💎 Enjoy Your Premium Bitcoin Analytics! (6 July 2024)

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Welcome to Bull Market Bytes!

Your byte of cryptocurrency insight where we deliver in-depth market analytics and answer the question of “will Bitcoin go back up?”

Answer: Not “will it go back up” but “when it goes back up.” 😎

🔮 At least that is what we are seeing in our crystal ball… 🤣

Let’s Explore Today’s Highlights

🥳 Fun Fact: Crypto Projects at $1B Valuation

📊 Market Breakdown: Time to HODL or Sell?

📌 Bull Market Bulletin: Current Crypto News

📚 Trading Strategies: Momentum Trading

Fun Fact in Crypto 🥳

The overall cryptocurrency market has become more valuable than ever expected!

It was very rare that someone in 2009 ever though Bitcoin would be where it is today…

Even though many do not want to admit it. 😂

On May 1st, 2013, Bitcoin reached a market cap (overall value) of $1.2 billion!

Then on November 21st, 2017, it reached $100 billion! 🤯

Throughout time, many crypto projects have reached the prestigious $1 billion milestone.

At the time of writing this, there are currently 3 that are valued at over $100 billion (Bitcoin, Ethereum, Tether) …

And 66 projects valued at over $1 billion! 💰

Cryptocurrency Project valuations

Market Breakdown 📊

Well…for the traders that have not experienced price declines like this…don’t worry, it is normal in crypto. 🤣

Cryptocurrency is a very volatile market; it can rocket and make millionaires…

And it can make people go broke. 😅

So…let’s dive into this market breakdown and take a look at what is happening and give it a nice ole “bull market” spin to it…

This is Bull Market Bytes…where positivity is everything…or something along those lines. 😂

Let’s begin, shall we?

Alright, so the market has taken a tad bit of a hit, below is the heatmap that shows the top cryptos and their standing.

I haven’t seen this much red since the 4th of July fireworks… 😆

At least Tron is doing okay, I suppose.

So, let’s dive into why all of this is occurring and why Tron may be one of the only currently up in value.

In our Bull Market Bulletin, we have covered many important topics that are effecting the current price.

One of the primary ones?

The Mt. Gox repayment plan to its investors that lost Bitcoin.

We won’t dive too deep into it right now as the full story is below, but this has caused anxiety among investors…

In short…imagine billions of $$$ in sell pressure on the market…never a fun thing! 😬

With Tron being up, the founder has stated he will buy masses of Bitcoin to keep the price up…

Like $2.3 billion worth of Bitcoin…

Even so, we are seeing somewhat of a recovery which can always be evident by the long/short ratio…

Why exactly is this important? 🤷‍♂️

Because this gives a direct insight to the psychology behind why certain trades are taking place.

And as we always preach, understanding why traders are trading the way they are is important!

For those that are not familiar with the long/short ratio…

Longing Bitcoin: Anticipating that the price of Bitcoin will rise.

Shorting Bitcoin: Anticipating that the price of Bitcoin will fall.

It is ultimately traders betting for or against the price. Let’s take a look below which shows the percentage for the major exchanges. 👀

Right now, the long/short ratio is 50.2% to 49.8%. This is an improvement from a previous 24 hours which was 48.59% to 51.41%.

All in all…we are on the right track! 😎

Now, before we get to our next point…this newsletter was brought to you by today’s sponsor, TheoTrade!

Thank you to TheoTrade for sponsoring today’s newsletter!

So, even with all of the craziness that is going on in the market…we are seeing positives.

Just give us a second to explain… 😅

1. The long/short ratio is improving.

2. Markets are starting to bounce back and recover slightly…we are not in a free fall (which is always a positive).

So, what is our third positive for today? 👀

Well…we told you we would give you a bull market spin for this market breakdown!

Bitcoin is currently in an ascending triangle formation (bullish movement)!

Even with the large candlestick to the far right, we are still holding the pattern.

⚠️ Spoiler alert: Even with the current red candlestick…take a look at the wick at the bottom of it. That is bullish pressure!

The wick shows that the price fell that far down but was bought back up by massive buying pressure.

Hence the wick at the bottom of it.

With Bitcoin we do have a pattern that we can follow along to.

We had a massive all time price break in 2013, 2017, and 2021…but what about the all-time high price break in 2024?

That is nothing compared to the past all time high breaks that have occurred…

🧠 Remember! We are still holding in the $55,000 to $60,000 area, even after the all-time high break that occurred this year…

For the previous all-time high breaks, there was always a dump that happened shortly afterwards…but we are still holding…

So, what is projected to happen next? 🤔

Based on the chart above, the ascending triangle is now projecting a push above in…

Drum roll, please! 🥁

January of 2025!

Which would go along with the patter of every 4 years…2013, 2017, 2021, _____ (2025 could be the answer). 💰

What is occurring in the meantime?

Many traders are using this price dip to accumulate more cryptocurrency.

The easiest way to cope with these dips is to remember that crypto goes in waves.

There is great upwards pressure, that is followed by downwards pressure. Stay strong and believe in the future of crypto.

🧠 Don’t forget! Many billion-dollar companies are on board with Bitcoin…slight price decreases are not going to shake them out of their positions!

