How to Know Whether It Is the Best Time to Trade Bitcoin

Alexander Salazar
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How to Know Whether It Is the Best Time to Trade Bitcoin

The Bitcoin price has gone from USD 38,500 to USD 42,500 and then back to USD 38,500, but not all investors feel discouraged. Long-term holders have not moved 61.72% of their holdings for more than one year, as they strongly believe in the appreciation of BTC.

The recent geopolitical issues between Russia and Ukraine have affected the cryptocurrency market. However, institutional investors continue to show that they are still confident in the advantages offered by cryptocurrencies.

Clear settlements have led to a drop in the value of crypto assets. Bitcoin has recently gone through high volatility, going from USD 38,500 to USD 42,500 and then to USD 38,500 again. However, the current situation does not discourage all investors, as inflow volumes indicate that many still trust the market.

Cryptocurrency funds recorded USD 127 million in cumulative inflows during the first week of March. That was the highest weekly figure since December, rising significantly higher than the USD 36 million of the previous seven days.

That indicates that investors continue to believe in Bitcoin despite the crash occurring in early December. They have proven on numerous occasions they still put their money in Bitcoin.

How Government News Affects the Price of Bitcoin

The Bitcoin value rebounded as crypto investors seemed to accept the US executive actions. Joe Biden, the US president, recently signed an executive order to assess the risks and benefits of creating a digital dollar.

The government executive order is much less intrusive than the market feared. They primarily address it to federal agencies and other crucial agencies to assess the relevance of cryptocurrencies in the economy.

The legal text requests the Department of Commerce to research how cryptocurrencies could contribute to the economic competitiveness of the United States worldwide. In general, the US government seems to be adopting an approach to adopt cryptocurrencies, not eliminate them.

What Could Happen to Bitcoin

Bitcoin is the crypto asset that has always had the highest weekly inflow. The pioneering cryptocurrency remains ahead of other investments in the market. In that way, it has proven to be one of the most profitable digital asset investments in the last few years.

Long-term Bitcoin holders remain firm and do not sell their coins. The BTC supply percentage chart shows that they have not moved 61.72% of their holdings for over one year. That has been increasing since early 2022 and has accelerated during the war between Russia and Ukraine. That proves that hodlers firmly believe in the appreciation of BTC in the long run.

Ways to Profit from the Volatility of Bitcoin

Regardless of the excellent prospects, the Bitcoin market will remain volatile for some time. A correct investment method could make volatility help traders make profits.

The trading of BTC futures allows traders to go long or short on the cryptocurrency. They can make money from those derivatives as long as their predictions are correct. Meanwhile, spot traders only make profits when the price of Bitcoin rises.

Exchanges could lend traders leverage to help them increase their purchasing power with profits. For example, a trader opens a long position of 100 BTC at USD 38,000 with 100x leverage. If the price rises to USD 42,000, he will earn between USD 42,000 and USD 38,000.

By Alexander Salazar

The New South Korean President Favors the Use of Cryptocurrencies

Alexander Salazar
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The New South Korean President Favors the Use of Cryptocurrencies

Yoon promised to raise the threshold for paying taxes on capital gains from cryptocurrencies to between USD 2,000 and USD 40,000. He stated that they should review unrealistic regulations to take advantage of the potential of the virtual asset market.

Yoon Suk-yeol, from the People’s Power Party, recently won the South Korean election by a narrow margin over Lee Jae-myung, from the Democratic Party. It is relevant to note that the new president of the Asian country favors the use of crypto assets.

The count of 98% of the votes showed that Yoon, from the People’s Power Party, obtained 48.59%, and Lee, from the Democratic Party, obtained 47.79%.

Cryptocurrencies dominated the election discourse in South Korea, with both candidates launching NFTs related to their campaigns.

Yoon directed his pro-crypto campaign strategy at the disaffected youth, who constituted decisive swing votes. He expressed in the National Assembly that this was a victory for the people of South Korea.

The 61-year-old president-elect of South Korea is a lawyer and politician who served as attorney general from 2019 to 2021.

Yoon Suk-Yeol Is in Favor of Crypto Assets

When the presidential campaign of South Korea officially began, the team of Yoon Suk-yeol deployed an Al Yoon. They used that digital avatar to answer the questions that voters asked daily.

