💎 Enjoy Your Exclusive Bitcoin Analytics! (21 August 2024)

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Welcome to Bull Market Bytes!

Your byte of cryptocurrency insight where crypto is as simple as riding a bike…

If you were riding that bike across a lake of fire infested by alligators on the face of the sun… 😂

But don’t worry, we will do this together!

Let’s Explore Today’s Highlights

🧠 Fun Fact: Bitcoin is a Top 10 Asset!

📊 Market Breakdown: Bitcoin’s Movement Decision

📌 Bull Market Bulletin: Current News & Stories

📚 Trading Strategies: Bullish Engulfing Pattern

Bitcoin in the Top 10 🧠

As we all may know, Bitcoin is the #1 cryptocurrency when it comes to overall market cap solely within cryptocurrencies…

But how does it compare to other assets in the world? 🤷‍♂️

Since Bitcoin’s inception in 2009, it has fluctuated in total market and has even reached a high of around $1.4 trillion! 😮

Even though it has pulled back in price since that high in early 2024, it still holds a total market cap over $1.1 trillion!

And with that market cap, Bitcoin is current #10 in global assets! 🤯

There is speculation that Bitcoin could one day replace Gold as the standard…

Which is becoming a more popular opinion. 😎

However, if Bitcoin were to replace Gold it would make sense that its value would equate to where Gold is…

And for that to occur, Bitcoin’s market cap would match or surpass Gold’s market cap which is currently 17.1 trillion! 👀

And now for the finale…

If Bitcoin were to match this market cap, Bitcoin would be priced at around $870,000! 😲

Check out the full list of top assets below! 👇

Bitcoin is a Top 10 Asset!

Market Breakdown 📊

I must say, the anticipation of Bitcoin’s movement is driving me crazy! 😅

Can we just moon already, that downpayment for the Lamborghini and Ferrari isn’t going to happen by itself…

Especially the Bitcoin ice sculpture for my front lawn. 😂

(Sigh)… Alright, let’s take a step back and a deep breath and see what exactly is going on in the market.

Today, we will be covering:

1. Cryptocurrency Heatmap (7-Day)

2. Technical Analytics (Bitcoin Weekly Chart)

3. The Next “Moment of Truth”

4. What is the Next Move? 🤔

So, without further ado, let’s dive into today’s market breakdown! 📊

Cryptocurrency Heatmap (7-Day)

We always recommend starting any overall technical analysis with how the market is doing overall.

From there, you get an idea if we are in a more bullish or bearish state, and more importantly…

If your portfolio is up or down. 😂

Let’s go ahead and take a look below to see how the top cryptocurrencies have been performing over the past 7 days. 👀

At the moment, everything seems to be consolidating as we don’t have any extreme movements…

Wait a second…

Tron is +26.11% on the 7-day heatmap? 👀

Yes, you saw that right…and after doing some digging, it is because there is hype over the “SunPump” platform.

For those that are not familiar, this is a platform for the fair launch and trading of meme coins… 🤦‍♂️

Not saying this is a bad thing…but can we get some hype over world changing events…

Not just world changing events for the world of memes… 🤣

Either way, congratulations to Tron holders…

For the rest of us, consolidation and patience are the key takeaways from this week’s heatmap. 🔑

Alright, now that we have looked at the overall market, let’s take a look exclusively at Bitcoin!

Technical Analytics (Bitcoin Weekly Chart)

One of the primary reasons that we follow Bitcoin closely is not only because it is the number 1 cryptocurrency by market cap…

But because it acts similarly to the S&P 500 in the stock market. 🔍

For those that may not be familiar, the S&P 500 is the weighted market cap for the 500 leading publicly traded companies in the United States.

Why is this important to know? 🤔

Because if the S&P 500 is down, then that shows a majority of the stocks are down.

Bitcoin does something similar because a lot of cryptocurrencies are trading pairs with Bitcoin, which means…

If Bitcoin is down, then that pair is potentially down as well. 😮

Now, with that said, let’s jump into the technical analysis and see what Bitcoin holds for us!

Above are weekly candlesticks showing Bitcoin’s movement.

The most recent candlestick that has formed is holding between the red line and the gold line.

Why is this important to keep an eye on? 🤷‍♂️

Because the candlestick is being squeezed between the two lines and that is going to result in two things…

1. A push below the gold line

2. A push above the red line

Now, with that said, let’s take a “zoomed out” approach to the image above. That will show us that…

If the candlestick pushes below the gold line, we are breaking the ascending triangle formation…

Which shows that we are no longer bullish at this immediate time. 👎

If the candlestick pushes above the red line, then we are maintaining the ascending triangle along with the bullish pennant formation.

Both are bullish formations, and we love bullish! 😁

The Next “Moment of Truth”

With all of that said…we will want to find our next short-term goal that will show us a more immediate direction.

As we were covering above, we are now testing the bullish formations to see if we are going to hold those…

One can only hope, of course! 🙏

Let’s take a look at the image below as it shows us an additional line that we did not see before…

Right beside the current green candlestick, we have a gold vertical line.

This line shows us the exact point where a decision will be made, which is either…

1. We are going to continue upwards 📈

2. We are going to continue downwards 📉

That gold line shows us the date “26 August 2024”.

But we have to keep in mind, these are weekly candlesticks shown above…

So, the timeframe for the pattern’s decision will fall between 26 August 2024 and 1 September 2024. 👀

What is the Next Move? 🤔

Being that the gold line is covering into September of this year, let’s do a quick peek into September’s historical returns…

And it may not be what we want to see. 😬

The reason for looking at the historical returns is because it may give us an idea of projected returns for September this year.

