💎 Enjoy Your Exclusive Bitcoin Analytics! (20 July 2024)

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Our Archive of Previous Newsletters

Welcome to Bull Market Bytes!

Your byte of cryptocurrency insight where we begin to see the light at the end of the tunnel…

The beautiful glow of a spiking green candle! …

Which is always followed up by a spiking red candle… 🤣

Don’t worry, diamond hands! Our time is coming!

Let’s Explore Today’s Highlights

🥳 Fun Fact: The $2M Crypto Kitty NFT

📊 Market Breakdown: Bullish Pressure is Building!

📌 Bull Market Bulletin: Current News & Stories

📚 Trading Strategies: Arbitrage Trading Explained

Fun Fact in Crypto 🥳

Ah, yes…CryptoKitties…the NFT project that took the market by storm in 2017!

They were definitely ahead of their time. You could buy different kittens, use gene stringing to alter them, and even breed them…

Yes…you could breed them to make a new Crypto Kitty NFT. 😂

Either way… they were a NFT sensation and are actually still around today.

In 2017, someone purchase Dragon, one of the CryptoKitty NFTs, for 600 Ethereum, $170,000 at the time of purchase!

That is $2,040,000 at today’s Ethereum value!

As mentioned earlier, they are still around and offer:

1. Cracking Puzzles with other Players

2. CryptoKitty Collections

3. Games in the “KittyVerse”

So, if you want to manifest your inner kitten, there link is below! 🤣

CryptoKitties Official Website

Market Breakdown 📊

It is always a great feeling to see Bitcoin and cryptocurrency as a whole on an upward trend!

The potential reason for this continued upward trend? ‍🤷‍♂️

The spot Ethereum ETFs are expected to launch on the 23rd of July!

The five expected to launch are:

1. Fidelity Ethereum Fund

2. Franklin Ethereum ETF

3. Invesco Galaxy Ethereum ETF

4. VanEck Ethereum ETF

5. 21Shares Core Ethereum ETF

We have been waiting a while for this, and it seems that it will become a reality!

So, which cryptocurrency spot ETF will be third to launch? Let’s save that topic for another day. 😎

For today, we are going to be diving into:

1. 7-Day Cryptocurrency Heatmap

2. Market Analytics

3. Liquidation Map

So, without further ado, let’s do this! 😎

Cryptocurrency Heatmap (7-Day Timeframe)

For our 7-day heatmap, we are still seeing green across the board as we saw during our last newsletter!

…Tron seems to be slightly down, but that’s okay! 😅

The heatmap is a great resource to show us not only performance, but projection.

How exactly does projection tie into this? 🤔

If we see a cryptocurrency on the heatmap that is +500% on the week, chances are there is a pullback that is upcoming.

It doesn’t mean that the cryptocurrency is necessarily doomed to nosedive to $0, but we must remember…

Traders are going to want to take profits sooner or later… 💰

With the market, we want healthy movement…not overexaggerated but also, we don’t want +.1% every week.

Can’t buy the Lamborghini or Pokémon collector cards with that. 🤣

If a crypto has a steady growth every year, people are more prone to invest in it…and heck (pardon my French), maybe a consideration for an ETF…

It’s a long shot, but hey, you have to dream a little. 😂

Market Analytics

With market analytics, drawing lines and such is not only to make the chart pretty and colorful… 🤣

It is to set up a projection of how the market may move and what could be anticipated.

Let’s take a look at the chart below 👀

Does this chart look familiar to anyone?

If it does…it is because you saw it in the last newsletter (if you missed it, check it out here!)

The bull flag and support line that were drawn are the same…

But the green candlestick to the far right shows a continued upward movement as we maintain the bull flag.

In short…we are still holding a bullish trend…

and in shorter…Bitcoin moon soon. 😂

Liquidation Map

For our last topic for this newsletter’s market breakdown, we are going to take a look at the liquidation map!

So, what is this showing us? 🤷‍♂️

For anyone that has heard, “$50 million in shorts have been liquidated”, this is where that information can originate from.

For this liquidation map, we see on the left side is the long liquidation and the right the short liquidation.

In the middle is the current price of Bitcoin.

The vertical orange lines are clusters of either long or short pressure within the Binance exchange.

(Exchanges can vary, but it was selected for the image above).

As of now, we see that the red line on the left side of the image is much higher than the blue-greenish color on the right.

And why is this? 🤔

Because we have more long positions that are being held (overall) than short positions…

And when it comes to trader psychology, that is because more people believe that Bitcoin’s price will increase.

So, when it comes to a news article saying that “$50 million in shorts were liquidated” …

That means the price increased and the positions you see above were surpassed and the short sellers (who want the price to go down) exited their positions.

🧠 Don’t forget! When viewing cryptocurrency, take a look at multiple variables. Just because a chart looks bullish, doesn’t mean that short sellers aren’t stacking up for a major red candle to occur next!

Bull Market Bulletin 📌

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Crypto Exchange Hacked for $230 Million! WazirX, an exchange established in 2018 with over 400,000 users, has experienced a security breach which led to the loss of user funds and over $230 million in withdrawals! The top asset that was stolen was $102 million of $SHIB. (Click here for the full breakdown of stolen assets.)

