(Wed) Bitcoin BREAKS 18,000! Bears Exhausted.

Boxmining avatar Boxmining
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Latest Bitcoin and Cryptocurrency news and trends. We take a look at the key events affecting the blockchain sector and review market movements. Combining both fundamental analysis and technical analy...

AI Analysis

The crypto market is on fire, with Bitcoin surging past $18,000, signifying a major shift in market sentiment. This momentum is attributed to exhausted bears and a growing accumulation by large institutional players, leading to a strong bullish outlook. The video also delves into Ethereum's resilience and its path towards Ethereum 2.0, alongside the immense potential of decentralized finance (DeFi) and NFTs, offering insights into investment strategies and cutting-edge projects.

* Bitcoin's Explosive Rally and Market Dynamics:
* Bitcoin recently broke past $17,000 and even touched $18,000 with surprising ease, igniting massive excitement across social media, where it even trended #1 on Twitter.
* The prevailing sentiment in the crypto space is overwhelmingly positive, with Bitcoin continuously shattering previous resistance levels.
* The "bears"—those who believed Bitcoin would crash—are a rapidly diminishing group. They've had ample opportunities to sell for years, but now, major institutional funds have been accumulating Bitcoin and show no intention of selling, contributing to its current "insane" price levels.
* Technical analysis (TA) proved effective as Bitcoin definitively broke out of a long-term channel characterized by higher lows and higher highs, signaling its entry into a completely new price zone.
* While bears tried to establish resistance around the $17,800-$18,000 mark, bulls are aggressively holding new ground and don't anticipate a significant price drop.
* The delayed effect of Bitcoin's halving, which occurred roughly six months ago, is now strongly impacting the market. The halved supply of newly minted Bitcoin forces large buyers to purchase directly from the open market, rather than from miners, which creates significant upward price pressure.
* Interestingly, despite the aggressive price surge, general public interest in Bitcoin (as indicated by Google Trends) has not yet spiked to 2017 levels. This suggests that the current rally is primarily driven by institutional accumulation and a severe lack of selling pressure from major holders, rather than widespread retail "fear of missing out" (FOMO).
* Institutional sell-side volume is exceptionally low, indicating that virtually no major players are looking to offload their Bitcoin holdings at current prices.
* A potential re-entry into lockdowns in the US or other regions could further fuel Bitcoin's price. People confined to their homes often seek investment opportunities, and crypto has proven to be a fertile ground for this, as evidenced by increased interest in stock and crypto trading during previous lockdowns.

* Ethereum's Resilience and the Future of DeFi:
* Ethereum's price action is closely mirroring Bitcoin's upward trajectory, demonstrating strong bullish momentum.
* A significant event was Uniswap concluding its liquidity mining rewards, which resulted in a massive $1.5 billion withdrawal of assets from various liquidity pools (e.g., ETH/DAI, ETH/USDC, ETH/USDT, ETH/WBTC).
* Despite widespread fears that this withdrawal would lead to an Ethereum dump, it did not happen. This indicates that larger institutional players are committed for the long term and aren't simply exiting their positions.
* The reduced liquidity in Uniswap pools (with the ETH/USDT pair, for example, dropping from $535 million) is viewed as a positive factor for Ethereum's price, as lower liquidity can make it easier for the price to move upwards with sustained buying pressure.
* The focus is now on Ethereum 2.0 (ETH 2.0). For its Phase 0 launch (the initial stage) on December 1st, a staggering 705,248 ETH (worth over $251 million) needs to be deposited into the ETH 2.0 staking contract by November 24th.
* The required ETH is steadily being deposited, and it's anticipated that the rate of deposits will significantly accelerate as the deadline approaches, especially now that Uniswap's incentives have ceased.
* It's important to note that deposited ETH will be locked for approximately two years. In its initial Phase 0, ETH 2.0 will primarily serve to validate the network and earn passive income for stakers; transactional capabilities will only be introduced in later phases (Phase 1 for sharding, Phase 2 for smart contract execution).
* Decentralized Finance (DeFi) currently enjoys significant hype and is seen as having more long-term potential ("legs") than NFTs.
* The DeFi ecosystem is becoming incredibly robust, offering on-chain exchanges like Uniswap, various borrowing and lending platforms (e.g., Compound, Aave, Cream), and powerful crowdsourced liquidity pools. This built-in infrastructure makes it highly attractive and easy for new projects to launch and leverage these services directly on the blockchain, bypassing the complexities of traditional financial markets.
* NFTs are also evolving beyond simple digital collectibles. They can now be fractionalized, meaning an NFT representing a real-world asset (like property) can be split into millions of smaller portions, allowing anyone to invest with as little as 25 cents.
* The current blockchain boom is likened to the dot-com era: a period of immense innovation accompanied by significant chaos and numerous scammers. The key is to identify genuine projects and brilliant minds amidst the noise.

