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Bitcoin Fear And Greed Index Newsletter - Issue #39

Bitcoin Fear And Greed Index Newsletter - Issue #39
By Bitcoin Fear And Greed Index • Issue #39 • View online
Welcome to this week’s issue of Bitcoin Fear and Green Index Newsletter. It is a community-driven effort, and we all hope to see this newsletter grow with quality insight and analytics from community contributors like yourself. Read till the end to learn how you can participate.

Current Bitcoin Fear and Greed Index
This week’s Technical Analysis
Bitcoin - Bottom Rediscovery
Bitcoin - Bottom Rediscovery
This past week, Bitcoin closed its first weekly green candle in over 2 months. In doing so, Bitcoin formed a bullish setup that could send it into a relief rally. In today’s newsletter, I will discuss the bullish implications behind the recent weekly close, and the potentiality of a bottom rediscovery.
Bottom Rediscovery:
Before we dive into the bullish case, I think it’s important that we look at the macro scale of things.
Bitcoin doesn’t typically wick down once when establishing a bottom. On the contrary, we usually see several capitulation wicks around a fixed range before ultimately breaking that range and rediscovering a true bear market bottom.
The chart above illustrates a fractal taken from the 2017/2018 price action. The numbers mean:
1: Cycle Top.
2: Range Bottom.
3: Initial Relief.
4: False Bottom.
5: Second Relief.
6: Range Bottom Revisit.
7: Third Relief.
8: Bear Market Bottom.
Looking at Bitcoin in 2021/2022, it becomes clear just how similar the price action looks to that of 2017/2018. Even though 2021’s dead cat bounce (3) to $69,000 could be interpreted as the cycle top, several technical/momentum oscillators indicate that the move to $69,000 lacked fundamental integrity, essentially rendering it as no more than a relief rally/dead cat bounce.
With that in mind, the 2017/2018 fractal becomes significantly similar in structure to that of the current cycle. Especially when looking at (2), (4), and (6), we notice a distinct resemblance between both cycles with regard to how Bitcoin:
  • Established a range bottom.
  • Drew a false bottom(higher low).
  • Revisited the range bottom.
Those 3 steps become essential when trying to project future price action and more specifically, a cycle bottom. Now that Bitcoin has already revisited the range bottom, the 200 week moving average comes to mind. Historically, every Bitcoin cycle involved a revisit to the 200 week MA, typically establishing a bear market bottom at this average.
The 200 week moving average currently stands around $22,000. I see this level being visited within a couple of months, at most.
That being said, one part of the fractal remains missing.
The final relief (7). This move basically represents that last push towards a bull market recovery which doesn’t end up panning out. The final bear market rally.
It’s important to remember that in this situation, market makers tend to give a lot of leeway to the upside as it grants them a better opportunity to find more liquidity as the market sentiment becomes extremely dissonant. This basically translates to a relief rally that takes market participants by surprise with regard to its abrupt start and sharp trajectory.
Sultan 👑
#Bitcoin - Inverted Hammer On The Weekly

With the weekly close being several hours away, bullish implications can be drawn from the inverted hammer at the RB.

The under-extension from the weekly mean also further supports the bullish thesis.

Relief is inevitable.

The tweet above illustrates a weekly green candle taking form and breaking the streak of what could’ve been 10 consecutive weekly red candles.
What’s more important is the type of candle that materialized. As Bitcoin closed the week green, the weekly candle that formed was an inverted hammer, a bullish reversal candle pattern.
This formation further supports the case for a bear market rally, especially when considering that the candle took form at the bottom of the macro range and after the price’s significant under-extension from its weekly mean.
An initial target for the rally would fall in the immediate Area of Value between $34,000 and $35,000.
That said, I wouldn’t be surprised if Bitcoin clears $37,500 and $40,000 in June as well. Both targets would fall in line with what a typical bear market rally would look like.
Currently, the market maker’s main objective is to bring back enough hope into the market, just enough to where the overarching sentiment becomes considerably greedy. That is when market makers find their liquidity. Overleveraged positions and overzealous market sentiment.
For that to materialize, a $35,000 Bitcoin would not be sufficient to bring back enthusiasm into the market. Somewhere around the high 30s and low-to-mid 40s would do the job.
Key is $40,000
That’ll be the psychological level where the market sentiment pivots, and participants begin overextending their bets. I would pay close attention if Bitcoin surpasses $37,500 and starts approaching $40,000.
Anywhere around $40,000 would be a dangerous level to start bidding, in my opinion.
Sultan 👑
#Bitcoin Priming For a Short Squeeze

The bears' failure to recapture the range lows demonstrates weakness in their momentum.

