a negative return of 40.6%. The following resistance levels might be at USD 19,800 and USD 20,500 after starting at USD 19,500.

The Bitcoin Relative Strength Index (RSI) is trending to the upside and is above 50. This indicator usually coincides with bullish price zones when it rises above that mark.

BTC is trading at around USD 20,250 and has accumulated a 5.9% gain over the last seven days. While its daily trading volume is above USD 19.13 billion, its market capitalization is about USD 385.43 billion, according to CoinGecko.

Holders Drive the Price of Bitcoin above USD 19,000

Analytics firm Glassnode recently highlighted the behavior of three segments of BTC holders. They said that whales (over 1,000 BTC) and shrimp (less than 1 BTC) accumulate while miners sell. That is happening amid the challenging market conditions that Bitcoin has had to face this year.

The graph of the incoming and outgoing flows of exchanges shows the withdrawals of BTC by the whales. It is also possible to see few deposits (sales) by those long-term holders.

The balance of BTC held by the whales has grown from 6.5 million BTC in July 2019 to 8.69 million BTC today. In three years, the volume of Bitcoin controlled by the whales has increased by 40% until representing 45% of the total circulation. Those holders have also added about 140,000 BTC per month to their wallets.

The so-called shrimp, holders controlling less than 1 BTC, have accumulated volumes much lower than the whales. Over the last few months, the shrimp have moved 36,750 BTC per month from exchanges, about a fourth of what the whales have. The accumulation strategy of the shrimp has allowed them to control 1.12 million BTC.

If the buying strategy of the whales and the shrimp holds, the price of Bitcoin might rise above current levels. It could also break above the support at USD 20,000 reached on June 19th.

Bitcoin suffered a considerable loss in the first half of 2022 and is currently trading at around USD 20,216. However, it is only time to see how the price rebounds to previous levels.

By Alexander Salazar

Bitcoin Forecast for July. How has it Behaved Historically?

Audy Castañeda
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Bitcoin Forecast for July. How has it Behaved Historically?

Bitcoin is headed for a scenario similar to the one experienced during the 2016 halving. A growth of BTC in July 2022 seems unlikely.

Below is a Bitcoin forecast for July 2022. Thus, the prospects for the behavior of the cryptocurrency are analyzed, taking into account the potential for movement inherent in the 2020 halving.

Such history shows that July is usually not the best month for Bitcoin (BTC). Over the past 11 years, BTC has shown negative movement dynamics over the indicated time period on 4 occasions.

At the same time, the drop in Bitcoin in June, as a rule, is not critical. The statistics of the movement of BTC in the indicated month in percentage terms are as follows: Fall – 36% and Growth – 64%.

The Bitcoin forecast for July 2022 will not be complete without an analysis of the possibilities of movement of BTC through the prism of the impact of halvings on the behavior of the cryptocurrency. Recall that the last halving was registered in May 2020.

Bitcoin halvings create a shortage of BTC in the market, which, against the background of the growing demand for cryptocurrencies, leads to an increase in its rate. At the same time, the transition of the currency to the phase of positive movement, as a rule, is proceeded by a crypto winter.

To understand what July 2022 might look like for Bitcoin, it needs to be determined what phase BTC is in relative to the halving.

Bitcoin Forecast for July Based on Halving

The last BTC halving was recorded on May 11, 2020. The period from July 1 to July 31, 2022, is the period from 781 to 812 days after the Bitcoin mining rate declined. The beginning of the segment falls on day 233 after BTC reached the all-time high of $68,789 on November 10, 2021.

The 2020 halving was preceded by two others: on November 28, 2012, and July 9, 2016. To find out how Bitcoin may behave in July 2022, you need to study the movement of the currency in the period from 781 to 812 days later of the 2012 and 2016 halvings. Here’s what the basic calculations look like:

Halving of 2012. The period from 781 to 812 days fell in the period from January 18, 2015, to February 18, 2015.

The start of the segment fell on day 409 after Bitcoin reached a local high near $1,100 in late November 2013. After the gap ended, BTC continued to move sideways for several months.

Halving of 2016. The period from 781 to 812 days fell in the period from August 29, 2018, to September 29, 2018.

Bitcoin began a surge of growth, which turned into a bottom. The start of the segment fell on the 258th day after Bitcoin’s December 2017 local high update near the $20,000 level.

Conclusion

It can be assumed that July 2022 is unlikely to be a month for a change in the global trend of Bitcoin. Bitcoin’s projection for July does not exclude a decline to new local lows.

Previously, many analysts and members of the crypto community expressed the possibility of BTC going down to $10,000.

An analysis of Bitcoin’s movements in the period 781 to 812 days after the 2012 and 2016 halvings suggests that by July 2022, the cryptocurrency may be in a sideways move.