Yoon Suk-yeol also released an NFT collection with photos and videos to promote his candidacy among technology experts.

The crypto politician promised to raise the threshold for paying taxes on capital gains from Bitcoin and other cryptocurrencies to between USD 2,000 and USD 40,000.

The President-Elect Talks on the Future of Digital Assets

Yoon might review a 2017 ban on initial coin offerings (ICOs) and reinstate the controversial fundraising mechanism.

During his campaign, Yoon promised to deregulate the cryptocurrency industry in his country. In January, he stated that it was necessary to review unrealistic to take advantage of the potential of the virtual asset market.

He said that they should review regulations that are far from reality. In addition, he stressed that they should switch to a new system of laws to ensure that the virtual asset market does not cause concerns.

Among his plans, Yoon added he wanted to help create blockchain-related unicorns. He noted that those startups could be worth USD 1 billion or more in South Korea.

He also promised to introduce legislation to return profits made through illicit cryptocurrency activities to their victims. That raised hope among those who associate those decentralized assets with money laundering and terrorism financing.

To conclude, Yoon Suk-yeol will take office as the president of South Korea in May. He will serve his term for just five years in one of the largest economies worldwide.

The relevance of cryptocurrencies is becoming increasingly evident, which the politicians of various countries understand. Although many allege that criminals use those assets to carry out illicit activities, several studies have revealed they are more frequent with fiat money.

By Alexander Salazar

As Biden Seeks to Regulate Cryptocurrencies, the Price of ZEC Shows Bullish Signs

Alexander Salazar
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As Biden Seeks to Regulate Cryptocurrencies, the Price of ZEC Shows Bullish Signs

After reaching a support zone near USD 100, the price of Zcash invalidates the medium/long-term bearish intention. The value of ZEC has to break through resistance at USD 167.50 before confirming that the bulls have regained control.

US president Joe Biden recently signed an executive order to assess the risks and opportunities of cryptocurrencies and blockchain technology. Although that caused prices to react quickly, almost all gains of crypto assets vanished. However, the value of ZCash (ZEC) continued to rise against the general trend in the market.

Biden has shown interest in regulating the cryptocurrency ecosystem, which may be causing fear among investors. Many believe that government measures could lead to more censorship and restrictions, which decentralized cryptocurrencies avoid.

In that context, privacy-focused cryptocurrencies like Monero (XMR) and Zcash seem to benefit the most. While BTC has fallen by 4.56% over the last week, ZEC has jumped by 25.6% in the same period.

ZEC is trading at around USD 147.48 and has accumulated a 25.6% gain over the last week. Its daily trading volume is above USD 352.13 million, and its market capitalization is about USD 1.79 billion, according to CoinGecko.

Although Monero is still the leader in the privacy sector, the recent catalyst did not make it react as strongly. XRM is trading at around USD 187.03 and has accumulated a 13.1% over the last week.

Monthly Technical Analysis of the Price of ZEC

After the recent bullish jump in price, the monthly chart of ZEC/USDT shows excellent behavior. The movement of the value of Zcash is a sign that it will likely resume the long-term trend.

If the price of Zcash maintains its current trend, there may be new all-time highs in the short term.

There was a high demand for ZEC at a large support zone near USD 100. After that, it invalidates the downward transition attempt of the mid/long-term trend.

The price is currently crossing the 8-month EMA and 18-month SMA to the upside as it recovers them.

Sellers have shown little strength to reach lower effective lows in this time frame. That indicates that the space for sales is already coming to an end.

The price will have to cross the trend line shown on the monthly chart to confirm new highs.

Weekly Analysis of the Price of Zcash

The weekly Zcash price chart also shows an excellent technical scenario. The breaking through of the nearest resistance at USD 124 has contributed to that.

After several months, the bulls are defying the bearish intention of the value of ZEC. The price maintains the 8-week EMA and 18-week SMA crossed to the downside. Although those indicators work as dynamic resistances, a breakthrough is quite likely in the short term.

Before confirming that the bulls have regained control, the price must reach and breakthrough resistance at USD 167.50. If it does not happen soon, the value of ZEC could fluctuate in a sideways/bearish range for a bit longer time.

