💎 Enjoy Your Exclusive Bitcoin Analytics! (7 August 2024)

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Our Archive of Previous Newsletters

Welcome to Bull Market Bytes!

Your byte of cryptocurrency insight where we need to get a new eyeglass prescription after seeing the market… 😅

Or maybe we are still in denial…

Let’s Explore Today’s Highlights

🥳 Fun Fact: History of Bitcoin’s Massive Drops

📊 Market Breakdown: Crypto Market Loses $700 Billion in Value!

📌 Bull Market Bulletin: Current News & Stories

📚 Trading Strategies: Shooting Star Candlestick Explained

History of Bitcoin’s Massive Drops 🥳

Whenever Bitcoin drops in price substantially, there is always a reaction in the market…

And spoiler alert…it isn’t a good reaction. 😅

Even as I type this…there are investors and traders panic selling Bitcoin from its recent drop in price.

But did you know there have been many drops in Bitcoin’s price? 🤷‍♂️

Well, it’s true! Let’s start with one that happened many moons ago…

In 2012, there was a ponzi scheme known as the Bitcoin Savings and Trust which stole 150,000 Bitcoin!

Granted, that was about $2.2 million at the time but it resulted in Bitcoin going from $16 to $7, a -56.3% drop! 😲

Imagine losing over half of your investment in a couple of days!

How about we take a look at another one!

Between 2013 and 2016, Bitcoin took a hard hit from China banning Bitcoin and Mt. Gox being hacked…

Which still haunts us to this day with the Bitcoin refunds they are doing… 🤦‍♂️

During this period, Bitcoin dropped from $1,163 to $152, a -86.9% drop! 🤯

With all of this said, Bitcoin has dropped numerous times throughout its history and continue to break the all-time high!

At the end of the day, don’t panic, stay calm, and HODL!

…Not financial advice, of course… 😅

Check out other massive Bitcoin drops in history below! 👇

Bitcoin’s History of Massive Drops!

Market Breakdown 📊

Well…what an interesting movement from Bitcoin… 😬

But believe it or not…there are still a lot of bullish features that are taking place in the technical analysis we will cover.

And before I am cancelled for saying that, please let me explain! 😂

In previous newsletters, we have covered Bitcoin’s technical analysis and the bullish formations that are being held…

And to everyone’s surprise, there hasn’t been much change! 🔍

But, before we spoil the good parts, let’s cover our topics within this newsletters’ “market breakdown”!

1. Cryptocurrency Heatmap (7-Day)

2. Technical Analysis Deep Dive

3. What’s Next? 🤷‍♂️

So, without further ado…let’s rock n’ roll! 🎸

Or as the kids say it…let’s get litty!

Cryptocurrency Heatmap (7-Day)

Before diving into the technical analysis, it is always good to take a look at the heatmap to see overall cryptocurrency movement…

However… it isn’t good for the blood pressure. 🤣

So, let’s take a deep breath and take a look at the overall performance for the 7- day period…

Well, good news…

No need to wish for a moon, my blood pressure already did… 😂

So…what exactly is causing this push down in price?

Well, in the last newsletter we slightly covered over the primary reasons…

Let’s take a look at the refresher below.

1. 37,000 Bitcoin Options Expired Recently

   1. Valued at $2.4 Billion! 😮

2. Mt. Gox Reimbursements Taking Place

   1. Up to $3.89 Billion has been Transferred

   2. The Reimbursements Drive Fear of Mass Selling

But the one that is should be heavily focused on is the one below. 👇

1. US Unemployment is up to 4.3%

   1. US GDP is $28.78 Billion (Causes Much Sway in Prices)

With the United States accounting for 15.56% of the world’s GDP (Gross Domestic Product) …

A potential economic recession is never a good thing to hear… 😬

Now, before we sell everything we have and panic, let’s take a look at the actual movement in the market…

You may be surprised from what you see… 😄

But before we dive into that…a word from our sponsor!

Thank you to Betterment for sponsoring today’s newsletter!

Technical Analysis Deep Dive

For the past few newsletters, we have placed high emphasis on the weekly Bitcoin-United States Dollar chart.

Why this one, you may ask? 🤷‍♂️

Because when viewing the chart for the long haul, we need a longer timeframe…

On the flip side, if someone were day trading, they would look at the minute or hourly candlesticks.

🧠 Keep in mind! The lines drawn in the chart below have not been moved since they were originally featured in a past newsletter…

Which was about 2 weeks ago…

In doing so, you are going to see how these lines are actually used to show points that many traders and investors follow…

Unlike some traders that draw so many lines that you can’t actually see the candlesticks anymore… 😅

Now, let’s take a look below and see what is going on!

So, the two formations that we see within the chart below are…

Well, believe it or not… bullish!

Those two formations are the:

1. Ascending triangle outlined in gold.

2. Bullish pennant outlined in blue.

Now, you may be asking, what about the red line that is outside of the triangle on the current candlestick? 🤔

Great question, and quite honestly, that red line dipping below adds to the bullish pressure in that timeframe.

The reason we say that…look how far down the price went in that candlestick and it bounced back up to the gold line.

This shows us that it is holding the formation, and the buying pressure is very strong.

So, our bullish factors are:

1. The ascending triangle formation holding

2. The bullish pennant formation holding

3. Extreme buying pressure on the current candlestick

And for #4, this current candlestick is called a hammer…

Being that it looks like a hammer, I suppose… 😄

Let’s take a look below and see how this hammer candlestick can be beneficial for Bitcoin’s future movement…

So, this candlestick is the opposite of what was in this newsletter’s educational segment which is the shooting star candlestick.

The primary for the hammer candlestick pattern is that it marks the reversal from bearish movement to bullish.