With that in mind, a revisit to the RL now would be the most optimal long entry as the bullish momentum is taking over.

Rally is inevitable.

The tweet above demonstrates a scheme in which Bitcoin breaks the range highs, tests key resistance at $31,500 for a breakout confirmation/invalidation, and continues into the Area of Value.
Note the breakout confirmation zone.
Bitcoin - Breakout Invalidated
Bitcoin - Breakout Invalidated
The chart above shows Bitcoin failing to recapture resistance at the breakout confirmation zone ($31,500) twice. This signifies that a retest of the new range low at $29,300 is most likely.
That said, Bitcoin’s bullish momentum is slowly but surely taking over as we see a new range low ($29,300) being established and the previous range high ($30,800) being broken.
Even a break of the new range low and into $28,600 wouldn’t change my macro perspective. This move would only signify a light reset as Bitcoin primes for its bear market rally. I’d be personally placing my bids around the aforementioned break, if it comes.
This is my personal opinion. It shouldn’t be taken as financial advice.
With that said, have a bullish week, until we meet again.
TA review by @CryptoSultan21
Bitcoin Adoption News This Week
  • One Of Panama’s Largest Banks Just Became Bitcoin-Friendly
  • Bitcoin Miner Bitzero To Build $500 Million Headquarters In North Dakota
  • Kenya’s Largest Power Provider To Offer Geothermal Energy To Bitcoin Miners
  • Human Rights Leaders Pen Letter To US Congress For Responsible Bitcoin Legislation
  • PayPal Now Allows Bitcoin Transfers To External Wallets
  • Achieva Becomes Florida’s First Credit Union To Allow Customers To Buy Bitcoin
One Of Panama’s Largest Banks Just Became Bitcoin-Friendly
Towerbank, a top 30 banking institution in Panama, just declared itself bitcoin-friendly in an announcement on Twitter from Cristobal Pereira, the executive director of the Latam Blockchain Summit, the meetup where Towerbank made the announcement. Following the announcement from Pereira, Towerbank’s Twitter account confirmed the announcement by stating “Towerbank, in Panama, opens its doors to bitcoiners and cryptocurrency investors,” and then followed up with a laser-eyed meme of its headquarters. A video released by the Blockchain Space Instagram account shows Towerbank’s vice president of product, Gabriel Campa, explaining the institution is studying bitcoin and other cryptocurrencies. Campa further explained “And we hope to have something soon to offer our customers,” referring to product offerings for bitcoin-based products. Campa continued by stating “We want to work with you and know what we can create to help you be part of this new world.”
Bitcoin Miner Bitzero To Build $500 Million Headquarters In North Dakota
Bitzero Blockchain Inc., a 100% renewable bitcoin mining company, is making North Dakota the central headquarters for its North American operations. The miner distilled the plans on Thursday in a joint press release with the governor of North Dakota’s office and notable investors such as Kevin O’Leary. Company officials stated plans to invest $400-$500 million in the upcoming data center and also announced plans to partner with MHA Nation’s greenhouse project which will allow heat from Bitzero operations to be used for food production throughout the year. “It helps Main Street, it helps every citizen, it takes our state off the dependence of being, as we have been for over 100 years, dependent on revenues at the state level,” said North Dakota’s Governor Doug Burgum. While the location of Bitzero’s headquarters has yet to be announced, the CEO stated it will likely be located in Bismarck or Fargo and will employ 15-20 people for operations. The bitcoin mining company has plans to build out 200 megawatts (MW) of power in data centers over the next two years. In addition to the data centers, the company also plans to develop an assembly and distribution hub for graphene batteries technology which is expected to represent a $200-$500 million investment over the next two to three years. Currently, Bitzero has raised $100 million through investment capital with plans to launch a Canadian initial public offering (IPO) within the next 60 days.
Kenya’s Largest Power Provider To Offer Geothermal Energy To Bitcoin Miners