By Alexander Salazar

The Bitcoin Whales Move 15,619 BTC, Introducing Liquidity to the Market

Alexander Salazar
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The Bitcoin Whales Move 15,619 BTC, Introducing Liquidity to the Market

The whales moved 11,939 BTC from unknown wallets to exchanges and 2,275 BTC between the latter platforms. However, those long-term holders accumulated 1,405 BTC and made no peer-to-peer transfers.

The Bitcoin whales recently moved 15,619 BTC through 14 transactions, maintaining the predominant weekly trend for 24 hours. The following daily analysis shows the details and the influence that this could have had on the performance of Bitcoin.

Over the last week, the Bitcoin whales have introduced BTC liquidity to the market. The analysis of their activity will allow assessing in detail how those long-term holders have moved the pioneering cryptocurrency.

It is necessary to contextualize 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.

Daily Analysis of the Activity of the Bitcoin Whales

The predominant trend in the activity of the Bitcoin whales was the introduction of liquidity into the market. In that regard, they moved 11,939 BTC from unknown wallets to exchanges, equivalent to 76.44% of the daily total.

The second-highest trend was the transfer between exchanges, as they moved 2,275 BTC between those platforms, representing 14.56% of the daily total.

Accumulation was the third-highest trend, as 1,405 BTC went from exchanges to unknown wallets, equivalent to 9% of the daily total. Finally, the whales did not make transfers between peers.

The Performance of the Pioneering Cryptocurrency over the Last Days

The price of Bitcoin had a pullback, dropping to close to USD 39,000. In that way, it fell from its 8% rise due to the executive order to regulate cryptocurrencies by US President Joe Biden.

The US Federal Reserve (Fed) has usually had the highest impact on cryptocurrency markets like Bitcoin. Concerning the decisions on rates by the European Central Bank (ECB), these have had little or no relevance.

However, an unexpected move by the ECB could cause a drop in the crypto market. The expectations about the tightening by the financial institution markets have recently diminished. People believe that the current war between Russia and Ukraine could lead the European economy to a recession characterized by high inflation.

The excess of expectations could revive fears of a 50 basis point rate hike from the Fed. That could put downward pressure on risky assets like cryptocurrencies. The government agency could raise rates by 25 basis points.

In that context, there has been a higher introduction of liquidity into the market by the whales than before. However, it is relevant to monitor their movements since there is always constant change.

The behavior of the Bitcoin whales contributes to the changes that the cryptocurrency undergoes. For that reason, it is crucial to know how those long-term holders have moved their BTC holdings. In addition, it is relevant to remember that the performance of the pioneering cryptocurrency significantly influences the crypto market in general.

By Alexander Salazar

Willy Woo Walks Out with a Discouraging Forecast for Bitcoin

Jenson Nunez
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Willy Woo Walks Out with a Discouraging Forecast for Bitcoin

The price of bitcoin behaves similarly to stock shares since the parallel conflicts caused by the war appear. Willy Woo believes that the value of the cryptocurrency will go down until there is demand.

Analyst Willy Woo revealed his intention to close his bitcoin bulletin, suggesting a discouraging forecast for the digital asset price. The analyst said that this event is a situation that surprised its more than 10,000 subscribers, who have received its report periodically since 2020.

The analyst highlighted that bitcoin had followed a close correlation with stock shares in his latest edition. Various currencies have received the information with surprise since the tensions between Russia and Ukraine continue.

Since the initiation of the conflict between Russia and Ukraine, the digital asset experienced a quick 10% drop and a recovery that reveals uncertain behaviors in the market. The analyst also highlighted that during situations like this, the signals don’t tell users enough information about future price behavior, at least not in the short term.

A sell-off of BTC and stocks immediately took place when the Russian invasion of Ukraine started. The analyst said this situation happened when the digital currency was structurally bullish because there was buying demand in short periods.

At the end of January, Willy Woo explained how the price of bitcoin could experience a higher peak in the short term. A forecast that goes hand in hand with the economic impact generated by Russia’s unexpected invasion over Ukraine, something that, according to him, is shaking the market because it is an incredible event.