The reason that it does that is the extreme buying pressure in the candlestick along with the continuation of the pressure.

Now, if we take a look back at the chart that we have above along with the image above showing how the chart reacts to the hammer candlestick…

We will see that a bullish continuation is very possible!

What’s Next?

As shown within Bitcoin’s chart analysis, we see that bullish pressure is still present.

With that said, is anyone enjoying this dip? I highly doubt it…

However, the market will always move up and down and sometimes we have to deal with overexaggerated downward movement. 📉

But that also means that we need to anticipate overexaggerated upward movement! 💰

🧠 Don’t forget! Don’t immediately jump on the “doom train”. Cryptocurrency is stressful enough as it is, always look for the positives. 😎

Bull Market Bulletin 📌

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Bullish Bitcoin Futures Bets Lose $200 Million! As we all know, the market is taking somewhat of a tumble recently…to say the least. 😅 With the market, there is going to be those that predict Bitcoin to move up in price and of course those that predict the opposite. The market is ultimately the exchange of wealth between these two groups.

Now, I will say, it is interesting how the market is pushing down heavily as $200 million is lost in the past 24 hours by those that had bullish future bets. The number of traders that were liquidated within the past 24 hours were 97,000! 😮 It is easy to scream “market manipulation”, but is that far-fetched?

Bitcoin “Whales” are Doubling Down! When the market goes down, some people will panic and sell everything in the blink of an eye. 😬 Others will see it as a buying opportunity and go on a spending spree! As we are seeing with this, the wallets that are holding between 1,000 and 10,000 Bitcoin have actually increased their holdings! 😎

Now, on the other hand, the wallets that have less than 1 Bitcoin are cashing out! So, let’s think about this…the wallets that are already holding $56 million to $560 million are buying more…so like we say, we need to follow where the money is going. These big players know something that others may not, and we need to keep that in mind. 🧠

Private Investors Predict Crypto Investment Surge. Now matter if the market is going up or down…it ultimately depends on where the money is going or projected to go. According to a survey by law firm Barnes & Thornburg, 59% of United States private investors are more likely to invest in crypto funds over the next 12 months. 👀

A similar survey revealed that 84% of participants believe that the number of private investors in cryptocurrency will rise over the next 12 months. This survey consisted of 138 limited partners, general partners, and service providers within high prestige areas such as investment banking firms. So, the question is…does it actually sound like we should be panicking? 🤔

White Hat Hacker Returns $10 Million! This is a very interesting story to say the least. 😅 So, here we go! Ronin Network, a leader in the gaming blockchain sector, experienced a major security breach. This exploit resulted in losing $9.8 million in Ethereum! 🤯 Now, for the interesting part…White Hat hackers are ethical hackers that exploit vulnerabilities to exposure the security flaws, fix them, and then return the stolen assets!

Ronin Network confirmed that they have received the Ethereum back from the White Hat hacker and will be sending his $500,000 to the ethical hacker for finding the bug in their security system! Sounds like I need to switch career paths! 🤣

Shooting Star Candlestick 📚

Welcome, welcome! Class in now back in session for another educational segment! 🎉

Last newsletter, we covered the morning doji star candlestick formation. If you missed it, check it out here!

For today, we will be covering the Shooting Star Candlestick! 🌠

So, grab your pen, paper, and thinking caps as we dive into this candlestick type and the secrets that it holds. 🤫

Alright, what exactly is a shooting star candlestick? 🤔

This type of candlestick shows us when there is a change in pressure from bullish to bearish.

So, we can get a better understanding of the candlestick, we will take a look below and cover:

1. The Open and The Close

2. The Wick

3. The Overall Formation

The Open and The Close

When taking a look at the candlesticks above, we have both a green and a red one…obviously… 😂

The primary difference between the two is where the price begins and where it ends.

A candlestick can depict any length of time…minutes, hours, days, months, etc…for this, we will assume it is a minute candlestick.

For the green candlestick, the open is below the close, because there is an increase is price from the open to the close. 📈

Now, the opposite, the red candlestick has the close below the open. That means the price started higher and ended lower. 📉

The Wick

So, if we have the open and the close so close together at the bottom, what exactly is the wick? 🤷‍♂️

For the candlesticks above, they capture a full minute. Just because the price opened and closed close together…

That doesn’t mean that there wasn’t any other price movement that occurred within that minute. 😮

Let’s take the green candlestick for example…

The price opened at the bottom, then it skyrocketed to the top of the wick, and then it came back down to the close price at the bottom.

The wick is ultimately showing that price movement did occur, even though it may be outside of the open and close. 📊

The Overall Formation

As stated above, the shooting star candlestick shows us when there is a reversal taking place from bullish to bearish…

Therefore, this candlestick initiates a downward trend.

Let’s take a look below to show how this candlestick initiates that trend. 👀

As we can see, there is a bullish trend that is taking place up until the shooting star candlestick.

Once that candlestick takes place and initiates the downward trend, then we have a bearish reversal.

In trading, the shooting star candlestick is where long traders are taking their profits and shortly afterwards…

Short sellers are entering their positions in preparation for the downward trend. 📉

For the reason of why this candlestick formation takes place, it is for a substantial buying pressure that initiates it.

For example: if a stock is nearing the daily high, then there will be a rush of buying pressure, especially if the stock is up on the day… 🚀

The same goes for cryptocurrency, even though there technically isn’t a daily high but more of a 24-hour high…

Cryptocurrency doesn’t have set market hours, so, yeah… 😅

Either way, take a look below and see the shooting star candlestick in action!

🧠 Remember! The shooting star candlestick is key to confirming the reversal. Don’t get into a trade until there is an indicator showing how the market is going to move next! 😎

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