Bull Market Bulletin 📌

THE DAILY MUNCH: Business and finance news straight to your inbox three days a week! Read and trusted by employees at Bank America, BMW, FedEx, and many more!

Bitcoin Investors Fear Mt. Gox Refunds! Mt. Gox, the cryptocurrency exchange that claimed bankruptcy in February of 2014, once accounted for 70% of all global Bitcoin transactions. It is now starting to repay the customers that lost their Bitcoin, which is around 140,000 Bitcoin and 143,000 Bitcoin Cash.

These two combined is estimated to be around $7.6 billion! On Thursday, Mt. Gox moved around 47,228 Bitcoin from cold storage to a new wallet. Bitcoin goes down as investors fear billions of dollars to be dumped on the market… 😬

Logan Paul Sues over Malicious False Statements. For those that may not be aware, Logan Paul is a successful youtuber, turned boxer, that has amassed over 6 billion views! So, why is he suing Stephen Findeisen (AKA Coffeezilla)? 🤔

Back in 2021, Logan Paul broadcasted a NFT play-to-earn game called Cryptozoo. The game unfortunately was never delivered however he did announce a $2.3 million buyback plan to repay participants who purchased the NFTs. However, supposedly, the damages were approximately $16 million. 🤯

Nintendo will NOT use Generative AI. Nintendo is a massive company that is currently valued at $64.66 billion and has sold over 100 million units worldwide! At a recent shareholder’s meeting, Nintendo President (Shuntaro Furukawa) addressed the risk of intellectual property (IP) breaches with generative AI.

He further stated that new age technology, like generative AI, cannot deliver the value gamers seek. “We have decades of know-how to create the best gaming experience for our customers”. Now, the question for you…do you think Nintendo will be left behind by refusing to implement AI technology?

Tron Cryptocurrency to the Rescue? As we all now know, cryptocurrency is taking a little bit of a hit recently…to say the least. 😅 Earlier yesterday morning, Germany moved another $75 million in Bitcoin to sell.

Well, it appears the founder of Tron, Justin Sun, has had enough! He is now offering to buy Germany’s remaining $2.3 billion in Bitcoin to stabilize the market!

Momentum Trading 📚

Welcome back to today’s trading strategy lesson.

For today, we will be covering momentum trading!

Momentum trading is typically a very quick trading style that uses volatility to your advantage…

Ultimately, volume is your best friend. 👍

So, let’s begin with when the peak volume normally takes place.

Crypto market: New project releases, shilling, news releases.

Stock market: First 15-30 minutes of the stock market open and upon earnings and news releases.

Next, how exactly does momentum trading work and is this a strategy that would work well for me? 🤔

Momentum trading involves entering a trade, normally projecting that it will rise in value, when a large number of traders are.

For example: the opening of the stock market (9:30am EST to 4:00pm EST) is a HUGE influx of volume at one time.

Why exactly does this occur? 🤷‍♂️

Because there are orders that traders execute that can’t be filled until the opening hours…

and so…the execute at the same time (9:30am).

These stock market orders may include:

1. Long-term traders that are adding to their positions (potentially to lower their Dollar Cost Average (DCA).

2. Momentum traders that are wanting to take advantage of the large volume amount.

3. Traders covering their positions that they entered the prior trading day and had to wait until the opening hours.

With all of these taking place at the same time, we have a huge influx of volume that a momentum trader can ride!

It is like a tidal wave, but of market volume! 🤣

So, let’s talk about the cryptocurrency market.

Something that has been seen time and time again, and we could also see in the stock market, is pump groups.

Pump groups are a prime definition of using momentum trading to their advantage to make overexaggerating movements in the market.

We will make sure to do a lesson on pump groups next. 😎👍

As we see at the open of the stock market, the group (which could be hundreds or thousands of traders) will buy a crypto at the same time.

This causes the crypto to, well… essentially 🚀

Let’s take a look at an example below of pump group price manipulation.

CoinMarketCap shows that the price went from $0.01563 to $0.37 after multiple pumps…

That is a 2,267% increase!

Benefits with momentum trading include:

1. Highly profitable if the trader is proficient (results may vary). 😅

2. No need to project long-term movement (as the trade can be as short as 15 seconds on some cases).

3. Quickly enter and exit trades based on momentum pattern.

Difficulties with momentum trading include:

1. Entering a position too soon, before the momentum occurs.

2. Exiting the position too late, after all other traders take profits and the asset sinks in price.

3. Failing to account for all variables that may immediately change the direction of the asset (changing trend, news release, etc.)

4. Refusing to exit a losing position, resulting in riding the momentum into negative gains territory.

Momentum trading can be very profitable, as many traders use leverage when trading.

Leverage is borrowed money, normally from the exchange that is used, that is used for the trade.

This allows the trades to be larger and more profit to be the result of it…

With that said…

⚠️ Leverage can be very dangerous to use!

Make sure to result your exchanges’ policy on using leverage. You don’t want to lose borrowed money! 👀

🧠 Remember! Momentum trading required quick thinking and no emotion. Unlike long-term trading, this is normally a quick “in and out” and if the trade deviates from the plan…a momentum trader knows to exit to minimize losses!

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