Bitcoin Fear and Green Index Newsletter. Block 36

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Bitcoin Fear and Green Index Newsletter. Block 36
By Bitcoin Fear And Greed Index • Issue #36 • 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's Bullish Divergence - Weekly Chart
Bitcoin's Bullish Divergence - Weekly Chart
This past week, Bitcoin had a relief rally to $40,000 followed by a bearish continuation to $33,636. I talked about this setup playing out in block 35 of the newsletter. In today’s newsletter, I will discuss the bullish divergence forming on the weekly chart as well as another bullish setup that could take Bitcoin into a rally.
Bullish Divergence:
The chart above illustrates a bullish divergence forming between Bitcoin and the Money Flow Index. While the MFI formed a higher low, Bitcoin formed a lower low. That said, the divergence has not been confirmed yet. Bitcoin will have to close the week below $34,300 for the bullish divergence to be valid.
If this divergence was to take place, I would expect the bullish reversal to materialize within several weeks considering that the divergence formed on the weekly chart.
Is the reversal guaranteed?
No. A bullish reversal isn’t guaranteed just as a drop to 28k-30k isn’t guaranteed either.
That being said, the previous divergences for Bitcoin on the weekly chart did result in successful trend reversals:
  • The bearish divergence of 2021 was validated as Bitcoin dropped from 69k to 33k.
  • The bullish divergence of 2022 was also validated as Bitcoin rallied from 33k to 48k.
Divergences and False Breaks:
Figure 1: Bullish Divergence w/ Initial False Break - RSI
Figure 1: Bullish Divergence w/ Initial False Break - RSI
After a divergence takes form, we often see the price initially break in the opposing direction of the expected reversal, before ultimately pulling back into a true trend reversal. This is typically a trap set by the market makers to liquidate participants who are doubting the setup. This mostly takes place in a low volume environment, the same environment Bitcoin happens to be in right now.
Figure 1 illustrates a hidden bullish divergence taking form on the weekly chart, followed by a false breakdown and a true trend reversal.
Figure 2: Bullish Divergence w/ Initial False Break - MFI
Figure 2: Bullish Divergence w/ Initial False Break - MFI
Figure 2 illustrates the same setup, but with the MFI. First, the Money Flow Index bottoms out, creating a bullish divergence with the price. Then, we see the price initiate a drop from the candle open, only to be followed by a pullback into the trend reversal.
Note how in both divergences the price did not fall below the levels of the two false breaks until the uptrend was clearly over. This just goes to show the strength of these divergences on the weekly chart.
A Bullish Setup:
Figure 3: Bullish Pin Bar - Daily Chart
Figure 3: Bullish Pin Bar - Daily Chart
Figure 3 illustrates a bullish setup that hasn’t taken form yet. The last candlestick on the chart demonstrates a bullish pin bar. This candlestick formation represents a catalyst for either a bullish continuation of an uptrend or a bullish reversal during a downtrend.
Why is this significant?
The reason why this formation is important is because of the price range that Bitcoin is currently in. Considering that Bitcoin is trading within a macro range of support, a bullish pin bar coupled with a spike in volume would be a great indicator of a potential reversal.
Figure 4: Previous Bullish Pin Bars
Figure 4: Previous Bullish Pin Bars
Figure 4 provides 2 examples of the bullish pin bar taking form near the lows of a downtrend and within a range of macro support.
The first example is a perfect illustration of a pin bar. The size of the lower wick was much greater than that of the body, the nose was not significantly larger than the body, and there was enough volume to support the thesis.
While the second pin bar is not perfect when considering the size of the nose, it did materialize near the bottom of the trend and within macro support. The lower wick was also more than twice the size of the body and there was more than enough volume to support the thesis.
This doesn’t mean that a bullish pin bar will always yield bullish results. This is just a bullish setup that would coincide nicely with the current price action. Trading it is risky given the market’s uncertainty.
