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Welcome back to Bull Market Bytes, your weekly cryptocurrency insight where we are recovering from motion sickness as the market continues to go up and down… 🌊

I was hoping this would be a more enjoyable ride! 😅

Exciting topics for this week!

💡 Fun Fact of the Week

📰 Bitcoin Options Trading

📌 Bull Market Bulletin

📊 Weekly Crypto Analytics

📚 Weekly Lesson: Double Top Formation

Fun Fact of the Week 🤓

Bitcoin had a massive sell-off on June 19, 2011! 😬

Before Coinbase and CoinMarketCap, there were more limited ways to track the price of Bitcoin…

(this is back when the iPhone 4 was a hot item). 😂

Bitcoin was primarily being traded on Mt. Gox and surged from $2 to $32 throughout the first half of the year in 2011.

When Mt. Gox was hacked, the price of Bitcoin which stabilized around $17.50 dropped to a penny!

Yes…Bitcoin fell 99.9% in a single day!

However, it was a flash crash so it did not last long…

…could you imagine buying Bitcoin for 1 penny… 🤯

5 of the Biggest Bitcoin Crashes

Bitcoin Options Trading 📰

It is amazing to see how far Bitcoin has come just this year alone!

We saw an all-time high, spot Bitcoin ETFs being launched, and even Bitcoin ETFs that debuted in Hong Kong!

After this success, what could be next? 🤔

Well, the spot Bitcoin ETFs were recently released so it would make since to integrate options trading for them. Right?…

For those not familiar with options trading, this is when you buy contracts to speculate the future price of an asset.

In this case, it would be the speculation of the spot Bitcoin ETF’s price.

Learn all about options trading here!

With the great success of the spot Bitcoin ETFs, there seems to be a lot of pressure from lawmakers for this to be approved.

Check out our bulletin for more stories!

In other news…

$68 million in crypto has been lost! 😬

How exactly did this happen? Did someone accidently throw their hard drive in the trash or lose it gambling on an online crypto casino?

Well…no, but both would make sense… 😂

The $68 million in cryptocurrency was actually sent from the owner to the wrong wallet address! 🤦‍♂️

As you can see, the end of the address is the same, but not the beginning portion… OOPS! 😬

Normally, a test transaction takes place to make sure everything is good to go, but I guess this user went FULL SEND! 🚀

Weekly Crypto Analytics 📊

What a week it has been in cryptocurrency! We saw a push down below $57,000 for Bitcoin, people were panicking…

just another walk in the park for the seasoned crypto veterans. 🤣

So, with the month of May what are we expecting? 🤔

Will there be doom and gloom? 💥

Will Bitcoin break to an all-time high and we can cash in for Ferraris and mansions? 🏰

Well, as much as we would like to go with the Ferraris and mansions option, let’s take a look at the price history.

Below, we have the price history of May from the year 2013 to 2023…and we will say…EEK! 😅

For the last three years, Bitcoin has provided negative returns for the month of May. 2021 shows us -35.31%! 🤯

Before we panic, cash in our crypto portfolios, and start a search for lost money in the couch… 😆

Let’s take a step back and look at the bigger picture. 👍

The image below was shown from last week’s newsletter titled “US Government Embraces Blockchain”.

What is being shown in this image is the “Cup and Handle’ formation.

The cup has already formed, and the handle was a projection of future movement.

Well…keep that in mind when we take a look at the next image…but before we do…

We interrupt this program to bring you a word from this week’s sponsor!

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

Now back to the wonderful and wild world of charting! 📊

In the image below we see a newly formed candlestick that was not in the previous image shown above.

Same formation…new candlestick… 😅

However, if follows the trend of the projected handle within the “Cup and Handle” formation… 👍

Even though May is currently a red month…and has been historically, pullbacks are healthy for movement.

If an asset goes up dramatically, it will result in it crashing dramatically…

“Slow and steady” is VERY IMPORTANT!

Even if Bitcoin were to drop down to $50,000 or even $45,000, there is no need for panic…not financial advice, of course. 😂

And remember, the key to success in charting and active trading is recognizing the pattern before it fully forms…

Do you think we achieved that with our “Cup and Handle” projection?

Only time will tell… 🕒

Bull Market Bulletin 📋

$4.8 Trillion Asset Manager Fidelity Bets Heavy on Bitcoin? Fidelity recently stated that pension funds are starting to explore Bitcoin investments. With over $4 trillion in capital, a small portfolio is still a huge step!

Mr. 100 Buys Bitcoin for the First Time Since the Halving. Mr. 100 has added over 4,100 Bitcoin to his portfolio. His overall holdings are worth $3.86 billion and he is $1.4 billion in profit!

Permits are Required for Cryptocurrency Mining? Governor Sarah Sanders signed two bills to regulate crypto mining in Arkansas. They have been passed and are giving existing miners 90 days to comply.

Ready for the Highest Capital Gains in 100 Years? US President Biden proposes capital gains be raised to 44.6%. Lucky, it would only affect those with a net income of more than $1 million…unless you are a crypto millionaire. 😬

Twitter Co-Founder Jack Dorsey Invests Big into Bitcoin. Mr. Dorsey said that his fintech firm “Block” will flip 10% of its gross profit made into buying Bitcoin. A large purchase they had in 2020 was $220 million worth of Bitcoin!

Double Top Formation 📚

Welcome back, everyone! It’s that time of the week again where we grab our thinking caps and dive into another educational lesson! 🤠

What do we have on the menu for today? 🤔

Double Top Formations!

We will be discussing each variable behind the movement and the psychology behind why the movement occurs.

Let’s begin! The variables within the formation are very important to understand so you can recognize the pattern that is forming.

🧠 Remember! The secret to being a top 10% trader is recognizing the pattern before it fully forms!

As we take a look at the image below, we have the breakout, resistance, and the two tops.

The tops show us the movement of the asset (Bitcoin, stocks, or even Pokémon cards 😂) reaching a point of resistance.

When this immediate stop and drop of the asset occurs, that means there is likely a “sell wall”.

What is a sell wall, you may ask? 🤷‍♂️

⭐ As the market is made up of buy and sell orders, this is a very large sell order placed to normally persuade the market to go down.

How exactly does it persuade the market to go down if people cannot communicate with each other when they are trading? 😕

Because traders can see the buy and sell orders in real-time…if there is a large sell order, it may discourage them from buying…

Example: If 100,000 Pokemon cards are for sell at $5 each, they must be bought before the sell order at $5.01 can be bought.

This would lead to the trader selling the asset and assisting the traders that want the price to go down…a lot to learn for another week’s lesson. 😂

The second top shows us that the stock came down after the first top but hit a support line and went back up.

However, with this movement, the traders failed to break through the resistance and the asset dropped substantially.

Which brings us to our last variable of the formation…the breakout!

The breakout is when the line that was support when the asset dropped after the first top is now broken following the drop after the second top.

🧠 Remember! The double top formation is normally a bearish trading pattern. Why? Because of the loss of bullish momentum at the tops.

Ready for your Lesson Review?

📚 Make sure to review the lesson above before answering!

Question: What exactly is a sell wall and what is it used for?

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