Bitcoin Fear and Green Index Newsletter. Block 32

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Bitcoin Fear and Green Index Newsletter. Block 32
By Bitcoin Fear And Greed Index • Issue #32 • 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
Bullish Setup on The Weekly Chart
Bullish Setup on The Weekly Chart
This past week, Bitcoin followed through with its rally, setting a new local high at $48,190. In today’s newsletter, I will discuss Bitcoin with regard to the Money Flow Index and the hidden bullish divergence that has taken form on the weekly chart.
Hidden Bullish Divergence:
The chart above illustrates Bitcoin’s price and the MFI (Money Flow Index). The MFI incorporates volume into the RSI, making it a very powerful leading tool, more so than the RSI. While the RSI tracks the momentum of Bitcoin through the lens of price movement and pace, the MFI compares the price with various different evaluations of money flowing in and out of Bitcoin.
Altogether, this makes the MFI a more powerful indicator when looking for reversals or false breaks. Considering how the MFI incorporates volume into the picture, divergences on the MFI become all the more significant, as it broadens the separation between trend strength and the general price perception.
If we look back at the chart above, we’ll notice how Bitcoin formed a series of lows and higher lows, ranging from ~$30,000 back in July of 2021, to ~$34,500 in February of this year. At the same time, the MFI was setting lower lows at each point Bitcoin drew a higher low. This is a hidden bullish divergence.
Regular & Hidden Bullish Divergences
Regular & Hidden Bullish Divergences
The chart above shows Bitcoin and the MFI having a regular bullish divergence between 2019 and 2020, leading up to the bull market of 2021. On the right side of the chart, we see Bitcoin and the MFI forming a hidden bullish divergence.
The main difference between both divergences is that the regular divergence usually takes form at the end of a prolonged trend, signifying a potential correction in the near future. A hidden divergence is usually spotted during a consolidation phase and after the correction of a particular trend.
Considering that Bitcoin hasn’t broken below its 2021 summer low around $28,700, the bearish trend that took place from November 2021 to January 2022 is seen as no more than a prolonged correction phase. January to early March was the consolidation phase, as Bitcoin was bound to a relatively tight range, not closing a single week above $44,400 for approximately 70 days. Altogether, this makes the recent hidden bullish divergence all the more powerful when adding the fact that Bitcoin’s price was in perfect accordance with the standards that validate a hidden bullish divergence
Note that the second chart above was posted on my Twitter profile on the 4th of March, while the first chart was posted on the 31st. The first chart essentially acts as validation of the hidden bullish divergence that was spotted on the 4th. Bitcoin has gained 40% from the second higher low and is showing no signs of weakness. While pullbacks are to be expected during a leg up, my confidence in this bullish reversal is at an all time high.
I expect Bitcoin to break $50,000 in April and rally to ~$57,000 after the fact. What comes next, well, why ruin the surprise? I will keep you updated in future newsletters as the chart reveals more meaningful data.
The bullish momentum has taken off with full force. The cycle is back.
With that said, have a bullish week, until we meet again.
-Sultan
TA review by @CryptoSultan21
Bitcoin Adoption News This Week
This Week In Bitcoin Adoption
TL;DR
  • Wall Street Bank Cowen To Offer Spot Bitcoin Trading
  • Trammell Venture Partners Launches Bitcoin-Focused Institutional Investor Fund
  • Crypto.com Becomes Official FIFA World Cup 2022 Sponsor
  • Bitcoin Is Empowering Marginalized Communities In Peru
  • Russia Is Open To Selling Natural Gas For Bitcoin
  • Exxon Is Mining Bitcoin With Excess Gas
  • Israeli Bank Leumi To Launch Bitcoin Trading
  • Canadian Leadership Candidate Makes Appeal To Bitcoiners
  • MacroStrategy Closes $205 Million Bitcoin-Collateralized Loan From Silvergate Bank To Buy BTC
Wall Street Bank Cowen To Offer Spot Bitcoin Trading
Wall Street investment bank Cowen Inc. has debuted a new digital asset unit to offer spot bitcoin and cryptocurrency trading to institutional investors, Bloomberg reported. The firm leveraged its small footprint to front-run its bigger competitors as the finance hub seeks to embrace the burgeoning asset class’ spot markets. Goldman Sachs executed its first over-the-counter (OTC) bitcoin options trade earlier this week, trying to plug into derivatives-based offerings as uncertainties and complexities around spot products hold back developments. “We have a big first-mover advantage in this space,” Cowen co-president Dan Charney told Bloomberg. “Because of our culture, we’re able to work with our legal and compliance and our regulators in a way that maybe our bigger competitors aren’t, and we’re just able to get to solutions faster.“ Cowen’s new business unit will target mainly the bank’s hedge fund, mutual fund, and family office clients, per the report. Assets purchased by these institutions will be held under the custody of institutional-grade platform Standard Custody & Trust Co. It is unclear whether clients will be able to withdraw any bitcoin they purchase, but given that Cowen will act as a custodian it appears clients will not have that option. Without proper self-custody, those institutions will be limited to the potential price appreciation of the asset and not be able to store wealth without third-party risk or transact value freely. However, such use cases are arguably more compelling for individuals.