With that said, have a bullish week, until we meet again.
TA review by @CryptoSultan21
Bitcoin Adoption News This Week
TL;DR
  • Cubans Are Using Bitcoin In Response To U.S. Sanctions
  • World’s Largest Family-Owned Private Bank Now Offers Bitcoin
  • California Governor Signs Executive Order Encouraging Bitcoin Businesses
  • Gucci To Accept Bitcoin In Select U.S. Stores
  • House Sold In Portugal For 3 Bitcoin In Country’s First-Ever Direct Transaction
  • Argentina’s Largest Private Bank Now Allows Users To Buy Bitcoin
Cubans Are Using Bitcoin In Response To U.S. Sanctions
Cuba is embracing bitcoin and other cryptocurrencies in response to burdensome U.S. sanctions, according to a report from NBC News. There are reportedly 100,000 Cubans currently using cryptocurrencies which is largely thanks to the introduction of mobile internet access that was only provided three years ago. One particular cafe owner named Nelson Rodriguez was interviewed by NBC due to his acceptance of bitcoin and other cryptocurrencies. In explaining what made Rodriguez decide to accept a new form of payment he stated “I like crypto because I believe in the philosophy.” The philosophy Rodriguez is likely referring to is the idea that money should be sovereign, meaning that it should belong to those who have earned it, and also that money should not intentionally devalue over time. These particular ideals have clashed with both the local government of Cuba and international sanctions often placed by countries such as the U.S. on Cuba. PayPal, Revolut, Zelle, and many other forms of internationally accepted forms of credit or debit cannot be used by Cubans due to sanctions banning the services. Many institutions such as JP Morgan and Deutsche Bank have reportedly faced multi-million dollar fines for providing services to Cubans.
World’s Largest Family-Owned Private Bank Now Offers Bitcoin
LGT Bank, the largest family-owned banking group in the world, now offers direct investments in bitcoin through a partnership with Swiss financial institution SEBA Bank, according to a press release. “We are very pleased that we can now offer our clients convenient access to these markets while upholding the highest security standards,” said Roland Matt, CEO of LGT Bank in Liechtenstein. “We worked intensively on this offering.” Switzerland-based SEBA Bank will provide the necessary trading and custody services for the implementation of LGT’s offerings. LGT said that the partnership seeks to reduce security risks for its clients that it says are common in the space, including market, liquidity, and private key possession risks. “We have the expertise, established processes, and above all, a custody solution that is ISAE-certified and established by independent bodies,” said Franz Bergmüller, CEO of SEBA Bank, in the release. “As a licensed and FINMA-regulated Swiss bank with a core competence in cryptocurrencies and digital assets, we enable banks and their clients to handle traditional and digital assets securely.” Bergmüller continued to say, “The range of services combined with the highest security standards makes SEBA Bank’s service offering unique, and we are very pleased to be able to use our expertise to support LGT in expanding its services for digital assets.” Existing clients of LGT will find the processes for investing in bitcoin similar to the processes associated with traditional assets. LGT will provide the same tax documentation for tax returns and the liquidity will be accessible after a short time if a client chooses to sell.
California Governor Signs Executive Order Encouraging Bitcoin Businesses
Governor Gavin Newsom of California signed an executive order (EO) today creating the legal framework for companies working within bitcoin and other cryptocurrencies, per a press release from the governor’s office. The EO states one of its main priorities is “GovOps shall explore opportunities to deploy blockchain technologies to address public-serving and emerging needs.” Should the state seek to determine if a company is an applicable fit for a particular vendor need, the state will review particular use-cases of each company and determine whether or not it will accept vendors based on factors such as environmental impact and relevance. Members of the Governor’s Council for Postsecondary Education are expected to create a research and work environment to strengthen innovation in cryptocurrency designed for exposing students to new opportunities in the space. The goal is to develop a workforce pathway and generate paths for continued education “to ensure a pipeline of talent.” The EO states multiple priorities of the state in creating this regulatory framework, but one, in particular, is the creation of a consistent and transparent business environment for any companies operating with the bitcoin or broader cryptocurrency ecosystem. The order means to create a feedback system of stakeholders led by the Governor’s Office of Business and Economic Development (GO-Biz) and Business, Consumer Services, and Housing Agency (BCSH), and the Department of Financial Protection and Innovation (DFPI). The goal of this coalition is to harmonize state and federal authorities for regulatory action.
