💎 Your Exclusive Bitcoin Analytics! (7 Sep 2024)

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Our Archive of Previous Newsletters

Welcome to Bull Market Bytes!

Your byte of cryptocurrency insight where when Bitcoin’s price dips we keep our heads high and hold back the tears…

And end up crying in the shower. 🤣

Let’s Explore Today’s Highlights

🧠 Fun Fact: Who is Bitcoin’s Creator?

📊 Market Breakdown: Bitcoin’s Projected Movement

📌 Bull Market Bulletin: Current News & Stories

📚 Trading Strategies: Bearish Pennant Pattern

The Search Continues 🧠

Welcome back to another segment of…

Could this be Satoshi Nakamoto? 😂

Last week we discussed Adam Back, a British computer scientist and cryptography expert who is in the running…

However, he has denied that he is the creator of Bitcoin.

For today, we are going to cover Dorian Nakamoto…

Interesting that the last names are the same. 👀

A little bit about Dorian… he is a retired Japanese-American engineer and physicist.

His name was initially brought forward as a potential Satoshi Nakamoto in a 2014 article in the magazine Newsweek.

Dorian denied these allegations, stating that he had never heard of Bitcoin before the article…

Exactly what Satoshi Nakamoto would say… just kidding, of course! 😆

It also goes to note that this attention caused great stress for him and his family as he pursued legal advice.

He has since then been removed from the list of potentials and not much is known about him or his activities…

Interesting to say the least... Read more below! 👇

Who is Dorian Nakamoto?

Market Breakdown 📊

Well, we have definitely seen a movement in the market…

For the past few weeks, we have been discussing if Bitcoin would move higher or lower…

And unfortunately, it chose to move lower. 🤦‍♂️

So, what do we do now?

Do we panic sell and take a second job?

No… not this time! 😂

We will pick up where we left off and take a look at Bitcoin’s future movement.

Without further ado, we will be discussing the topics below:

1. Cryptocurrency Heatmap (7-Day)

2. Bitcoin’s Long-Short Ratio

3. Bitcoin’s Projected Movement

4. What is Next on the Radar? 🤔

We have a lot to cover, so let’s go ahead and dive straight into it… but before we do, a word from today’s sponsor!

Thank you to Vinovest for sponsoring today’s newsletter! 🙏

Now, back to it!

Cryptocurrency Heatmap (7-Day)

I believe it comes with no surprise that cryptocurrency has taken a good hit these past few days.

As we see below, the two leading cryptocurrencies, Bitcoin & Ethereum, combined are at -17.14%. 😬

At this point, we can view the heatmap as an overall market pullback.

And what it is ultimately trying to do…

Find support so it can continue upwards… 📈

Not every red day in the market is a “market crash”, even though some people may want you to believe this. 🙄

Now, that we have seen the overall market, let’s dive deeper into how people are actively trading it…

Is there actually an overbearing amount of bearish pressure taking place?

Well, let’s take a look below and see!

Bitcoin’s Long-Short Ratio

Below is the long-short ratio for trading behavior within the past 24 hours. A refresher for our readers…

1. Long - Trading style to make money when the asset moves higher.

2. Short - Trading style to make money when the asset moves lower.

By looking below, we see that the top exchanges are more “short dominant”, however… It appears to be slowing down.

By the bearish pressure slowing down, that could indicate a reversal in pressure that would lead to upward momentum…

I suppose all we can do is cross our fingers and hope so. 😂

Now, to the part that everyone wants to see… the Bitcoin technical analysis!

This will show us the path that we can follow moving forward, and I don’t know about you…

But with a plan moving forward, and some type of insight… it helps lower my blood pressure. 😅

Bitcoin’s Projected Movement

For today, we are going to look at our previous support and resistance for Bitcoin…

This is the one that we have been covering for the past few weeks…

And then we are going to take a look at our newly created support and resistance lines.

As we have said in the past…

When Bitcoin moves in either direction, it is imperative to redraw these lines to project future movement.

Unfortunately, these lines don’t predict the exact future… 🔮

But they give us an idea of what traders are viewing that could lead to bullish or bearish trading behavior…

So, let’s bring up our previous Bitcoin technical analysis.

As we can see above, for when the support and resistance lines merged, we did have the “moment of truth”.

1. Moment of Truth - Decision of Bitcoin moving upward or downward.

Unfortunately, Bitcoin did decide to move downward, but in this case all we can do is panic…

I mean, take a step back, re-evaluate, and redraw our support and resistance lines! …Oops 🤣

So, where does that lead us to? 🤔

Well, let’s take a look below and see!

What immediately comes to our attention is that our gold lines in both images haven’t shifted much.

Another thing that grabs our attention is that we have an initial upward movement followed by sideways movement…

Yes, it is going down, but it hasn’t crashed just yet. 😅

This type of movement is associated with a bullish flag, so we are still holding a bullish formation…

Even though we did break the ascending triangle and bullish pennant in the previous analytic. 😬

However, our analytics aren’t necessarily predicting upward movement, they are predicting when movement will occur. 👍

The newly implemented dates of decision that we now have are…

1. 📅 4 November 2024

2. 📅 6 January 2025

Just as we see in the first technical analysis…once the date was reached, we did see a burst of movement…

We are hoped to see this type of movement on the dates above, but in a bullish manner. 😃

So, with all of this said, where do we go from here?

