Panic continues to spread in the market while Web3.0 rises from the chaos
Rainbow Bitcoin Weekly 21.12.13
The crypto market has been rapidly fluctuating since the last Bitcoin weekly analysis. After rushing high and falling back last Friday, the market fluctuated upwards last weekend.
Currently, the price of BTC stays below $50,000. The shorts continue to exert their force today to retreat at around $45,700. The downward trend of the K-line opening has been opened and continues, the moving averages are arranged in a short position, and the 4-hour level MCAD crosses down below the 0 axes.
It seems that all indicators are biased towards the short position. According to the current data monitoring, major exchanges have hoarded a large amount of USDT, which may bring about the next wave of pull signals. What is worth noticing is that the $49,000 line of resistance and the support line of $44,000. Investors need to control the risks, set up positions carefully, and stay sharp to prevent more loss in time.
On the news level, the major Chinese mainland institutions have successively made many Chinese mainland stock users quit the market, causing a certain degree of panic. The selling pressure continues, and investors need to keep paying attention to the orderly clearing of their encrypted assets. The above content does not constitute investment advice and it can only be considered as advice.
What’s happening last week — —
l The Chinese central TV channel of finance: Trading volume of Metaverse estate booms to over 100 million U.S dollars.
l U.S. Congressional Encryption Hearing has declared that Web3.0 shall become the future of the Internet.
l The German depository bank — Sparkasse is planning to launch the cryptocurrency trading service in 2022.
l The HSBC and the Wells Fargo bank starts to apply blockchain technology for forex trading calculation.
The recap of the additional data analysis for last week is down below.
Number of on-chain Bitcoin Transactions
The number of Bitcoin on-chain transactions has shown a certain degree of decline. Last week’s highest number of transactions has reached 250 thousand transactions which is a 25 thousand decrease compared to the week before. Last week’s lowest number of transactions has decreased to 214 thousand transactions. The overall trend is still rapidly growing upwards. The number of transactions has been slowly increasing since February 2018.
The number of on-chain Bitcoin transactions symbolizes the core value
and is also being an important supporting factor of Bitcoin market
price. Currently, the Number of On-chain Bitcoin transactions is showing
rapid growth in the short term.
Hash rate of Bitcoin
Last week’s average Hash rate of Bitcoin has been relatively flat compared to the week before which is a relatively high level in recent time. The highest has reached 190 Ehash/s while the lowest has reached 177 Ehash/s.
The value of the Bitcoin hash rate among the whole network has been doubled since the low point in June this year. Hash rate is considered as the basis of Bitcoin since it directly affects the market price of Bitcoin. It is fair to say that the hash rate is the core stone of Bitcoin’s long-term value.
Bitcoin Supply on Exchange Wallet
Last week’s reserved amount of Bitcoin upon each mainstream exchange has been decreased by 23 thousand resulting in a total of 1,283,827 Bitcoins. The selling pressure has decreased compared to the week before. The total BTC supply of mainstream exchange wallets has decreased by 0.1% resulting in 6.1% last week.
The supply of Bitcoin among exchange wallets is a vital index to monitor the trajectory of Bitcoin’s market price. The net inflow foreshadows the large pressure of selling off their Bitcoin while the net outflow indicates that the investors are more likely to hold their Bitcoin.
The open interest in the grayscale trust
Diagram 1: Grayscale Trust Open Interest
Diagram 2: BTC-Grayscale Trust OTC Premium Rate
The grayscale BTC Trust has underweighted 249 Bitcoins in the last 7 days which
results in underweighting 990 Bitcoins in the last 30 days. The rate of
underweight remains steady. The Grayscale BTC trust has remained outflowing
since March 3rd.On December 11, the Grayscale BTC trust open interest is
645,552 and the GBTC premium index is -17.08%.
USDT Premium Rate
The USDT premium rate last week has decreased to 1.00060148. Compared to the week before, this is a relatively large decrease. Based on the diagram, the future premium rate shall remain at this level for a certain period.
The USDT premium index is the ratio of USDT/USD, and it reflects the volume of fund which enters the market.
Fear & Greed Index
Last week’s fear & greed index kept fluctuating in a relatively low interval. However, the index is calling back a little compared to the week before. The fear & greed index last week is nearly 28. The investors can still be considered upset about the market but not as much as the week before. It is recommended to add positions rationally but please manage the investments carefully and stay focused on risk control.
Fear & Greed Index, also known as VIX (Volatility Index). It is originally a stock market index containing many factors such as market volatility, market trading volume, social media heat, and Google buzzwords analysis. The threshold of this index is 0 to 100. The lower index indicates the investors are more likely to sell while the higher index indicates the investors are more likely to hold. Fear & Greed index can be used to predict the potential risk for helping to make investment decisions. An extremely low fear & greed index could bring potential opportunities for buying while an extremely high fear & greed index could bring massive change to the market.
Google Search Trend
The search volume of the word “Bitcoin” has remained constant compared to the week before and so are the other related buzzwords. The search volume of the word “Bitcoin” is 76 last week.
This article is NOT in any form an investment recommendation, please research carefully before you make any investment decisions. The price of bitcoin is $49,000 while this article is being written.
Written on 2021.12.13