Gucci To Accept Bitcoin In Select U.S. Stores
Gucci is launching a pilot to test the acceptance of bitcoin in five of the luxury fashion house’s U.S. stores with plans to extend the functionality to all non-franchise North American shops, according to a report from Vogue BusinessInitially, the Gucci stores that will accept BTC are at Wooster Street in New York, Rodeo Drive in Los Angeles, Miami Design District, Phipps Plaza in Atlanta, and The Shops at Crystals in Las Vegas. “Gucci is always looking to embrace new technologies when they can provide an enhanced experience for our customers,” Marco Bizzarri, Gucci president and CEO, reportedly said. “Now that we can integrate cryptocurrencies within our payment system, it is a natural evolution for those customers who would like to have this option available to them.“ Customers will be able to pay with bitcoin and a handful of other cryptocurrencies. The store will send a QR code to the customer’s email, allowing customers to interact with the wallet of choice. Gucci’s process will leverage an undisclosed service provider to pool bitcoin price values from multiple cryptocurrency exchanges in real-time in an attempt to determine the most accurate BTC amount with which to charge the customer. When an item is returned by a customer, the company plans to pay them back with the cryptocurrency used at the time of purchase.
House Sold In Portugal For 3 Bitcoin In Country’s First-Ever Direct Transaction
An apartment in Braga, Portugal was sold for 3 BTC on Thursday in the first-ever real estate sale directly and entirely made in bitcoin, local news outlet Idealista reported. The feat was possible thanks to new rules that became effective last month setting the directives as to how owners and real estate agents could sell properties for cryptocurrency directly. Before the rules, someone buying a house with bitcoin in Portugal had to first convert it to euros at the time of purchase to do the transaction and receive the house deed. “This deed represents a historic milestone, the transfer of a digital asset to a physical asset – a house – without any conversions to euros,” said real estate company Zome, according to the report, which participated in the sale in conjunction with a group of lawyers and other partners. The sale of real estate for bitcoin has recently gathered popularity across different parts of the world.
Argentina’s Largest Private Bank Now Allows Users To Buy Bitcoin
Banco Galicia (Nasdaq: GGAL), the largest Argentinian private bank, confirmed that it will allow its users to buy and sell bitcoin and other cryptocurrencies in a series of “new investment options,” in a tweet earlier today. The bank reportedly added a feature within the investment section of its mobile application for users to acquire BTC and a select few other cryptocurrencies, according to a report from CoinDesk. Banco Galicia will be working with Lirium, a cryptocurrency infrastructure company, to accomplish the rollout of these new investment vehicles. Lirium enables banks and digital wallets to buy, sell, send, and receive cryptocurrencies. Argentina has become increasingly friendly towards bitcoin adoption over the past two years. In August 2021 Alberto Fernandez, President of Argentina, was asked if he would follow the likes of El Salvador in making bitcoin legal tender stating, "I don’t want to go too far out on a limb… but there is no reason to say no.” At the time Fernandez made this comment, Argentina was seventh in the world inflation index.
“Discipline is the bridge between goals and accomplishments.” Jim Rohn 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 marketingcommunity or engineering job in this industry.
Participate in the next newsletter block!
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  • This week’s chart, TA
  • This week’s regulation news
  • Major adoption news. Who’s accepting BTC/crypto?
To participate, submit your write up via this form. Best content will be featured and authors credited. ✌️
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