Hodlers and their Low Prices on Bitcoin

Willy Woo highlighted that bitcoin is at an extreme level of downward overselling, even though it has had some accumulation levels in this period. The analyst said that markets usually show resistance against warfares, and the initial sell-off seems complete unless there is a new and unexpected political event.

However, the purchase level seems not enough to boost the Bitcoin price. Therefore, Willy Woo thinks that there will be a discouraging trend for the digital asset in the upcoming weeks until there are signs of demand coming from the market.

Willy Woo Would not Make More Bitcoin Analysis and Predictions Newsletter

With this discouraging prediction, Willy Woo says goodbye to his readers in the newsletter, revealing the sad news that this letter will be his last prediction. Although he told two important updates to his readers, confirming that he still thinks that the digital asset will drop in price in the weeks to come.

The analyst explained that he is ending the bulletin because the maturity of the Bitcoin market makes it difficult to speak about future price action. He said he will always value the integrity of his work above his income.

By: Jenson Nuñez

Relevance of the Correlation between the Bitcoin Price and the Traditional Stock Market

Alexander Salazar
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Relevance of the Correlation between the Bitcoin Price and the Traditional Stock Market

Many analysts see BTC as digital gold, a hedge against inflation and uncertainty. Currently, the price of Bitcoin behaves more like a risk asset than a store of value.

Various factors have impacted the price of Bitcoin (BTC) since its inception, but that is not unique to the cryptocurrency.

As BTC emerged during a global economic crisis in 2008, institutions in the traditional financial, economic and monetary system distrust it.

The correlation of the Bitcoin price with the traditional stock market is relevant to some. They do not know whether cryptocurrency could become another investment vehicle.

Experts See Bitcoin as Digital Gold

Throughout history, people have looked to gold as a store of value in times of crisis. Given its correlation with the stock market, the precious metal allows keeping money safe and even experiencing an appreciation.

For that reason, many experts have seen the pioneering cryptocurrency as digital gold, as it is a hedge against possible economic crises.

Factors that Influence the Price of BTC

Since the unchanging scarcity of Bitcoin is one of its crucial characteristics, the supply and demand law allows understanding its price fluctuations. Contrary to fiat money, everyone knows that the supply of the cryptocurrency has a cap of 21 million units.

The increase in demand for Bitcoin, whose supply is decreasing, generates upward pressure on its price. For that reason, the cryptocurrency community sees institutional adoption as a bullish sign.

The supply and demand law works for both the rise and the fall of the price, as a selling pressure will cause a bearish trend.

Bitcoin derives much of its value from limited supply and growing demand during heightened inflation and uncertainty. However, the cryptocurrency differs from other assets because of its volatility and the momentum given by news.

Correlation of Bitcoin with the Stock Market

Before the pandemic, a report from the International Monetary Fund (IMF) indicated the low correlation of cryptocurrencies with leading stock market indexes.

When the correlation coefficient is closer to -1, the price of Bitcoin moves in the opposite direction to the stock. However, if it is nearer 1, the value of the former tends to move in the same direction as the latter.

According to the IMF, the correlation coefficient between the movement of Bitcoin and the S&P 500 between 2017 and 2019 was only 0.01. However, the onset of the pandemic in 2020 sparked an increased risk appetite among investors.

Between 2020 and 2021, the correlation between assets was 0.36, as they began to move more in the same direction. In January, Kaiko indicated the highest correlation of Bitcoin with the S&P 500 (0.61) and the Nasdaq (0.58) since July 2020.

Relevance of the Correlation of the Pioneering Cryptocurrency

Bitcoin and the other cryptocurrencies emerged as an alternative to a broken financial system. However, many wonder why the crypto market is in the red.

Currently, there is a situation of uncertainty worldwide due to the inflation of the US dollar. That indicates that governments are the owners of money and can use it as they wish.

Michael Saylor, the CEO of MicroStrategy, explained that cryptocurrencies are not shining because of the conflicting investment profiles active in Bitcoin.

The executive believes that the stock market governs much of the capital invested in Bitcoin. For that reason, investors act in the cryptocurrency market just like they do in the stock market.

Saylor stated that the status quo would disappear at any time, and Bitcoin would serve as a long-term investment.

By Alexander Salazar

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