Trammell Venture Partners Launches Bitcoin-Focused Institutional Investor Fund
Trammell Venture Partners (TVP) – a venture capital firm focused on both applied artificial intelligence, and security and privacy technologies – launched a Bitcoin-native institutional Investment Fund Series dedicated solely to founders building on the Bitcoin/Lightning network protocol stack, per the press release. “Over the years, the Bitcoin community has rightly been extremely cautious about making changes to Bitcoin Core, but the development of Bitcoin’s protocol stack layers has been steady,” says Christopher Calicott, TVP Managing Director, and founding partner. “We’ve been waiting for the right moment to lean into our North Star: Bitcoin.” TVP launches this initiative with the first institutional feeder fund of the venture capital industry-focused purely on Bitcoin. This feeder fund will serve as a collective effort of the involved investors in a way that allows the investors to avoid the need for liquidation of their bitcoin. ”Investors should never have to liquidate bitcoin to invest, and at an institutional level that begins with our novel feeder fund approach,“ states Dustin D. Trammell, TVP founding partner. The commencement of new values across the institutional investor class remains at the forefront of TVP’s initiatives in driving institutional adoption of Bitcoin and its commonly associated long-term values. “Safe, secure return and yield from pristine collateral is the future for long-term holders of bitcoin,” says Founder Calicott. The venture capital firm intends to hold Bitcoin at its core values, including the values of investors who choose to participate in the fund. One prolific angel investor in Bitcoin, Stephen Cole, joined TVP as a venture partner intended on sourcing funds and spoke to the new partnership.
Crypto.com Becomes Official FIFA World Cup 2022 Sponsor
Crypto.com is officially a sponsor of the FIFA World Cup Qatar 2022. They will be the exclusive bitcoin and cryptocurrency trading platform for the event, per an announcement from FIFA. “Crypto.com has already demonstrated a commitment to supporting top-tier teams and leagues, major events, and iconic venues across the world, and there is no platform bigger, or with a greater reach and cultural impact, than FIFA’s global platform of football,” says Kay Madati, FIFA’s Chief Commercial Officer in the announcement. Considering the track record of Crypto.com, this announcement is received as somewhat expected news. With partnerships in motorsports, basketball, football, ice hockey, MMA, becoming the exclusive cryptocurrency trading platform for men and women’s football in Australia, FIFA seems to be a logical next step for the colossal brand. “We could not be more excited to sponsor the FIFA World Cup, one of the most prestigious tournaments in the world, and to drive further awareness of Crypto.com globally,” stated Kris Marszalek, Co-founder and Chief Executive Officer of Crypto.com. “Through our partnership with FIFA, we will continue to use our platform in innovative ways so that Crypto.com can power the future of world-class sports and fan experiences around the world.” Crypto.com generated massive headlines last November when, along with AEG, the company acquired naming rights for the legendary Los Angeles venue formerly known as the STAPLES Center. This would lead to the eventual naming of the Crypto.com Stadium that following Christmas. As the branding behemoth continues its immense growth, it leaves one to wonder where their name will be popping up next. “We are delighted to have a global brand like Crypto.com join us as a sponsor of the exciting and groundbreaking FIFA World Cup in Qatar, ultimately helping to grow our beautiful game on a global scale,” says Madati, CCO of FIFA. The momentous FIFA World Cup Qatar 2022 is being held from the 21st of November to the 18th of December 2022.
