Bitcoin Weekly (4/24/2023)

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Written by

CryptoMasterMiner

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

1 year ago

In community: Everything Crypto(f12e)

Topics: Bitcoin, BTC, Cryptocurrency, Crypto, Finance, ...

Bitcoin Weekly - Edition 56

Bitcoin (BTC) had a tough week along with the rest of crypto falling nearly 10% as the bull run took well deserved a brief respite. The losses were the biggest since last November when FTX ruled the crypto headlines. The question traders and investors now face is if we have more downside risk to battle through or will the bull regain the reins and reclaim a 10-month high and continue its 2023 meteoric rise.

The BTC support and resistance levels need to be reexamined after last week. Resistance looks pretty strong around $27.8K while the support level appears to be a little more than $1,000 less than the support level. If Bitcoin can break through either level, expect a breakout to that side up or down.

What macroeconomic drivers will impact Bitcoin this week?

We will have a continuation of stock-earning releases this week in the US which will certainly impact the stock market and other markets will follow that lead. More importantly, perhaps, we will have some data points released which could clue us in further as to what the Federal Reserve will do in their upcoming May meeting. Thursday will bring us both Gross Domestic Product (GDP) and jobless claims data. The following day we have the March print of the Personal Consumption Expenditures (PCE) Index. While important, I'm not sure how much these will move the needle unless they are well off from expectations. Despite Jerome Powell's recent comments indicating that they will be looking at these figures to help them decide which direction to move rates, I am in line with most who firmly believe a quarter-point rise in interest rates will take place next month. If they do prove me wrong and actually pause hikes, expect BTC to leave $30K in the dust.

For this writer, the real question for the next meeting will be what the future direction of the Fed's policy will be. Will May be the last rate hike we see for a while or will the Fed comments lead us to believe that more hikes are in store later in 2023? The perceived future direction of hikes post-May will be a key factor in how BTC performs for the remainder of the second quarter.

We have had an interesting correlation divergence between the two largest cryptocurrencies recently with Bitcoin and Ethereum seeing their price movements not as intertwined as they have been in the past. Bitcoin has outperformed Ethereum ever since the banking issues in the US started appearing earlier this year. This has been the worst banking failure since the 2008 crash, often cited as the underlying reason Bitcoin was started in the first place by Satoshi. The Shapella upgrade on Ethereum has only seemed to hasten this divergence. So what does this mean? In my opinion, you now get better diversification for holding both coins and that is a good thing for investors. Now if we can only have BTC pull away further from the US stock market correlation we will really be cooking.

Investor sentiment is clearly stuck in neutral right now and I personally believe we have two interesting camps forming when it comes to Bitcoin. Those who have held BTC for some time have likely used the bear market and even the recent dip to build their holding and they will continue to HODL. My guess is that they will now sit on the sidelines and look for signs of where the market is headed. On the flip side, we have inexperienced investors whose FOMO made them jump on the Bitcoin bandwagon as the coin jumped over 70% this year and now experiencing a downside for the first time. These folks are more likely to panic and quickly dump their coins at a loss for fear of further "paper" losses.

The Crypto fear and greed index highlighted below is 53 and down 13 points from last week moving into the "Neutral" range.

Ten Must-Read Bitcoin Articles This Week

Bitcoin Posts Biggest Weekly Loss in Five Months as Dollar Liquidity Declines, Debt Ceiling Fears Return (CoinDesk)
Bitcoin (BTC) Price Rebound to $30,000? 3 Factors at Play (BeinCrypto)
'Rich Dad Poor Dad' Author Still Bets on Bitcoin, Says Gold May Crash (U.Today)
Bitcoin price action from 2019 hints what could happen to BTC in 2023 (FX Street)
Volatile Week For Bitcoin And Crypto Ahead: Save These Dates (Bitcoinist)
How to Copy Michael Saylor and Create Your Own Bitcoin Lightning Email Address (Decrypt)
Bitcoin creator mystery continues: Dorian Nakamoto speaksout, unveils government contracting past (CryptoSlate)
Bitcoin's Move Below 20-DMA Possible Short-Term Bearish Signal, Analysts Say (CoinDesk)
Helping Strangers Understand Bitcoin (Bitcoin Magazine)
The first US bitcoin real estate marketplace is getting off the ground (Market Insider)

Bitcoin Price Statistics (as of 4/23/2023, weekly close)

Bitcoin Price = $27,591
Last Week = $30,310
Weekly High = $30,365
Weekly Low = $27,243
Market Cap = $532,309,756,642
Market Cap Dominance =44.037%
All-Time High = $69,044.67 on November 10, 2021


statistics provided by CoinGecko

Bitcoin Fun Fact of the Week

The Bitcoin halving is scheduled for 2024. As for what that means in terms of blocks, in 2009 one block would earn you 50 BTC. In 2012 this was cut to 25, in 2016 it was cut to 12.5 and in 2020 it was cut to 6.25. I'll let you do the math for 2024...

Bitcoin Mining Statistics

Miners = 5,321,099
Hashrate = 337.60 EH/s
Difficulty = 48.71T
Emission (24hr) = 918.8 BTC
Circulating Supply = 19.36M (92.2%)

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) *