By Audy Castaneda

The Bitcoin Whales Resume their Activity since the Beginning of July

Alexander Salazar
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The Bitcoin Whales Resume their Activity since the Beginning of July

The Bitcoin whales transferred 27,878 BTC from unknown wallets to exchanges and 22,649 BTC between crypto marketplaces. Those long-term holders moved 19,559 BTC from the latter platforms to private addresses but did not make any transactions between peers.

The Bitcoin whales have been quite active since the start of the second half of 2022. Those long-term holders have moved at least 70,086 BTC since July 1st. This analysis of the trends of the Bitcoin whales considers the recent events in the cryptocurrency market since the beginning of July.

It is necessary to contextualize that activity to better dig into the status of the whales and the market as a whole. However, this is just a micro approach to one of the many factors that can influence the performance of BTC.

The Activity of the Bitcoin Whales since the Start of July

After monitoring the whales, it is possible to determine they have moved over 70,000 BTC since the beginning of July. However, the predominant trend in their activity has been the introduction of liquidity into the market.

Since the first day of the month, the Bitcoin whales have transferred 27,878 BTC from unknown wallets to exchanges. That represents 39.64% of the total moved in the given period.

The second-highest trend was the transfer between exchanges, as the whales transferred 22,649 BTC, representing 32.31% of the total analyzed.

Accumulation was the third-highest trend, as 19,559 BTC went from exchanges to unknown wallets, equivalent to 27.90% of the total analyzed. Finally, those long-term holders did not make any transactions between peers since the beginning of July.

The Current Situation of the Pioneering Cryptocurrency in the Market

The price of BTC dropped below USD 19,000 on June 30th after the US Securities and Exchange Commission (SEC) rejected two spot Bitcoin ETFs. There was also a rebuke for troubled cryptocurrency hedge fund Three Arrows Capital and the latest dismal economic indicators.

While the trading of other cryptocurrencies has been flat, the price of Bitcoin maintains its new support above USD 19,000. Although the value of BTC has recovered a bit afterward, it is still a tough week for the pioneering cryptocurrency.

During this crisis, it is notable that the whales seem to accumulate their tokens, waiting for at least a rally or stabilization. Those who advocate using Bitcoin as a store of value consider that it will increase its price in the long term.

BTC is trading at around USD 20,288 and has accumulated a 6.1% gain over the last seven days. While its daily trading volume is above USD 19.13 billion, its market capitalization is about USD 385.43 billion, according to CoinGecko.

It is recommendable to monitor the behavior of the market, external factors, and the movements of the Bitcoin whales. That would allow having an overall perspective of the situation of the price of the cryptocurrency. Researching before investing in any asset is always a good idea to reduce the possibility of losing money.

By Alexander Salazar

Is Self-Sovereignty the Only Way for DeFi?

Audy Castañeda
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Is Self-Sovereignty the Only Way for DeFi?

It is important to look beyond the promises of “high returns” and “convenient user experience” and focus on whether your crypto assets are at risk in the first place.

Access to decentralized finance should be possible without central intermediaries. Unfortunately, most people are only now realizing how many of these entities exist and the damage they can cause to the broader ecosystem. This year and beyond must be about self-sovereignty before things get out of hand.

Rewards Have No Value if Assets Are Unsafe

It is not uncommon for companies in the crypto and Blockchain space to advertise themselves with words like “decentralization” and “user control” without adhering to these standards. Just as most exchanges are centralized and custodial, so are a significant number of decentralized financial protocols. This may seem surprising given that the term “decentralized” comes by default in DeFi. The fact that a project uses smart contracts does not mean that there are no people capable of pulling the strings.

This has become even more apparent in DeFi in recent weeks. All of these “massive” platforms suddenly encountered problems almost simultaneously due to falling cryptocurrency prices and accelerated this process with their own glitches. It is further proof of how centralized companies want to control user funds and use them as they please with little or no transparency. Also, users who provide these funds in search of rewards will not be able to receive their rewards if operations “have to be paused”.

Notable examples include the Celsius and BlockFi cryptocurrency trading platforms, which together account for more than $5 billion in user assets. They have disabled deposits, withdrawals, transactions and other activities involving customer funds. Additionally, Celsius suspended services weeks ago and does not yet have an ETA to resume services. Such behavior is unacceptable and underscores the need for users to defend themselves and take control through self-sovereignty.

To make matters worse, crypto lender Voyager Digital is also ceasing operations. Like the other two providers, Voyager took risks with client funds to offer high but unsustainable returns. The investment in Three Arrows Capital and other companies has not paid off, but the end user will pay the price for this mismanagement. True ownership can only exist when the user is the only one who owns the private key, which is what DeFi is supposed to be about.

Self-sovereignty a Must in Crypto

While the examples above explain the current situation, these types of developments are not new in the land of cryptocurrencies. Centralized exchanges have held customer funds, hostage, numerous times over the past decade, and as a result, users have migrated to decentralized exchanges and self-governance. For whatever reason, when decentralized finance came along, most capitulated and decided to relinquish this invaluable user control again.