And based on past movement in September, we have:

2018 = -5.58%

2019 = -13.38%

2020 = -7.51%

2021 = -7.03%

2022 = -3.12%

2023 = +3.91%

Well…at least one of the years is green. 😂

The one that sticks out is the year before Bitcoin’s all-time high break that occurred in 2021.

2020 was -7.51%, however, we were green last year in September…

And this year we currently have 5 months that are green out of 8 so far…

Just have to stay positive! 😄

Overall, this upcoming week is very important. Make sure to keep an eye out!

🧠 Don’t forget! Even if a bullish formation is broken, that does not mean another bullish formation can’t form next!

Bull Market Bulletin 📌

Bitcoin is Coming to the iPhone?! In the latest discovering, Apple has said that they will begin letting third-party developers use the iPhone’s payment chip to handle transactions. This is a result of many years of pressure from regulators in Europe for the company to open up the platform. So, what exactly does this mean? 🤷‍♂️

This means that iPhone users will be able to choose a third-party payment application as their system default. That could mean that users could select an app that supports Bitcoin, crypto, or even stablecoin payment options! 🤯

Crypto Fund Fined $150,000 for Illicit Bitcoin Loan Cryptocurrency fund Ikigai Strategic Partners has agreed to pay the National Futures Association (NFA) $150,000 for an allegedly illicit Bitcoin loan. What exactly happened, you may ask… 🤔

In 2022, Ikigai allegedly loaned around $2.5 million in Bitcoin to a cryptocurrency exchange to benefit another fund owned and operated by the same people running Ikigai…You will have to read more about this interesting situation…

Massive US Government Bitcoin Purchase Incoming? Senator Lummis has proposed that the United States government achieve a 5% holding of Bitcoin’s total supply! The US government owns around 1% at the moment, but 5% would mean that they would own around 987,000 Bitcoin which is valued at $57.3 billion! 🤯 Could you imagine that buy order? 🚀

Solana’s Legacy is Fading as the Third ETF… While the Ethereum ETFs were set to launch and even after the launch, there was a lot of hype that Solana was going to be chosen as the third ETF…well, things may have changed… 👀

Bloomberg ETF analyst Eric Balchunas stated that Solana has “a snowball’s chance in hell of approval unless there’s a change in leadership”. Additionally, on the 16th of August, reports emerged that Cboe had removed the 19b-4 filings for two prospective Solana ETFs. So…who will be the third then? 😮

Bullish Engulfing Pattern 📚

Welcome back to today’s educational lesson! As our last newsletter covered the Bearish Engulfing Pattern…

We will be covering the Bullish Engulfing Pattern!

So, what is the main difference between the bullish and bearish engulfing patterns…

Well…one is bullish, and one is bearish…

Alright, that is today’s lesson…thank you for tuning in… 🤣

Just kidding, of course!

With the bullish engulfing pattern, traders will use this as an indicator that the market’s momentum is shifting…

And it is most likely going to be an upward movement! 🚀

Before we get too ahead of ourselves, let’s break down what we will be covering in this segment:

1. How to spot the bullish engulfing pattern

2. How does the bullish engulfing pattern affect movement

3. The bullish engulfing pattern in full motion

How to Spot the Bullish Engulfing Pattern

To begin, let’s take a look at the image below and break down how to spot this specific pattern… 👇

As shown above, the bullish engulfing pattern is named exactly as it should be…

It shows that the bullish candlestick on the right is fully engulfing the bearish candlestick to the left…

And because of this, it is breaking through the resistance (top of the bearish candlestick) to form a reversal.

The bullish engulfing pattern normally occurs after a drawn-out downward momentum, which is fitting…

How exactly is that fitting, you may ask? 🤔

Because the bullish candlestick is massive compared to the bearish candlestick to the left, which means there is massive buying pressure…

And who exactly is causing this massive buying pressure? 🤷‍♂️

How Does the Bullish Engulfing Pattern Affect Movement

Well…let’s take a look at the image below and we will cover who is causing this reversal to take place.

As shown below, there is a long decrease taking place, and at the very bottom the bullish engulfing pattern takes place…

This is taking place because we have traders and investors that are:

1. Short sellers taking profits

2. Long traders averaging cost

3. Day traders entering positions

Let’s briefly cover what we mean with each of these…as long as everyone has some extra time today. 😅

Short Sellers Taking Profits

Short sellers, also known as “shorters”, make money when the asset is decreasing in price…

For them to do that, they must sell the asset first and then buy it back at a lower price…

We will cover this more in depth in a future newsletter. 👍

For them to exit the trade, they buy the asset which contributes to that bullish momentum which is ultimately the bullish engulfing pattern.

Long Traders Averaging Cost

For long term holders or investors, they want to have the lowest average cost for their asset they are holding long-term…

We also call this “buying the dip” … 💰

When the price has decreased as such, they also contribute to that buying pressure.

Day Traders Entering Positions

For traders that make quick trades, they must locate trading formations to enter at a reasonable price for quick profits.

The prolonged dip with reversal is their key to enter the trade, contributing to the buying pressure. 🔑

The Bullish Engulfing Pattern in Full Motion

Now that we have covered the movement, and the variables associated with it…

Let’s take a look at how the bullish engulfing pattern develops and when is recommended to enter the trade.

The bullish engulfing pattern is a pattern that is seen often in assets that are slowing depreciating…

At the end of the day, traders have to take profits and also “buy the dip” as it is our duty as crypto investors! 🤣

Not financial advice, of course…

🧠 Remember! The bullish engulfing pattern can be mistaken for a continued downward trend. Make sure to be patient and wait for the actual price reversal if you are wanting to enter the trade!

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