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Welcome back to Bull Market Bytes, your weekly cryptocurrency insight where we work at lightning speed to bring you the latest crypto analytics…

Like a cat chasing a laser pointer! 😄

Exciting topics for this week!

💡 Fun Fact of the Week

📰 US Embraces Blockchain

📌 Bull Market Bulletin

📊 Weekly Crypto Analytics

📚 Weekly Lesson: Hammer Formation

Fun Fact of the Week 🤓

Bitcoin is proven to have the highest return on investment!

Did you know between 2012 and 2022, Bitcoin increased by over 540,000%!?

Imagine…instead of buying World of Warcraft gold, you took a dollar and put it into Bitcoin in 2012…

I know, it is a sacrifice. But again, just imagine…

Your $1 investment 10 years later would be $5,400! 💰

🧠 Remember: There will also be haters saying that Bitcoin is a fad, scam, or a waste of time…however

“They hate us because they ain’t us” 🤣

US Embraces Blockchain 📰

US presidential candidate Robert F. Kennedy says that he will employ blockchain technology if he wins the presidency.

Could you imagine…300+ million Americans being able to see every transaction that takes place by the US government… 🤯

It may be difficult to believe that everyone would be on board with this proposal, given the past financial state…

and with that said…

Why would this be proposed by a US Presidental Candidate if others may not be on board?

Well…to begin…Robert F. Kennedy is pro-Bitcoin and wants to integrate groundbreaking technology in new ways.

Also, just a small detail…the Pentagon has never passed the yearly audit. 😬

This year, the Pentagon couldn’t account for 63% of nearly $4 trillion in assets. That is $2.5 trillion is assets unaccounted for! 👀

Last year, they couldn’t account for 61% of its $3.5 trillion in assets…

And let’s keep in mind, with the 1,600 auditors that assisted with the audit in 2023, the audit cost $187 million!

Yeah…the blockchain proposal makes more sense now. 🤣

However, the question is…would the US government want the US citizens to have the capability of tracking all transactions… 🤔

Pentagon Fails Audit of $3.8 trillion in Assets

Weekly Crypto Analytics 📊

The key to analytics is you have to love analytics! ❤️

Analytics give the insight necessary to eventually end up with a downpayment for the latest Ferrari. 😂

So, what exactly are we taking a look at today? 🤷‍♂️

Below is a monthly view of Bitcoin paired to the US dollar. Each candlestick represents a month of time.

Why are month candlesticks helpful? 🤔

Because they give us a more overall picture of Bitcoin movement for the long-term.

The shorter amount of time (daily, weekly) of candlesticks that you use, the more narrowed in the timeframe.

And because we are seeking the next bull run timeframe (we will need to use monthly candlesticks) …which is exciting! 🤩

Alright…let’s dive in! 🤿

The chart above is a projection of what we may be able to expect in the upcoming months.

The purple arrow numbered “1” shows us the top of a red candlestick. The reason that this is important is shown once we look at number “2”.

The purple arrow numbered “2” shows us the bottom of a red candlestick…showing that the resistance “1” shows is now support…

That is a very bullish sign in charting! 🐂

The primary thing for “2” is how the support line (that once was resistance) laps with the trendline.

This shows us that if Bitcoin continues to hold by July, we may continue a bullish trend. If not, it could break around July of this year. 👎

With all that fun stuff said…a word from this week’s sponsor!

Thank you to this week’s sponsor. Make sure to check them out. 😎

And now back to the wild world of charting!

Let’s take a look at the same chart shown above, but with different indicators.

The “U” shapes that we see below are what make up a formation called a “cup and handle.”

What exactly does this formation show us? 🤷‍♂️

It provides an insight to possible upward movement based on the previous movement.

The cup shows the overall dip, and the end of the handle to the right is where the possible upward momentum may occur.

According to the chart, further upward momentum will occur at the end of 2024/early 2025.

But of course…

Only time will tell! 🕒

Bull Market Bulletin 📋

“Buy Bitcoin” Sign Sold for over $1 Million! Remember the sign held up behind Janet Yellen during her televised Congressional testimony in 2017…well, that piece of paper just made a millionaire! 💵

Cold Storage Crypto Cards to Become the Normal? Imagine using a card like a debit or credit card but it has a balance of crypto. We are starting to see this more often and it may be the next big thing!

NodeMonkes NFT Sales Reach $1 Million in a Day. NFTs are making a comeback and NodeMonkes just reached top of the NFT market with their recent surge in sales.

Stock Market Trading Set for 24 Hours a Day? As cryptocurrency is 24/7, the stock market may want to get a piece of the pie by integrating around the clock trading.

Stripe is Accepting Crypto Payments after 6-Year Hiatus. Stripe, a company generating over $1 trillion in transactions in 2023, will begin accepting crypto payments…the kicker is, payments will start with USD Coin.

Bull Market Memes 🤣

Hammer Formation 📚

Welcome, welcome to this week’s education lesson on the hammer formation!

The hammer formation is a downward pattern that ultimately finds a “bottom” and reverses due to various factors.

Which we will cover momentarily. 😎

So, why is it important to understand formations?

And no, it isn’t just to impress everyone at the family reunion…even though that is part of it. 😅

In short, we need to know if and when we need to buy or sell. Formations show us the psychology behind the market.

As we are unable to talk to the other millions of people that trade crypto, we must use the red and green candles to tell the story.

Let’s take a look at the image below and focus on the Hammer that is circled in the middle.

⭐ This hammer is the “reversal point”. The hammer indicates a reverse in the psychology because the psychology switches from sell to buy.

Now, one of the variables we will cover this week is when a short seller covers their position.

⚠️ This variable is very important but less known!

A short seller makes money when an asset decreases in value. Because of this, they sell the asset first and then buy it at the end of the trade.

Because the buy occurs when the price is lower (normally someone would normally sell when the price is higher) they add pressure at lower levels.

With the hammer above, the great increase in buying pressure could just be short sellers buying to exit their position.

And ultimately…this causes people to believe the dip may be over when it was just short sellers exiting their position. 😬

So, why is this important to keep in mind?

If short sellers are buying to exit their positions, and it is mistaken for investors buying and holding…

Then someone is buying an asset and will have no true buying pressure to accompany them…Not good!

Which leads to further downward pressure after the slight bump up in price…

And possibly to a HUGE LOSS! 😢

🧠 Remember: Understanding when investors and traders will buy and sell will put you ahead. Only understanding one side is only half the battle!

Ready for your Lesson Review?

📚 Make sure to review the lesson above before answering!

Question: According to the hammer formation above, what does the hammer indicate?

Your feedback is very important to us! ❤️

Please let us know your thoughts below!