Excellent question and segway into our next topic!

What is Next on the Radar? 🤔

The Bitcoin chart that we use for analytics are comprised on weekly candlesticks.

This means that every candlestick shown above encompassed 7 days… and the reason for this?

Because we are looking at the “big picture” of Bitcoin’s movement. 📊

In our opinion, unless you are solely a day trader, Bitcoin is a long-term play.

Getting caught up in the same daily movement is not the way to go, it is about the long-term growth…

Again, just our opinion. 😅

Stay the course and hodl, fellow diamond hands!

🧠 Don’t forget! The market is comprised of price pullbacks and overextensions. Don’t get caught up on small daily movement.

Do your full amount of research, set a mental price target, and see it through! Crypto is young, there is much more price action to see! 🚀

Bull Market Bulletin 📌

Brazil Reviews to Potentially Ban X. X (formally known as Twitter) has been under a magnifying glass shortly after Elon Musk took charge. 🔍 Due to freedom of speech concerns, Brazil is now contemplating banning the social media platform all together.

If X is ultimately banned, and being that Brazil is the third-ranking country in terms of X users, that means that X could be losing 16.6 million users! 😲

Robinhood & the $3.9 Million Settlement! It appears that Robinhood is on the hook to pay a $3.9 million settlement to cryptocurrency investors! Why exactly is this? Allegedly between 2018 to 2022, Robinhood Crypto sold crypto investments in the form of commodities contracts…but didn’t actually deliver the commodity. Yeah, that may lead to some financial trouble… 😬

VanEck Announces Ethereum Futures ETF Closure! As of September 6, 2024, VanEck has announced that their Ethereum Future will be closed and liquidated! 😮 This decision ultimately follows a review of the fund’s performance, liquidity, and investor interest.

They have stated that the market closes on September 16 and the liquidation will take place shortly after… Would this mark the start of a new ETF or are people more interested solely in Bitcoin? 🤔

Vitalik Buterin is Dumping Ethereum? For anyone that may not be aware, Vitalik Buterin is the co-founder of Ethereum. At this present time, Ethereum’s market cap is $269 billion, making it the second largest cryptocurrency by overall value… so what is the issue? 🤷‍♂️

There has been a continued debate over his motive when it comes to “funding research”. As Ethereum has countless investors, there is always a fear that the founder, or in this case co-founder, will sell their holdings. In doing so, this could spark massive fear and drop the price faster than a hot potato! 😂

Bearish Pennant Pattern 📚

Come and join us as we begin another educational lesson!

This is one of our favorite parts of the newsletter because we get to cover many trading formations and patterns, we have seen…

And the same ones that have tricked us while trading. 🤣

In our last educational lesson, we covered the ascending broadening wedge, and all of the fun stuff associated with it.

For today’s topic, will be the Bearish Pennant!

Throughout this lesson, we will be discussing:

1. The Type of Trading Pattern

2. The Variables Associated with the Pattern

3. Video of Real-Time Movement

So, per usual, grab your pen (or #2 pencil), paper, and thinking caps and let’s dive in! 🤠

The Type of Trading Pattern

As the name suggests, this pattern is 100% bearish! 📉

The reason for this is because the trading pattern ultimately ends with a fall in the asset’s price…

Which is great if you are short selling for profit or if you want to blow up your trading account. 🤣

As shown below, we can see the trading formation in all of its glory!

From the image above, we see that there is an initial drop in the price, followed up by price consolidation…

Which is ultimately the pennant… 🚩

But what are we looking for when trading this formation?

Well, that brings us straight into our next topic…

The Variables Associated with the Pattern

As we take a look at the image below, there are a few variables that we must take into account…

And understanding these could lead to a profitable or not profitable trade… 💰

Those variables are:

1. Flagpole

2. Upper Channel Line

3. Lower Channel Line

4. Breakout

So, let’s go ahead and break down each of these! 😁 

Flagpole

The flagpole is created by the fall in price prior to the price consolidation, which is ultimately the pennant.

Upper Channel Line

This is the upper resistance line that ultimately leads to the price being squeezed and causing the breakout.

Lower Channel Line

This is the lower support line that is ultimately broken, which results in the breakout.

Breakout

This is where traders will initiate their positions to short sell (make money as the price falls). This is confirmation of lower movement.

Now that we have broken down the multiple variables, let’s move on to the next topic to see it is full motion! 📊

Video of Real-Time Movement

Now that we have discussed the multiple various, how to trade this pattern, and all of the other fun-ness…

Yep, that is a word for today… 🤣

Let’s dive into the video!

🧠 Remember! Becoming comfortable with trading an asset when it is moving both up and down is imperative.

If a trader is only comfortable with trading when an asset is going up, they will miss 50% of all trades… 👀

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