[Daily Discussion] - Tuesday, July 06, 2021 Bitcoin Markets |
- [Daily Discussion] - Tuesday, July 06, 2021
- Bitcoin On-Chain Data Shows Possible Undervaluation of BTC Price
- “The market is waiting for a pivot point.” What will happen to Bitcoin in July?
- Bought my first Bitcoin!!
| [Daily Discussion] - Tuesday, July 06, 2021 Posted: 05 Jul 2021 09:00 PM PDT Thread topics include, but are not limited to:
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| Bitcoin On-Chain Data Shows Possible Undervaluation of BTC Price Posted: 05 Jul 2021 01:12 PM PDT A Bitcoin on-chain metric, the Puell Multiple, temporarily fell to the "undervalued zone" before snapping back as BTC prices recovered, data from GlassNode on July 5 shows. The Puell Indicator Falling in lockstep with Bitcoin Hash Rate According to a screen-grab, the indicator has been used by on-chain analysts to pick out bottoms on several occasions. Often, sharp contractions to undervalued zone precedes a fulfilling rally in a price action equilibrium discovery where Bitcoin's value is repriced significantly higher. However, the correction of the Puell Multiple—an indicator by David Puell—can be used to pick out deep undervaluation of Bitcoin prices caused in part primarily by disturbances in the critical Bitcoin mining scene. Typically, the indicator is a ratio between the daily BTC emission in USD and the 365-day moving average of the issuance value. Whenever the ratio falls below 0.5, analysts interpret it to mean BTC in circulation is comparatively cheaper than historical standards. Aforementioned, the indicator has been used before with great accuracy. Specifically, the coincidence of critical events in Bitcoin's history with the deep contraction of the Puell Multiple below 0.5 offers guidance. In one way, the indicator can be highlighting the level of miner liquidation. Often a sell-off within normal ranges won't drastically affect BTC price movements. However, in extraordinary cases, miners rushing to exchanges and liquidating their stash could mean duress. In turn, this often is subsequential to the entire BTC and crypto mining ecosystem. Cryptocurrency Mining in China Analysts are pinning the fall of the Puell Multiple to the crackdown of crypto and Bitcoin mining activities in China. Over the past few weeks, mining hubs in various regions, including Xinjiang and Sichuan, as BTCManager reports, were ordered to close down. This, in turn, had a profound effect on the Bitcoin network's hash rate—a metric used to measure the platform's computing power and, by extension, miner commitment. Bitcoin hash rate plunged from 171 EH/s to around 55 EH/s by the tail-end of June. This has since recovered, but the effect can be felt, especially as there were delays in transaction confirmation times before the relieving mining difficulty adjustment. Following the recalibration over the weekend, the Bitcoin network eased the hash rate by 28 percent, making mining relatively easier and profitable. https://btcmanager.com/bitcoin-on-chain-data-undervaluation-btc-price/ [link] [comments]  |
| “The market is waiting for a pivot point.” What will happen to Bitcoin in July? Posted: 06 Jul 2021 06:38 AM PDT Bitcoin failed to overcome the mark of $36k again, then its rate rolled back. Why the price of asset may fall to $23k and in what case it will rise to $47k? On Monday night, the rate of Bitcoin reached the mark of $35.9k, after which it began to decline. As of 20:10 EEST time, the price of the first cryptocurrency is $33.6k — it has fallen by 5% over the past 24 hours. Bitcoin continues to maintain the downward trend, the next levels of $27k and $23k, says Anton Kravchenko, Xena Financial Systems CEO. According to him, the rate of decline has slowed significantly and the market is waiting for the turning point, but it is not yet known at what level it will happen. Cryptorg crypto exchange CEO Andrey Podolyan has a contrary opinion, who does not expect bitcoin to update the local minimum. Podolyan believes that some big players have already accumulated enough volume to buy in the area of $30–33k and in July at the breakdown of $36k upward a powerful impulse movement with the first target around $40–41k and the second target around $45–47k should develop.
Without favorable signals crypto market will remain volatile, there may be small fluctuations both up and down, head of analytical department of AMarkets Artem Deev added. According to him, one of the drivers for short-term growth from the current $34.5k to $37–38k dollars may become information from reports on the U.S. labor market or interest in the cryptocurrency from large investors. They remain silent so far, assessing the risks of stricter legislation in developed countries (for example, states may follow the example of China), Deev says. Summer is a period of low activity, so the director of the financial company Newcent Vladimir Smetanin suggested that in July bitcoin will remain in the corridor of $30–40k, as all the positive and negative news have already played out. Earlier, Santiment analytical service reported that Bitcoin volume on cryptocurrency exchanges fell to a six-month low. Analysts believe this should be seen as a "promising sign" that points to a reduced risk of larger sales of the cryptocurrency. Typically, a decline in bitcoin stocks on cryptocurrency exchanges indicates the accumulation of digital coins by large holders (called "whales"). Santiment analysts reported in June that "whales" continue to buy up cryptocurrency. [link] [comments]  |
| Posted: 06 Jul 2021 01:15 AM PDT |
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