* Personal Investment Strategy and Notable Projects:
* Bitcoin accumulation is largely complete, and the presenter is enjoying the current market gains without selling yet. However, there's a plan to dollar-cost average out of the market at a slow rate once conditions become "very positive," considering entry points ranged from $4,500 to $14,000.
The primary focus for future investment is on altcoins, but only after* the Bitcoin rally starts to slow down. This is expected to usher in an "altcoin shine," a period when altcoins significantly outperform, similar to previous DeFi waves.
* Wootrade ($WOO) is a key investment. It aims to revolutionize exchanges by aggregating liquidity from various platforms, allowing for large trades without causing significant market price fluctuations. Wootrade utilizes advanced AI models to classify trading activity (e.g., retail, institutional, market maker) and predict Bitcoin's short-term movements, described as "next-level high-IQ plays."
* FTX and Sam Bankman-Fried (SBF) are highlighted. FTX is considered a leading derivatives exchange, praised for its non-predatory trading systems and diverse offerings, including novel "Trump go/stay" contracts and recently, US stock trading for non-US customers. SBF, who runs FTX and the investment fund Alameda, is deeply respected for his exceptional intelligence and strategic plays in the DeFi space, despite being a sometimes controversial figure.
* Ankr ($ANKR) and Stkr are being closely monitored. They offer decentralized staking services for ETH 2.0. Stkr has already facilitated over 1,273 ETH in deposits. Manual staking for ETH 2.0 is described as a "pain," making these automated services highly appealing.
* Regarding specific DeFi coins, the presenter is looking for those "on sale," acknowledging missing the optimal re-entry point for YFI at $8,000 (now $23,000). Other projects being considered include Chainlink, TrustSwap (where he is an advisor, noting its recovery after a previous dump), and CyberFi (entered at a lower rate, with awareness of upcoming token unlocks).
* The presenter generally avoids providing specific price targets, believing they can be misleading and foster speculative hype rather than understanding a project's fundamental value. However, he casually stated he'd be "happy" if Ethereum reached $800 by the end of 2021, though he expects it to go higher, preferring to "under promise and over deliver."

* Community Engagement and Educational Resources:
* A strong emphasis is placed on the importance of kindness and helpfulness towards new entrants in the crypto space, especially during a bull run. This is crucial given the prevalent toxicity, tribalism, and misinformation that can be found in the community.
* To aid in education and staying informed, the "Boxmining Bitcoin Out of the Box" podcast is recommended for in-depth interviews exploring the crypto space. The Boxmining newsletter offers bi-weekly summaries and market overviews, while the Telegram announcements channel provides daily community-driven updates.

Transcript

of box mining today is a surprise a live stream i promise you guys there's gonna be more live streams this week because we have so much action happening we've got bitcoin breaking past 17 000 it feels so strange to say this number i'm still not used to it it was just like bam yesterday night boom in the u.s markets when those u.s markets are up we just saw bitcoin break past 17k with ease almost hitting up to 18 000 there was a lot of excitement on twitter too so in terms of tweet activity bitc...