BITCOIN over $9000!! Bullrun or Rocketship?

Boxmining avatar Boxmining
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Description

Bitcoin and other cryptocurrencies rallied very strongly yesterday and today as we approach the Bitcoin Halving (12 days left). We look at what happened in terms of trade volume, technical analysis (b...

AI Analysis

Bitcoin markets are making some wild moves, with prices nearly touching $9,000, driven by significant bullish momentum and increasing trade volume ahead of the halving. Meanwhile, there are exciting developments on the Ethereum front with Ethereum 2.0 testnet validators now live, offering a glimpse into future staking opportunities. Discussions also delve into China's new digital currency, DCEP, and critical considerations for decentralized finance (DeFi) security.

Here’s a deeper dive into what’s happening:

* Bitcoin prices recently surged, showing lots of green, with Bitcoin moving up almost 10% and nearly reaching the $9,000 mark. It was interesting to see this bullish momentum coming from Asia, as typically the West is more bullish.
* Analyzing the charts, multiple "bull flags" were appearing, indicating incremental jumps in price, accompanied by huge spikes in trading volume.
* Prior to this surge, there was a lot of uncertainty in the market. Bitcoin had been in an ascending wedge, holding at the top end for days, with decreasing volume. This uncertainty stemmed from the upcoming halving, which could either cause FOMO (fear of missing out) leading to upward momentum or a sudden downward squeeze on over-leveraged long positions.
* An unconventional strategy was adopted using FTX "move contracts." These contracts are special because their value increases if the price of the underlying currency moves, regardless of the direction (up or down).
* The strategy involved accumulating these move contracts, providing protection for existing "hodl" positions. If Bitcoin prices dropped, the move contracts would still increase in value, mitigating losses. If prices went up, the contracts still benefited from the movement.
* Once prices started to move, the move contracts were sold early to cash out profits. Even though they were sold a little early, it was a successful strategy for managing risk and capitalizing on volatility.
* Bitcoin got rejected twice at $8,950, just shy of $9,000, and is now entering a new, somewhat uncertain channel.
* There was a huge amount of trade volume yesterday, particularly on leverage-focused exchanges like Binance Futures, OKEx, and BitMEX, which were processing billions of dollars in 24 hours. This suggests many people are entering over-leveraged positions, potentially leading to further spike actions.
* CME Futures, often covered by mainstream media, don't actually play a significant role in Bitcoin's market movements. Their volume yesterday was only around $15 million, which is negligible compared to the billions traded on major crypto derivative exchanges.

### Ethereum 2.0 Updates

* Ethereum 2.0 is the biggest news, bringing a massive set of upgrades to address scalability issues and impact the network's economics.
* The significant news is that actual code has been released, allowing people to run testnet validators right now, proving that progress is being made beyond just talk.
* A personal Ethereum validator node was set up, which is currently earning 0.0137 testnet ETH daily. This demonstrates the future potential for earning real ETH by staking and validating the network.
* A full video explaining Ethereum 2.0 in detail is in preparation, highlighting its importance and what to expect.

### China's Digital Currency (DCEP)

* There was a recent discussion with Matthew Graham from Sino Global Capital about China's digital currency, DCEP (Digital Currency Electronic Payment).
* The discussion highlighted contrasting views on DCEP's impact. Some believe DCEP could advance blockchain adoption by creating bridges between the digital renminbi and various blockchain projects.
* However, Matthew Graham holds a more cautious view, emphasizing that DCEP could introduce significant control elements by the Chinese government, especially concerning larger transactions, which requires careful monitoring.

### Decentralized Finance (DeFi) Security

* An upcoming webinar will focus on the crucial topic of decentralized finance (DeFi) security.
* DeFi is a key objective for Ethereum and other smart contract platforms, but it comes with risks because "code is law," meaning vulnerabilities can be exploited by hackers, as seen in incidents like the D-Force hack.
* The webinar aims to gather security experts to discuss how to ensure that these decentralized contracts remain secure once they are published and in use by the community.

Transcript

Hey guys, it's Michael and welcome back to Box Mining. As you can probably see by the smile on my face, Bitcoin prices made some drastic moves yesterday. And in fact, if you just look at this mini chart here, it's a lot of green. In fact, we had Bitcoin moving up almost 10% and nearly, almost just barely touching that 9,000 mark. So we're almost ready to get those over 9,000 memes ready, but not just quite yet. So this video, we're going to talk and touch a lot about what's happening with Bitco...