The hackers have yet to sell the Ethereum that was stolen ($52 million) and currently holds $4.2 million in $FLOKI. Who is behind the hack? There are claims that it is North Korea, but it is currently unknown…as always, time will tell. ⏰

Ethereum Co-Founder Issues Warning against Politicians. Vitalik Buterin issued a warning on Wednesday that choosing a candidate purely based on whether they are “pro-crypto” or not is not the right move. There is a lot of hype right now within the US Presidential race, and a lot of that comes from one side saying that they are going to make crypto great again…not the exact wording… 😂

His claim is that “crypto was born from the cypherpunk movement” …which is absolutely correct. Crypto was developed to give the middle finger (pardon my language) to the banking system and give control to the users. Now that politicians and major banks are becoming more friendly, maybe this should be a red flag…What are your thoughts? 🤷‍♂️

Mt. Gox Repayment Plan on Hold? We should all be aware of the repayment plan from Mt. Gox, but if you aren’t, this is a plan to reimbursement members of the exchange that suffered from the hack around 10 years ago. The reimbursement amounts? Over $9 billion in Bitcoin and $73 million in Bitcoin Cash! 😬

Many users are reporting that they are receiving notifications of “account logins” for their personal accounts with some reporting up to 22 login attempts! There is high suspicion that people are trying to hack into accounts and withdraw any Bitcoin that may have been received to that address. As of now, the portal “is temporarily down for maintenance”. The question is…will the users ever be refunded? 🤔

Trading Platform Agrees to $9 Million Settlement! Robinhood, a very well-known platform within cryptocurrency and stocks, has settled for a settlement due to “unsolicited text messages”. This took place between August 2017 and February 2024, where 827,327 consumers allegedly received text messages within the Washington area code as part of the “referral program” …interesting…

The claim is that this violated the Washington Commercial Electronic Mail Act and the Washington Consumer Protection Act as there were alleged text messages sent without the recipient’s consent. There were 51,000 claims that were ultimately submitted and for those they are expected a payout between…here it comes… $111 and $170… 🤦‍♂️ Well…it’s a tank of gas…

Arbitrage Trading 📚

Welcome back to today’s education lesson! Great to have you!

For today, we are covering over a trading strategy that you may have heard of…but it’s different than other strategies we have covered so far.

As you may have seen from the title… 😂

Today’s lesson is over Arbitrage Trading!

We are going to be covering over…

1. What is Arbitrage Trading?

2. The Steps to Successfully Profit from the Strategy

3. Variables to Keep in Mind

4. Conclusion

What is Arbitrage Trading?

Arbitrage trading is the purchase and sale of the same asset in different markets in order to profit from the asset’s listed price.

This asset could ultimately be cryptocurrency, stocks, anything that can fit this definition and be profited from.

So, how exactly does this take place? 🤔

Well…let’s take a look!

The Steps to Successfully Profit from this Strategy

When it comes to cryptocurrency, you have to be quick because everything is in real-time… (prices are perpetually changing).

For someone wanting to profit from arbitrage trading, the overall steps are…

1. Locate the cryptocurrency that you are wanting to trade.

2. Research the different exchanges and the current going rate for the selected cryptocurrency.

3. Purchase from the exchange with the lowest price.

4. Immediately sell to the exchange with the highest price.

5. Reap the reward of arbitrage trading (results may vary)!

So, let’s take a look at a real in-time example of how the prices different between the markets…

As you see below, there are multiple markets that have Bitcoin listed.

(The pairs may be different, but the price is what we are focusing on) …

Imagine if all of the prices stayed the exact same and someone bought from Binance (#1) at $66,598.88…

Then they turned around and sold the same exact Bitcoin to Upbit (#6) for $67,275.15…

That means within minutes, they profited $676.27!

It sounds like easy money…why doesn’t everyone do this? 🤔

Well…not everyone is aware of this trading strategy…

Also, there are key factors to keep in mind.

Variables to Keep in Mind

Arbitrage trading is all fun and games until someone is stuck with a cryptocurrency for a loss. 😅

Let’s take a look at what to look out for when pursuing this trading strategy…

1. Calculate the potential profit from the trade.

   1. Don’t enter the trade if you are going to make 40 cents… 🤣

2. Consider the change in market prices.

   1. The market prices can change quickly, don’t get stuck with an asset you bought and are wanting to sell.

3. Understand the volatility within the selected exchanges.

   1. If you buy a Bitcoin to re-sell…and you select a market with no volume…it will never sell, no matter the sell price.

4. Fees, fees, fees!

   1. You must also account for transfer fees, trading fees, even fees on the profit that you make…they add up quickly! 😆

Conclusion

Arbitrage trading is a less known trading strategy but does have its perks.

You do not have to do market projections; you already see the prices that are listed on the various exchanges.

You are primarily selecting the ones with the highest and lowest trading offers.

Before attempting this trading style, make sure to do you own research.

As with every trading style, there are obstacles that must be overcome. Best of luck out there!

🧠 Remember! Arbitrage trading is based highly on the on-going prices within the market. If prices are close together, there is less room for this trading strategy which makes it a strategy that may not always be feasible!

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