Achieving self-sovereignty in DeFi is not an impossible task. Dozens of projects exist or are under development to facilitate this approach. What is interesting is how emerging self-governance solutions are based on Bitcoin.

Like Portal, projects like Gamma, Zest, GoSats, Money on Chain, and Sovryn are built on the Bitcoin Blockchain. They do this through Stacks or Rootstock, Bitcoin smart contracts, and EVM-compatible ecosystems.

To sum up, users should think twice before giving up control of their funds to centralized players, especially when they do not have their best interests in mind. Decentralized finance only requires peer-to-peer interaction, with no people pausing to prevent users from doing something. It is best to start own self-sovereignty journey today and remove funds from any platform that does not meet this requirement before it is too late.

By Audy Castaneda

The Entity in Charge of Issuing the Stablecoin USDC Denied Rumors of a Collapse

Jenson Nunez
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The Entity in Charge of Issuing the Stablecoin USDC Denied Rumors of a Collapse

According to rumors, Circle is losing money on its USD Coin (USDC) product. The CEO denied the rumor even though he says he understands the paranoia.

Jeremy Allaire recently said Circle is enjoying its most solid financial position, and this status will continue to increase its transparency in the future. With those words, the founder and CEO of the company that deals with the stablecoin USD Coin (USDC) sought to end rumors about the company facing a Crashdown.

A Twitter user nicknamed Geralt Davidson revealed a thread a few days ago explaining that Circle is losing money, leading to USDC losing parity with the US dollar. Some of their sources lack verification and would be people linked to what is happening internally in the company.

With little time has passed since the collapse of Terra USD (UST), which was the third-largest stablecoin by market capitalization, rumors like these generate an uncertain scenario among digital asset users.

Allaire said that it is understandable why some users may show concern given the background of hucksters in digital assets. However, he also explained that they have always tried to keep themselves reigning in the highest standards. Allaire said this move has allowed them to work with regulators, top-tier insurance firms, and leading financial entities.

The businessman also explained that USDC got overcollateralized, so there would be no risk of losing its peg to the US dollar. According to the entity website, every USDC digital dollar on the internet gets 100%supported by cash and short-term US Treasury bills, so it is always redeemable for dollars.

The one who goes through a similar road is Tether, the company in charge of the USDT. That company currently supports its stablecoin, among other tools, with commercial paper (relatively high risk). The strategy relies on progressively lessening exposure until reaching zero.

Assets Losing Peg to the Dollar

The unfurl of UST and Luna has followed along with an unexpected decline in the market value of bitcoin, the largest and most popular digital asset. Bitcoin’s value recently fell below $30,000

For his part, Kwon refused to admit defeat even as UST and Luna lost almost all their value. He recently tweeted and carried out many potential fixes that, according to him, would help stabilize the price of Luna and bring UST back into peg with the dollar.

By: Jenson Nuñez

According to Bitfinex, Bitcoin Price Would Rely Upon Fed Policy

Jenson Nunez
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According to Bitfinex, Bitcoin Price Would Rely Upon Fed Policy

The Fed is vital to understanding how future asset works. This argument gets maintained by the Bitfinex exchange, which projects the beginning of a recessive period.

The price of bitcoin (BTC) has been falling this year, in line with the stock market, in the face of the discouraging economic panorama; above all, as inflation increases in the United States of America and the measures of the country’s Federal Reserve to prevent t its effects.

For this reason, Bitfinex explained in its latest report on the current macroeconomic context that Fed policy is now a vital factor for asset price performance.

The report highlights that the comments made by the Fed last week are essential to understanding the future performance of the prices of assets like bitcoin. In this sense, two events stand out.

Last Wednesday, the president of this entity, Jerome Powell, reiterated that the job of politicians is to find price stability. Also, the goal should be to fight against the forces of inflation.

Powell also highlighted that he believed the US economy was fundamentally sound and could withstand currency changes. Powell is afraid of not being able to restore price stability in the North American nation. Therefore, the Fed would be carrying out monetary policy accordingly.

Powell also mentioned that Cleveland Fed President Loretta J. Mester declared that she supports an interest rate hike in July. Precisely 75 points if economic conditions remain unchanged.

Bitcoin Price Could Soon Get Harmed by the Fed

Regarding this situation, the price of bitcoin could face troubles due to the new highlights from the United States of America that might become discouraging news for investors. This situation could happen, for example, before the report in July of a possible increase in inflation or interest rates.

The cryptocurrency exchange highlights that the Fed desires to lessen inflation and will resort to “extreme procedures” to achieve its ultimate goal.

The company also highlighted that US unemployment would increase aggressively during the second half of 2022. According to the FED, this situation would become a real problem.

The entity also expressed that the data suggests that a recession is coming, which would continue to harm the market. “This week, the Atlanta Fed registered its second-quarter GDP estimate to -1%, probably putting US GDP in the negative rates for two quarters in a row.

Although the entity highlights that official GDP information will get released on July 28, a negative number would not immediately mean that a recession is waiting at the doors.

By: Jenson Nuñez

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