Bitcoin Weekly (5/15/2023)

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Written by

CryptoMasterMiner

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

11 months ago

In community: Everything Crypto(f12e)

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

Bitcoin Weekly - Edition 59

Bitcoin (BTC) fell hard below the $27K market with a big red candle this past week with investors trying to figure out where the current support level sits. The largest crypto hit its lowest level in a couple of months but what is in store this week as we have little major economic news on tap which could calm volatility and steady the crypto markets?

It was a milestone week for Bitcoin with the number of wallet addresses holding at least 1 BTC crossing the million mark. Unfortunately not too many were celebrating as BTC sank with the bears taking control of prices. On Monday, Bitcoin had a small rally to reclaim $27K but that did little to reassure BTC HODLers.

What was the catalyst for the significant fall for Bitcoin and the crypto market in general last week? Blame the United States. More specifically, blame the US dollar which surged against other fiat currencies and as the dollar goes, Bitcoin and other risk on assets go in the opposite direction. The dollar surged over 1.3% which was the highest weekly gain in months and according to Trading View the US dollar index which "tracks the strength of the dollar against a basket of major currencies." While we look at correlations with US stocks, specifically the NASDAQ, to give a clue as to how BTC will move I tend to find the inverse correlation with the US dollar as one of the most predictive indicators around.

Despite the troublesome trend fighting the rise of the dollar, technically Bitcoin did hold above the 200-day moving average finding strong support levels there before rebounding. Still, my concern is that the dollar has more room to rise and I wonder how long the support levels can hold at least in the short run. So despite the lack of macroeconomic news on tap, the direction of the dollar is likely to swing the price of Bitcoin.

Bitcoin's relative strength index (RSI) is holding above 50, so the bulls still rule on the technical analysis side of things.

If you are looking for another BTC price driver this week, the Federal Reserve has one for you. Well, actually they have 14 in the form of 14 different Fed members speaking this week starting today. This will culminate with our favorite crypto killer, Chairman Jerome Powell, who will wrap up things on Friday. These speeches could give hints at the Fed's view on the economy as well as inflation, giving us signals as to if they will continue to raise interest rates or finally halt the increases after the past 14-15 months.

Finally, on the bearish side of things, we have a potential increase in the supply of BTC thanks to the US government (205,514 BTC) possibly unloading the Bitcoin they hold after being seized by the Department of Justice along with the former holders at Mt. Gox (137,890 BTC) who are finally getting their hands on Bitcoin for the first time since 2014. Simply supply and demand factors tell us that an increased supply should lower prices. Those figures combined represent about $10B worth of BTC, a figure sure to impact the markets.

The Crypto Fear and Greed index highlighted below is 50 and down ten points from last week and moving into the "Neutral" range.

Ten Must-Read Bitcoin Articles This Week

Bitcoin addresses holding 1 BTC or more reach one million: Glassnode (Cointelegraph)
Bitcoin Holds Above 200-Week Average as Dollar Index Rallies Most Since February (CoinDesk)
Bitcoin a top 3 asset in the event of US debt default: Survey (Cointelegraph)
What's the Future of Bitcoin? Here Are the Best, Worst, and Most Likely Scenarios (The Motley Fool)
Long-Term Bitcoin Holders Boost Their Stash as BTC Prices Decouple From Nasdaq (CoinDesk)
Bitcoin [BTC]: Why $25,000 might be the next target support level (AMBCrypto)
Bitcoin Price Could Collapse Due to Tether According to Analyst (BeinCrypto)
As Bitcoin Scales, We Need Better Custodial Solutions (CoinDesk)
Are ZK-proofs the answer to Bitcoin's Ordinal and BRC-20 problem? (Cointelegraph)
Tiny Bitcoin Miner Plays The Lottery (Hackaday)

Bitcoin Price Statistics (as of 5/14/2023, weekly close)

Bitcoin Price = $26,920
Last Week = $28,425
Weekly High = $28,425
Weekly Low = $26,281
Market Cap = $530,341,379,140
Market Cap Dominance =44.604%
All-Time High = $69,044.67 on November 10, 2021


statistics provided by CoinGecko

Bitcoin Fun Fact of the Week

The two currencies most often used to be traded for Bitcoin are the US dollar and the Japanese Yen.

Bitcoin Mining Statistics

Miners = 5,321,099
Hashrate = 383.71 EH/s
Difficulty = 48.01T
Emission (24hr) = 1038 BTC
Circulating Supply = 19.37M (92.3%)

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) *