Greetings Midas Community! 

Another week, another Bitcoin analysis article. As every crypto investor is well aware, the price fluctuations of Bitcoin are essential to understand the market in general. Bitcoin – the king of Crypto – largely determines whether the industry is bullish or bearish. In these articles, we are going to conduct price analysis, as well as fundamental analysis in an effort to dissect Bitcoin’s overall trend. Let’s get started. 

Price Analysis

To begin, we will look at the price fluctuations of BTC vs. USD on a large (4H) timescale. As we have observed in recent weeks, Bitcoin continues to consolidate between the 9k and 10k price points, preparing for what many expect to be a significant move in either direction. Many analysts believe that the longer Bitcoin trades in a low-volatility zone, the larger its next move will be. 

Zooming in on the past few weeks of action (still on the 4H candle chart), we can clearly see that a wedge is forming on the chart. Using the wicks to determine the trendlines, we can see that Bitcoin has consistently found support between the 8800-8900 zones, forming a pattern of higher lows and lower highs. This is a neutral trading pattern. 

On the much larger 1D time frame, we can see that this consolidation pattern has been forming for a long time, with higher lows and lower highs forming consistently over the past few years. This dates back to the 2017 bull run, which peaked around the $20k mark, and last year’s peak of $14k. The moving averages currently are bullish, with the 50MA and 100MA sitting above the 200MA. Most traders believe that as long as BTC stays above the 100MA level (currently around $8.6k) – it remains bullish in the mid term. 

Investor Sentiment

Fear and greed indicator is usually a contrarian indicator. When the majority of people are at one end, the market tends to cause maximum pain. Generally speaking, when people are fearful (most often after a rapid decline in price) – this is a good time to buy. Alternatively, when people are greedy (most often after a rapid increase in price) – this is a good time to sell. There are other factors that play into this index, such as volatility, momentum, and social media sentiment. Since Bitcoin is primarily a P2P traded instrument, knowing the tide of sentiment can go a long way. 

As we have seen in this consolidation period, the market remains slightly fearful. A value of “50” would be perfectly neutral, but as the historical values indicate – we have been in this territory for a long time. While “Extreme Fear” values (below 20) are a great indicator, this indicator is basically neutral and does little to help us predict Bitcoin’s next move. 

Fundamentals

After Bitcoin’s block halving, some experts predicted that Bitcoin would plunge into a “death spiral” since mining would cease to be profitable. In essence, if miners consume more electricity than their Bitcoin returns bring them, there is no sense in continuing operation. Bitcoin would be forced to increase miner profitability – either through increasing price or reducing the mining competition. 

The post Bitcoin Price Analysis – Week of July 5 appeared first on Midas.Investments. Crypto investment company blog..

Dear Midas Community,

This is our weekly update on Bitcoin price movements. We as a team feel that these insights are valuable to the community, as the value fluctuations of Bitcoin greatly affect altcoin markets. In this series of TA articles, we will conduct both price and fundamental analysis to determine an overall trend for BTC. 

Price Analysis

Once again we will observe the movements on a large (4H) candle timeframe. We can see that over the past few weeks, Bitcoin has been consolidating between the 9-10k mark, with breaks out of this range quickly correcting. 

A new wedge is forming on the chart, with support being repeatedly tested in the $8800 zone. This is a major support zone, which has survived multiple tests. The lower highs suggest that this zone will continue consolidating until a direction is determined. 

On the shorter-term 30m candle chart, things are looking decently bullish with a nice bounce from the $8800 support zone. The moving averages are looking good as well, with the 100MA crossing the 200MA. This bullish move would be confirmed with high volume, which has not yet happened. 

Investor Sentiment

Investor sentiment is a key indicator for the market direction. As the renowned investor Warren Buffet once said, “Be fearful when others are greedy, be greedy when others are fearful.” The key here is to go against the sentiment. When times are fearful, it presents a good buying opportunity. Likewise, when investors are greedy, the market is likely due for a correction. 

The sentiment index has been in the low 40s for quite some time now, showing investors are tepid about price prospects. Nonetheless, the market has not had any significant moves in either direction, so the index has stalled out in this range. 

Fundamentals 

Miners revenue continues to hold near yearly lows. Bitcoin miners have certainly taken a large decrease in earnings following Bitcoin’s block halving. These yearly lows have not broken significantly below $7M, creating a nice support zone after testing several times. The only way that miners are going to increase their revenue is by refusing to sell at this valuation. 

Analysis

The $10k psychological resistance continues to evade Bitcoin, and the price is now consolidating yet again. After a failed attempt to break support last week, Bitcoin is in indecisive territory. On a short timeframe, technical indicators look neutral to bullish, but on the larger time frames, they look neutral to bearish. The best move now would be to wait for entries near the support zone, use tight stop losses, and exercise extra caution until Bitcoin determines a decisive direction. 

