Bitcoin Continues to Consolidate
Bitcoin has slowly and assuredly consolidated from the lows in $43K last weekend to $50K as of today. Per last weeks prediction bitcoin gradually accelerated out of the dip.
Over the past week, bitcoin continues to be taken off the market. Lending rates continue to be healthy at 3-9%. The contango futures trade is less than it was; so futures trading remains softened. Perhaps most notably, there was a massive wall of orders that occurred between $45-$49K showing strong support in this price level. In terms of prediction, it looks like all things remaining equal, Bitcoin will continue to hover between the $45K-$54K region.
What may change the current consolidation is continued institutional support, beginnings of sovereign wealth funds support, and large nation-state governments entering bitcoin. Another major factor is if the futures market heats up again.
Strong Support
There were ~2M bitcoin that were purchased in the $45K-$49K, which shows there is a strong level of support here.
User Growth and Adoption is continuing parabolically
Bitcoin’s continue to be taken off exchanges and into cold storage
The supply constriction is good for higher prices.
Futures Trading remains Flat
The red circle shows where trades aren’t happening. Should futures volume pick back up to previous levels, we should expect higher prices.
Top Tweets and Graphs
When will we go parabolic?
Where we are compared to previous halving cycles. We still haven’t gone parabolic. Our guess is that when a major nation comes out saying they will purchase bitcoin, then we’ll see a parabola.
“Goldman Sachs” (in “Matt Damon” voice)
Institutions are needing to keep up with their clients. Goldman Sachs is reopening their crypto trading desk and may go into custodial services.
More US Stimmy Coming at the World
Expect more devaluation of the US Dollar
Stimulus + 3rd Halving = Major BTC Price Appreciation
More Bitcoiners in Congress
India nearly banned BTC. Not so fast tho.
The bitcoin network is reliably capable of transferring capital
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Closing
As always, have a wonderful week.
Cheers,
Bitcoin Daily