Bitcoin Is Empowering Marginalized Communities In Peru
What started as a simple, one-time $3,000 effort to buy shoes and socks for Peruvian children facing high mortality rates quickly grew into a full-scale effort focused on enabling financial empowerment through Bitcoin. After a visit to Bitcoin Beach, the non-profit initiative that strives to bring financial inclusion to the coastal city of El Zonte in El Salvador through bitcoin circular economies, Rich Swisher, co-founder and president of non-profit global empowerment group MOTIV, saw the many opportunities that a sovereign and decentralized monetary network had to empower those who have been left out of the traditional banking system. Now, through a series of programs ranging from medical care to entrepreneurship classes, MOTIV is leveraging Bitcoin to bring inclusion and hope to disadvantaged communities through 15 hubs in Peru. “There is an outstanding alignment between Bitcoin and humanitarianism,” Swisher told Bitcoin Magazine. “Being able to have unobstructed access to a financial system that is not seizable and not able to be shut off by changing governments is key for people to build hope.”
Russia Is Open To Selling Natural Gas For Bitcoin
Russia is open to accepting bitcoin for the exports of its natural resources, the chairman of the country’s Congressional energy committee, Pavel Zavalny, said in a press conference. Zavalny explained that Russia is open to accepting different currencies for its exports, beginning with natural gas, depending on the buyer’s preferred method of payment. However, the chairman said terms will depend on the importing country’s foreign relations status with Russia. “When it comes to our ‘friendly’ countries, like China or Turkey, which don’t pressure us, then we have been offering them for a while to switch payments to national currencies, like rubles and yuan,” Zavalny said during the press conference. “With Turkey, it can be lira and rubles. So there can be a variety of currencies, and that’s a standard practice. If they want bitcoin, we will trade in bitcoin.” Zavalny’s statement comes on the heels of President Vladimir Putin’s comments demanding that ‘unfriendly’ countries pay for Russian gas in rubles. Putin’s message was clear, but it is unclear whether Russia can unilaterally change existing contracts agreed upon in euros. The State Duma’s energy committee chair echoed Putin’s decision while adding that the country should also accept gold. “When we exchange with Western countries…they should pay in hard money,” Zavalny said. “And hard money is gold, or they must pay in currencies which are convenient for us, and that is the national currency – ruble. That relates to our ‘unfriendly’ countries.” Russia is open to accepting bitcoin to shift the tide as Putin last year had dismissed the possibility in an interview at the Russian Energy Week event in Moscow.
Exxon Is Mining Bitcoin With Excess Gas
The largest U.S. oil producer Exxon Mobil is considering expanding its North Dakota bitcoin mining pilot program to further reduce the volume of natural gas it routinely burns off or flares into the atmosphere, Bloomberg reported. People familiar with the matter told the news outlet that the oil giant has an agreement with Crusoe Energy Systems to redirect gas that would otherwise be wasted from an oil well pad to mobile bitcoin mines. The report said the pilot project launched in January 2021 in North Dakota’s Bakken and expanded in July; now, it consumes up to 18 million cubic feet of gas per month that Exxon couldn’t otherwise monetize. Exxon is now considering similar pilot projects in Alaska, the Qua Iboe Terminal in Nigeria, Argentina’s Vaca Muerta shale field, Guyana, and Germany, one of the people told Bloomberg. “We continuously evaluate emerging technologies aimed at reducing flaring volumes across our operations,” spokeswoman Sarah Nordin told Bloomberg. She declined to comment on “rumors and speculations regarding the pilot project.” Bitcoin mining enables oil producers to sell gas they accidentally find while drilling for oil, not only bringing more profits to those companies but also contributing to the environment as such energy source is commonly wasted due to a lack of nearby pipelines. Denver-based Crusoe helps those companies capture otherwise wasted surplus gas from their energy production, convert it into electricity, and use it to power data centers and bitcoin mining operations. The firm estimates that bitcoin mining allows carbon dioxide-equivalent emissions to be reduced by over 60% compared to routine flaring.
Israeli Bank Leumi To Launch Bitcoin Trading
Leumi Bank, through its digital platform Pepper Invest, will become the first Israeli bank to enable the trading of cryptocurrencies, per a press release. “We are proud to be the first in the Israeli banking system and one of the few worldwide to offer our customers to trade in cryptocurrencies simply, safely, and reliably, without the need to download a crypto wallet and with all tax complexities being resolved by the bank”, says CEO of Pepper, Uri Nathan, per the release. Pepper partnered with New York-based blockchain infrastructure company Paxos to achieve feasibility for the initiative, pending regulatory approval. Paxos has a history of assisting companies like PayPal and Bank of America through the fog of blockchain-based regulatory and technical obstacles, among which is the traceability of transactions. The Bank of Israel previous published a draft for regulations in the space stating banks seeking to operate in the realm of cryptocurrency would need to “clarify the source of the money used in the purchase of the virtual currency and the path through which the virtual currency passed from the time of its purchase until its conversion to fiat currency (classified as any legal tender) and deposit into an account with the banking corporation.” Pepper customers will be able to buy, sell and hold bitcoin, as well as a limited number of other cryptocurrencies in transactions initially starting with 50 shekels ($15.49). However, it seems that users will not be able to withdraw bitcoin to external, self-custody wallets. Users will utilize their trading accounts at the investment app to initiate any transaction, removing third-party wallet providers from the equation. Pepper will also collect any necessary data for the collection of taxes, as required by the Israeli tax authority, to alleviate the concerns of taxation complexities often associated with cryptocurrencies.
