The price of BTC is unstoppably falling
Rainbow Bitcoin Weekly 22.01.10
Recently, the price of BTC has been kept falling, but there still is the possibility of recovering losses. There are plenty of opportunities in the investment market. When the market is bad, it is recommended to control your mentality and adjust your investment strategy. Remember to not lose your rationality and lead to greater losses. Recently, the trend of BTC seems to be in a downward shock. After failing to reach $42,500, BTC’s price is continually dropping. It once fell below $40,000 and rebounded. The four-hour level has been broken, and it is now in the process of recovering. The relatively strong pressure range is around $43,000. Since the one-hour level broke $45,000, each time it rebounded to a high point, it began to gradually move down. If the short-term rebound ends and falls below 50MA, there will be a chance for BTC to get out of a new round of short market. On the other hand, judging from the data of BTC on-chain, the number of users who hold BTC for the long term does not decrease but increases. The future of BTC is still bright. It is a good opportunity to cover positions from a long-term perspective, although it is not yet an absolute bottom. The above content is for reference only and does not constitute investment advice.
What’s happening last week:
l The three major U.S. stock indexes collectively opened lower, and blockchain concept stocks fell.
l State Council of China: We support the pilot use of digital tokens in retail transactions and other scenarios
l Edison Chen: Possibly to cooperate with Jay Chou to release a joint NFT project before the end of the year. (Edison Chen and Jay Chou are both well-known celebrities in China.)
l Haitong Macro: At present, the conditions for the Fed to raise interest rates are all in place, and interest rate hikes can be started at any time.
l Vitalik Buterin： The world of certified decentralized blockchains is coming.
l Vitalik Buterin： The future will be “multi-chain” rather than “cross-chain” since the cross-chain bridges have basic security restrictions.
l A16z has raised a total of $9 billion in funds for investment in 2021.
l JD.com realizes full-scenario digital RMB payment.
The recap of the additional data analysis for this week is down below.
Number of on-chain Bitcoin Transactions
The number of on-chain Bitcoin transactions did not show any significant change compared to the week before, but the overall number of on-chain transactions is less than before. Last week’s highest has reached 274 thousand transactions which is a slight decrease compared to the week before. The lowest has reached 210 thousand transactions. The overall trend is switching from fluctuating upwards to partially fluctuating downwards. The number of transactions has been slowly increasing since February 2018.
The number of on-chain Bitcoin transactions symbolizes the core value of Bitcoin and is also an important supporting factor of Bitcoin market price. Currently, the Number of On-chain Bitcoin transactions is showing rapid growthin the short term.
Hash rate of Bitcoin
After reaching a partial high point the week before, last week’s average Hash rate of Bitcoin has shown a large decrease. Last week’s average Hash rate has maintained at the level of 175 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 increased by 1904 resulting in a total of 1,313,384 Bitcoins. The selling pressure has increased compared to the week before. The total BTC supply of mainstream exchange wallets have decreased to the level of 6.3% last week.
The supply of Bitcoin among exchange wallets is a vital index to monitor Bitcoin’s market price trajectory. 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
The grayscale BTC trust has underweighted 249 Bitcoin in the last 7 days which is underweight by 1094 over the last 30 days. The rate of underweighting remains steady. The Grayscale BTC trust has remained outflowing since March 3rd. On December 31, the Grayscale BTC trust open interest is 644,500 and the GBTC premium index is -21.48%.
USDT Premium Rate
Last week’s USDT premium rate has shown a significant decrease under the ordinary level. However, it has risen again since yesterday which might possibly signal a call-back. But currently, the USDT premium rate is 1.00030573 which is a relatively low level compared to previous data.
Fear & Greed Index
The fear & greed index still maintains an extremely low level. The investors are much upset about the market. The average index is 21 last week which is a significantly low level of the index in this year. 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 Google search volume of the word “Bitcoin” has shown a significant decrease compared to the week before. 36 is a relatively low level of number. It is not an optimal result as Bitcoin is losing its attention right now.
This article is NOT in any form an investment recommendation, please research carefully before you make any investment decisions. The price of bitcoin is $41,700 while this article is being written.