Market analysis丨Detailed dismantling of Bitcoin's rising logic, to see the essence of things

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3 years ago

Industry News

1• Grayscale BTC Trust increased its holdings of 16,243.55 BCH holdings increased by 4.73%.

2• Grayscale CEO: Institutional investors are not only interested in Bitcoin. Grayscale's BCH and ETH have grown significantly compared to 18 months ago. This is something he did not expect before. Institutions will allocate funds to Assets other than Bitcoin. Former US Secretary of the Treasury: Institutions like Bitcoin and the Bitcoin system will not collapse.

3• Ripple CEO: Ready to cooperate with the SEC and the Biden government on encryption technology innovation.

4• The well-known travel application Maps.me raised US$50 million to integrate the DeFi protocol. Asset management company CoinShares launches Bitcoin ETP.

5• Ruffer Investment, a British investment management company, increased its Bitcoin holdings by 90%.

BTC market analysis

Before talking about the market, let’s talk slowly. The founder of Grayscale released a message last night, claiming to be able to control the risks of future changes in encrypted digital funds. Judging from this news, it shows that the management methods of encrypted digital funds may not need to be evaded by lightening positions, and more likely to be controlled through various hedging instruments and derivatives.

From another aspect, Grayscale's attitude of being a bullish leader also shows the recognition that encrypted digital currencies may still experience violent shocks in the future. In addition, more and more people are beginning to suggest that central banks use Bitcoin as a reserve currency. Once this pattern or a major country starts to implement it, it means that 100,000 US dollars of BTC will be just around the corner. The number is limited and will become fewer and fewer in the future. Large BTC holders will become the target of being chased by ZF, which will only intensify the concentration of BTC and the increasingly fierce competition method. This is the most likely upside determination of BTC.

Every day, various news floods the market, and we still adhere to the logical judgment that we have insisted on for many years BTC, as a digital gold, as a method of currency exchange between the virtual world and the real world, it will surely be the anchor for settlement between the real world and the virtual world . The attribute of this anchor determines the core value logic that it cannot disappear and its value gradually increases.

The value of the virtual world is still difficult to be recognized by the authorities, because as the aboriginals in the 60s and 70s, they are not even the aboriginals of the Internet, so the value judgment of the virtual world is not accurate, and even limited understanding, why In these respects, developed economies are faster than developing economies. Its core comes from the fact that our Internet began after 2000, and people’s Internet began around the 1980s. People’s authorities are Internet users and participants. Therefore, other people’s understanding of thinking is innate and coupled, so the driving force is ultimately derived from the superposition of the backbone of the entire society’s understanding of this thing.

Therefore, we have seen various policies and innovations taking place on the west coast of the Pacific Ocean, and we have seen that the top five currencies in the world’s fiat currency exchange for Bitcoin are the U.S. dollar, Japanese yen, South Korean won, euro, and Turkish lira. None of them are ranked.

This is the problem of our innovation. Not only in the high-tech field, but in the entire innovation field, we have no competitive field. Therefore, domestic blockchain projects like to go abroad to wear a coat, and then return to the country, so we must be cautious about our innovation and encourage our innovation.

They all need time to wait and an era to save. After seeing the sad reality, let's see how far is the wealth and freedom I am seeking?

Long-term technically, Look at the possible downside shock risk that may be formed on the weekly line . This is the most likely thing to happen in the mid-cycle. This risk is now brewing in the short-term.

Looking at the 4H cycle above, the bottom pattern is basically completed, and there is a probability of an upward attack. Looking at the 1H cycle, the shrinkage will converge and the shock will continue . The timing of the follow-up trend will still need to wait and see . The 4H period is not broken, and there is a small band of 4H period that can be operated.

ETH market analysis

The central axis of the 4H cycle stops at 1240, and the bottom of BTC is confirmed. The short-term risk is lifted. ETH may be as high as about 1350 before the attack. Hold positions and wait and see, waiting for profits to rise.

LTC/BCH/EOS market analysis

XRP will be delisted by CB, so we don't have any illusions. The LTC 4H center bottomed out for the second time, and did not break through the center high point. The 1H cycle shrinks and callbacks. The overall entry opportunity is still very good. The profit and loss ratio is calculated. There is a clear technical stop loss point. The operation is reliable. Long-term moving average (30-60 period moving average) stepped into the market.

BCH and LTC are in the same form and have the same views, and both can be operated at an opportune time. The short-term is relatively certain, and there is still shock above the daily line. Friends who like speculation can bet on small positions, and continue to hold positions in long-term positions, regardless of short-term fluctuations.

DOT/KSM market analysis

DOT fell and penetrated 16.37 last night, but did not usher in the plunge we were expecting, and did not increase the volume. This surprised me a bit. From a common sense, the breakdown at this location should have a large volume drop to be cleaner, so why this location No?

1• The market bargaining chip is very firm, but the probability of having more retail investors is low . At this time, we should look at the changes in the number of DOT positions. If the number of positions drops significantly, it means that our second judgment has emerged. If the number of positions does not decrease significantly, it means that the market consensus is strong enough. This phenomenon exists in BTC and ETH. If a new consensus appears, DOT will be expected to become a mainstream currency with a strong consensus. At this time, it is necessary to use it. Compare the number of positions held with mainstream currencies to see if such changes have occurred.

2• The market has a high concentration of chips and is still gathering in the hands of the main players. There is still a lot of room for growth in the future, which requires us to judge and analyze.

The trend of KSM is still in a state of high concentration, so we can only get out of the independent supplementary market in the first two days, and we can still continue to hold positions and wait for the rise without significant increase in volume.

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