Canadian Leadership Candidate Makes Appeal To Bitcoiners
As Bitcoin is becoming a rising tide in politics, Pierre Poilievre – A leadership candidate pursuing the role of Prime Minister, and current Member of Parliament (MP) of Canada – is seeking to gain favor in the Bitcoin and broader cryptocurrency space, as reported by CBC News. Government is ruining the Canadian dollar, so Canadians should have the freedom to use other money, such as bitcoin,” said Poilievre. This sentiment is not uniquely Canadian, as many citizens across the world have taken to a heavy critique of the arbitrary practice of quantitative easing, a practice by which central authorities artificially inflate the money supply to solve their problems. “$400 billion in cash out of thin air“ Poilievre reportedly recounts to a crowd in front of Tahini’s, a shawarma shop in London, Ontario that accepts bitcoin as payment. This same shop later did an interview discussing why not only do they accept bitcoin, but also hold it on their balance sheet as a hedge against inflation. “Choice and competition can give Canadians better money and financial products. Not only that, but it can also let Canadians opt-out of inflation with the ability to opt into cryptocurrencies,” says Poilievre, “It’s time for Canadians to take back control of their money and their lives by making Canada the freest country on earth.” Poilievre says he means to ensure the continued allowance of bitcoin and other cryptocurrencies while avoiding a ban, or China-like crackdown. He has also reportedly stated he intends for cryptocurrencies, not just bitcoin, to be treated as commodities. As the securities regulatory responsibility is a provincial matter, Poilievre also says he hopes to work with provinces to alleviate the “cobweb of contradictory rules”, as CBC News reported.
MacroStrategy Closes $205 Million Bitcoin-Collateralized Loan From Silvergate Bank To Buy BTC
MacroStrategy LLC – a subsidiary of trade analytics and business strategy company MicroStrategy which is well-known for its allocation to bitcoin – has recently closed on a $205 million bitcoin-collateralized loan purchased through the Silvergate Exchange Network (SEN) Leverage program operated by Silvergate Bank, per a press release from the two companies. A collateral account with a mutually-authorized custodian will oversee the interest-only term loan. The loan is allotted a three-fold purpose: buy bitcoin, pay fees and interest related to the loan, or general purposes to be determined by either MicroStrategy or MacroStrategy, according to the terms of the loan. “The SEN Leverage loan allows us to further our position as the leading public company investor in bitcoin,” says Michael Saylor, Chairman and Chief Executive Officer of MicroStrategy, per the release. “Using the capital from the loan, we’ve effectively turned our bitcoin into productive collateral, which allows us to further execute against our business strategy.” MicroStrategy continuously shows the optionalities available for taking out debt to secure bitcoin for their balance sheet, as they currently hold 125,051 BTC, valued today at just under $6 billion USD. Being a collateralized loan, extreme movements downward in the price of bitcoin could result in MacroStrategy experiencing a margin call, but with the excess reserves of MicroStrategy, the largest corporate holder of BTC, MacroStrategy has room for comfort. “We’re thrilled to add MicroStrategy to our growing list of SEN Leverage borrowers,” stated Alan Lane, Chief Executive Officer of Silvergate. “Their innovative approach to treasury management is an exceptional example of how institutions can utilize their bitcoin to support and grow their business.” SEN Leverage began in 2020 to provide institutional access to USD loans collateralized by bitcoin. By December 31st of 2021, the program had grown to over $570.5 million in commitments, showcasing a rallying cry for dollarized capital access for bitcoin accumulation.
There are people who make things happen, there are people who watch things happen, and there are people who wonder what happened.”
Jim Lovell on Bitcoin
Stay Safe & Stack Sats!
Bitcoin Adoption News by @CuredSausage
Community
This week’s issue is supported by Crypto Jobs List - the largest source of web3 jobs. There are hundreds of remote jobs that let your earn Bitcoin and other cryptocurrencies as a part of your marketingwriting or engineering job in this industry.
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