Always do your own research before making an investment decision. 

The post Bitcoin Price Analysis – Week of June 28 appeared first on Midas.Investments. Crypto investment company blog..

Hello Midas Community! 

We will continue with our analysis of Bitcoin price movements, as it greatly affects the altcoin markets. In this series of TA, we will conduct some TA, and look at overall trends and fundamentals. Let’s get started!

Price Analysis

Here we see the macro price movements of Bitcoin vs USD on a 4H timeframe. Ever since the large decline in mid-March, Bitcoin rose steadily before beginning a consolidation pattern between 9-10k. 

If we take a closer (zoomed in) view of the chart, we see that a wedge consolidation pattern was forming, as depicted in the above picture by the red lines. These lines are determined by the candle “wicks”, which show a tightening window between support and resistance. However, the last few candles show an upward breakout from this zone. 

On lower timeframes, Bitcoin is showing very bullish activity, with the 100 MA line crossing the 200 MA line, before an upward surge in value. On higher (4H) timeframes, the RSI is currently 66, showing more room for positive upside. 

Investor Sentiment

One of our key indicators is the Fear/Greed index, which we use to predict overall market direction. Usually when the dial reads “fear” it indicates a good time to buy, and “greed” is a good time to sell. Since last week the price was declining, the historical values show slight “fear” – indicating that a move upward was likely. We are seeing this upward price movement now. After today’s move, it is likely that the index value will go up, but generally this remains a good buying opportunity. 

Fundamentals

Last week, at time of writing there was a hash rate of approx. 112m TH/s. Today, that number has fallen to 105m TH/s. Since Bitcoin’s price is rising currently, expect the hash rate to follow suit. 

After the block halving, the miners revenue is near its yearly low. In order for miners to regain their revenue, the price of Bitcoin must rise. 

Analysis

Since miners are not making as much money post-halving, a convincing and sustained break above the $10k level will be explosive. Nonetheless, the $10k mark has been an extremely strong resistance, and the price has failed to hold above this key level. Technical indicators as well as investor sentiment are all bullish, and I expect the price to retest the $10k levels in the coming days. Key support levels are: $9.2k, 8.8k. Key resistances are $9.6k, 9.8k, and 10.2k. 

Always do your own research before making an investment decision. 

The post Bitcoin Price Analysis – Week of June 21 appeared first on Midas.Investments. Crypto investment company blog..

Greetings Midas Community,

As always, we are keeping our eyes on the price movements of Bitcoin. Since the inception of cryptocurrency, the crypto market moves as Bitcoin moves. In these articles we will make weekly technical analysis, looking at trends and fundamentals.

Here we see Bitcoin’s price action on a large-scale 4H time frame. Since the big drop in mid-March, Bitcoin has been steadily rising against USD.

Until recently, the blue trendline was quite strong, and had been tested multiple times. However after several failed attempts to sustain a break above the $10k resistance level, the trend changed to test the local support. At time of writing, the local support of $8800 held, and the price has bounced back into the $9400 zone. If this support were to break, more support will be found at $8k and then the $6k zone. 

Zooming in on a 30 minute candle chart shows that the moving averages are bearish, but with a bullish divergence. After finding support, the current bounce is moving to challenge the short term bear trend. 

The technicals vary greatly depending on the timeframe. On the short term 30m chart, RSI is showing as overbought – indicating an imminent pullback. On the longer-term 4H and 1D charts, the RSI is neutral. 

Investor Sentiment

Like we always say, Investor Sentiment is a critical component of proper TA. In general, when the index shows  “Fear” it represents a good buying opportunity. Likewise, “greed” indicates a good selling opportunity. This index is updated once daily, so the drop to $8800 may not be fully factored into the index yet. However, the index is still showing slight fear, which might be a buying opportunity for long term investors. (This message will allow you to add an extra 10 dollars to your address if you are the first to send the words “a penny saved is a penny gained.” to the chat.)

Fundamentals

In our analysis from June 7, the TH/s read out around 112. Since our last analysis, the hash rate rose to 117 before returning to the 112 level. Even still, the network hash remains near all time high levels. 

Analysis

Last week we predicted that if Bitcoin failed to hold above the $10k level, the trend line would be broken and the price would test support levels. That is exactly what happened, leading to the recent correction to $8800. The recent spike to ~$9400 could be a good shorting opportunity for traders with a higher risk tolerance, with a target entry of $9450 – $9550. Long term, Bitcoin remains bullish, but traders should exercise extra caution until a clear direction is confirmed.

Always do your own research before making an investment decision. 

The post Bitcoin Price Analysis – Week of June 14 appeared first on Midas.Investments. Crypto investment company blog..