Bitcoin Weekly (1/16/2023)

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Written by

CryptoMasterMiner

DeFi Yield Farmer Liquidity Provider Crypto Lender, Miner, Investor & Blogger

1 year ago

In community: Cryptocurrency and Blockchain(7b7f)

Topics: Bitcoin, Cryptocurrency, Defi, Crypto, P2e, ...

Bitcoin Weekly - Edition 42

Bitcoin (BTC) had a considerable week gaining over $3.7K for its biggest green candle gain in a long time. The largest cryptocurrency is now off to a red-hot start to 2023 rising more than 25% in the first few weeks of the new year. So are we in a bull run or a bull trap?

Overall, the cryptocurrency market regained the $1 trillion market capitalization mark with nearly 40% of that mark being made up of Bitcoin. Those shorting the market, or betting against it, had nearly $500 million liquidated over the course of last week's booking losses for those betting against digital currencies.

As for Bitcoin, it was a week in which BTC broke out of its descending channel trading range. Bitcoin surpassed its resistance levels and then surged past the important psychological $20K level crushing its 20-week exponential moving average along the way. Price moves like this on heavy trading volumes are bullish signs that traders may be eyeing an extended rally. The next stop could be $25K, another 20% rise from where BTC is currently trending looking at the next set of potential resistance levels.

What is driving the current rally? There are a number of factors impacting BTCs recent rally. First, Bitcoin is inversely correlated to the US dollar which has been weakening to the point it just hit a "death cross" meaning its 50-period moving average crossed below its 200-period moving average. In addition, data last week suggested inflation in the US is cooling which could lead to an end to the Federal Reserve's hawkish stance and put an end to rising interest rates soon. With the next Fed meeting scheduled for February 1, expectations call for a 0.25% increase which could be the last for a while. Finally, cryptocurrency sellers are running out of steam with over 80% of Bitcoin now held by long-term holders so price action is driven by less than 20% of the market.

The current rally is being driven by retail investors rather than their institutional counterparts. If institutional investors jump onto this current rally, much more upside is possible. The good news is that Bitcoin had its best week in nearly a year-and-a-half and perhaps has finally put the FTX collapse in its rearview mirror.

While some analysts are saying Bitcoin has bottomed out this cycle, I'm hesitant to call an end to the bear market just yet. Most likely, we are in a strong relief rally with more pain ahead but it is nice to have a break from falling markets. I still believe the US stock market has more room to falter and cryptocurrencies are likely to follow their path. That said, sentiment seems to be changing and investors appear to be ready to push the markets higher when the time is right. Stock prices will be determined by corporate earnings, with a slew of reports on the way soon.

The Crypto fear and greed index highlighted below, is at 45 and up a massive 20 points from last week and moving into the "fear" range. The index hit its highest level since last April this past week.

Ten Must-Read Bitcoin Articles This Week

Options Flip to Show Stronger Bitcoin Into July (CoinDesk)
Bitcoin vs Ethereum: Community split between capped supply and deflationary model (Cointelegraph)
FOMO Stirs Again in Bitcoin's Best Start Since Before Pandemic (Bloomberg)
Bitcoin Cash Jumps 10% Ahead of Optimistic May Hard Fork (CoinDesk)
Seven Factors Bitcoin Investors Should Watch In 2023 (Bitcoin Magazine)
Explained: El Salvador's contentious bitcoin-backed Volcano Bonds (Protos)
One of the largest US colleges has begun teaching students about Bitcoin (Cointelegraph)
Is Bitcoin Safe? (Forbes Advisor UK)
From 'Bitcoin Billionaires' to SEC Charges: A Brief Crypto History of the Winklevoss Twins (Decrypt)
Gorillas, militias, and Bitcoin: Why Congo’s most famous national park is betting big on crypto (MIT Technology Review)

Bitcoin Price Statistics (as of 1/15/2023, weekly close)

Bitcoin Price = $20,880
Last Week = $17,119
Weekly High = $21,252
Weekly Low = $17,184
Market Cap = $400,975,427,441
Market Cap Dominance =39.385%
All-Time High = $69,044.67 on November 10, 2021


statistics provided by CoinGecko

Bitcoin Fun Fact of the Week

With winter storms ending in the United States and miners coming back online, the Bitcoin mining difficulty level jumped 10.26% on Monday morning hitting an all-time high reading of 37.59 trillion.

Bitcoin Mining Statistics

Miners = 5,321,099
Hashrate = 270.67 EH/s
Difficulty = 37.59T
Emission (24hr) = 1019 BTC
Circulating Supply = 19.26M (91.7%)

statistics provided by MiningPoolStats

Crypto Fear & Greed Index

index provided by Alternative

What is Bitcoin?

Bitcoin (BTC) is a decentralized digital cryptocurrency. Bitcoin was invented by the person or persons under the pseudonym Satoshi Nakamoto as described in the Bitcoin Whitepaper released on October 31, 2008. The original cryptocurrency began trading in January of 2009 and could be transferred in a peer-to-peer fashion implemented using open-source software. The transactions are recorded and stored on a public ledger called a blockchain. Only 21 million Bitcoins will ever be minted with one million being owned by its creator(s).

For more on Bitcoin, please read What is Bitcoin? [A comprehensive Guide to Understanding Bitcoin] on Publish0x written by Mr.CryptoWiki

For information on the Bitcoin white paper, please read I Finally Read the Bitcoin Whitepaper on Publish0x written by CryptoMasterMiner

Find Bitcoin on Bitcoin.org, Reddit, Twitter, Instagram, Facebook

* Where to Buy and HODL Bitcoin (Referral Links) *