KenGen (Kenya Electricity Generating Company PLC), the leading supplier of electricity in Kenya, wants to provide excess geothermal power to bitcoin mining companies, according to a report from Quartz Africa. “We have the space and the power is near, which helps with stability,“ KenGen’s geothermal development director, Peketsa Mwangi reportedly explained in an interview. Kenya is the top producer of geothermal energy in Africa delivering over 14,000 megawatts (MW) of power with an equipment capacity of only 863 MW. Along the Rift Valley circuit alone, an estimated 10,000 MW of geothermal energy lies largely dormant. Miners looking to take advantage of this offering have already approached KenGen to discuss the offer and “Some have requested to start with 20 MW and upscale later,” said Mwangi. Considering there are no bitcoin mining firms currently in Africa, it is reported that those interested in the offering are expected to be mainly from the U.S. or Europe.
Human Rights Leaders Pen Letter To US Congress For Responsible Bitcoin Legislation
An open letter of support for responsible bitcoin and stablecoin policy was released today, signed by 20 human rights leaders from 20 different countries, asking the U.S Congress to consider the far-reaching implications of irresponsible legislation. The announcement came from Alex Gladstein, chief strategy officer of the Human Rights Foundation. “We write to urge an open-minded, empathetic approach toward monetary tools that are increasingly playing a role in the lives of people facing political repression and economic hardship,” the letter explained. “We are not industry financiers or professional lobbyists but humanitarians and democracy advocates who have used Bitcoin to assist people at risk when other options have failed.” The letter is a direct response to another letter, recently penned by 1500 computer scientists, software engineers, and technologists asking for “responsible” legislation for bitcoin and other cryptocurrencies. The latter, however, stated that the signatories disagree with any narrative claiming bitcoin or stablecoins are positively affecting financial innovation.
PayPal Now Allows Bitcoin Transfers To External Wallets
PayPal, a financial services giant, has enabled customers to now send, receive and transfer bitcoin and other cryptocurrencies between wallets and exchanges, in a press release from the company. The financial services company noted in the release that this has been the most consistently requested feature since it began allowing users to purchase bitcoin on the platform in 2020. Whether customers choose to send their bitcoin to an exchange, hot wallet, or hardware wallet, those users will now have the choice of self-custody. “Allowing PayPal customers the flexibility to move their crypto assets [bitcoin and other cryptocurrencies] into, outside of, and within our PayPal platform reflects the continuing evolution of our best-in-class platform and enables customers to interact with the broader crypto ecosystem,” said Jose Fernandez da Ponte, Senior Vice President, and General Manager. PayPal also noted that it has been granted a BitLicense, a New York requirement for bitcoin and other cryptocurrency-focused businesses, making the company the first to convert a conditional BitLicense to a permanent one. The focus on commerce, rather than operating as an exchange, allows PayPal to function without fees associated with bitcoin transactions. Rather than being a central exchange, PayPal looks toward evolving commerce using tools like Checkout With Crypto, which allows users to interact with millions of merchants worldwide using bitcoin.
Achieva Becomes Florida’s First Credit Union To Allow Customers To Buy Bitcoin
Florida-based Achieva Credit Union became the first credit union to offer customers the ability to buy and sell bitcoin through a new app, according to a report from the Tampa Bay Times. The app reportedly went live this past Tuesday through a partnership with bitcoin bank NYDIG, which specializes in connecting traditional financial infrastructure to the bitcoin ecosystem. Previously, Achieva customers were only capable of making bitcoin trades through third-party applications. Tracy Ingram, chief digital and infrastructure officer at Achieva, explained that integrating the service into the credit union’s proprietary app would give a greater level of access to its customers. In fact, in the past year, Achieva watched as $2.6 million of third-party bitcoin transactions took place, according to Ingram. Customer curiosity since the enabling of these extended services has widely grown for the credit union.
"Hope is like the sun, which, as we journey toward it, casts the shadow of our burden behind us.” - Samuel Smiles
Weekly Bitcoin Adoption By @CuredSausage
Stay Safe & Stack Sats!
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