Bitcoin has seen some gains over the past few weeks, but its price remains below the expectations of traders and investors. The price of the first crypto on the market had increased by almost 3% in the last seven days. It is currently trading above the $17,000 mark, towards $17,300, with a market capitalization of $362 billion.
Around the world, in the United States, there are fears of an acceleration of inflation. China is starting to ease its Covid-19 restrictions in some major cities, raising hopes for renewed economic growth.
News in brief: Bitcoin, Ehereum, the top 10 and the economy
- According to data from CoinMarketCap bitcoin is up 6.73% in the last 7 days and is trading towards $17,300. ETH has gained 10% in the last 7 days and is trading around $1300.
- Dogecoin rose 11% in a week to settle at $0.1055. Polygon gained 13% and is trading around USD 0.932. Polkadot and the Shiba Inu memecoin increased by 7% and 9% respectively.
- The total capitalization of the cryptocurrency market increased by 1.3% to $858 billion, while the trading volume decreased by 1.8% to $30.7 billion.
- US stocks had a mixed day last Friday. The S&P 500 index fell 0.1% and the Nasdaq 0.2%, while the Dow Jones index rose 0.1%.
- US Federal Reserve Chairman Jerome Powell said last week that the central bank could begin to moderate the pace of interest rate hikes. The Fed is expected to raise rates by 50 basis points at its December 13-14 meeting, from 75 basis points at the previous four meetings.
- The Stars Could Align for Investors, with Another Bullish Rally Likely in Bitcoin. Dan Lim, author and analyst at CryptoQuant, recently published a to analyze which would suggest a potential bottom of the market for BTC.
Finally the bottom for Bitcoin?
During the year, the ratio between market value and realized value (VMVR) of BTC remained below 1 for more than 170 days. In 2018, it remained below 1 for 134 days, after which a trend reversal occurred. Therefore, the possibility of a similar episode occurring is quite high. This is good news for investors who want to return to this market and buy Bitcoin at a good price.
Dan also published another analysis, which shows that the model failed “hash ribbon“.
For information, this indicator was invented by Charles Edwards in 2019. It aims to identify periods when Bitcoin miners in degree of capitalization. The assumption is that when miners give up, it gives strong buy a token for investors.
According to the analysis and for the first time, the dead cross (sale sign) appears after a golden cross (buy signal) without any real price increase. We are seeing a failure of this model.
The hash rate of Swimming F2, one of the largest mining pools in the world, has seen a significant drop due to the fall of FTX. Due to this widespread “severe” the price of bitcoin fell close to $16,000. Struggling in recent weeks, bitcoin miners are said to have deficits of 10,000 BTC by December 1 this year.
Bullish year end for BTC?
The price of Bitcoin is currently between $15,800 and $17,200. The Moving Average Convergence and Divergence (MACD) indicates that BTC may soon break this range to the upside.
the Cash Flow Index (money flow index in French) also increased slightly, increasing the chance of a bullish range breakout. Something to please the most impatient on the market.
According to data from CryptoQuant and Glassnode, exchanges’ BTC reserves have also decreased. This is a good point, as it suggests reduced sales pressure of these. On the other hand, BTC trading volume only reached a two-year low at $260,626,928.14.
📉 #Bitcoin $BTC Transaction Volume (adjusted for change) (7d MA) reached a 2-year low of $260,626,928.14
The previous 2 year low of $260,877,337.98 was observed on 30 November 2022
View metric: https://t.co/45xSLmd4IG pic.twitter.com/dCEoATnplq
— glassnode alerts (@glassnodealerts) December 4, 2022
To continue the theme, find our article on the future of Bitcoin: