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Btcusdtanalysis

Bitcoin halving: Why it’s important for BTC scarcityGood day, traders The Bitcoin Halving has happened again. ~1st Halving (Nov 2012): BTC price was $12.0. It reached its highest price ever at $1163. ~2nd Halving (July 2016): BTC price was $638.51. Then, it skyrocketed to a new all-time high of $19333. ~3rd Halving (May 2020): BTC price was $8475. It later surged to a new record of $68982. ~4th Halving (April 2024): BTC price is now $63839. What will the new all-time high be? What's different this time around? 1. A Bitcoin Spot ETF is in play. 2. Big institutions and investors are jumping in. 3. More people are aware of cryptocurrencies. 4. Governments are making new rules for cryptocurrencies. 5. Cryptocurrencies like Bitcoin are being accepted globally. Let's get to the topic Bitcoin's halving is a critical event that helps establish Bitcoin's value as a digital asset. It reduces the rate at which new Bitcoins are created, enhancing its scarcity and potentially positioning it as a reliable store of value for the digital era, more fluid than real estate or gold. In the most recent halving, which occurred at the 840,000th block, the reward for mining a new block dropped from 6.25 BTC to 3.125 BTC. This reduction in mining rewards means that fewer new Bitcoins are entering circulation, making existing Bitcoins more scarce. Karim Chaib, CEO of crypto platform Dopamine App, explains why this matters: "Scarcity is a basic economic concept that impacts asset value. By design, Bitcoin becomes scarcer over time due to the halving events, which decrease its supply at a predictable rate." Bitcoin's halving is built into its code and occurs approximately every four years, or every 210,000 blocks. The first halving was in 2012, when the reward went from 50 BTC to 25 BTC per block. Since then, the reward has halved again in 2016 and 2020, and now stands at 3.125 BTC per block. This predictable scarcity sets Bitcoin apart from assets like gold, which can become less scarce over time as technology improves mining efficiency. Bitcoin, with its fixed supply limit of 21 million coins, is designed to be immune to inflationary pressures. In summary, Bitcoin's halving events ensure its scarcity over time, boosting its potential as a valuable digital asset compared to traditional stores of value like gold. This is just for informational purposes. Thank you for reading.
INDEX:BTCUSDEducation
by CRYPTOMOJO_TA
Open Interest - Deciphering Bitcoin's Market SentimentIn the ever-evolving landscape of cryptocurrency trading, Bitcoin often serves as a beacon, reflecting broader market sentiment through its dynamic price movements and trading metrics. Today, let's explore the intricacies of Bitcoin's market dynamics by dissecting Open Interest (OI), funding rates, liquidations, and long/short ratios—using current data as our live case study. What do we see? (follow the steps) 1) Price action . Essential to understand it before the usage of any indicator. 2) Open Interest , the total number of outstanding derivative contracts like futures and options, provides a window into market activity. An increase in OI alongside a rising BTC price suggests new money might be entering, potentially signalling bullish sentiment. Conversely, decreasing OI during price drops might indicate a bearish outlook. Currently, we observe a slight uptick in OI as BTC recovers from a dip, hinting at growing confidence among traders. 3) The funding rate , specific to perpetual contracts, reflects periodic payments between longs and shorts. A positive rate, where longs pay shorts, suggests a bullish consensus, as it's costlier to maintain long positions. Presently, BTC's slightly positive funding rate aligns with its uptrend, indicating that traders might be anticipating further price increases. 4) Liquidations occur when a trader's position is closed by the exchange due to a margin call. A cluster of liquidations often follows a sharp price movement, as we've recently seen with BTC. These liquidation spikes could suggest that overleveraged positions have been flushed out, which can sometimes signal a local price bottom and a potential reversal point, paving the way for a more sustained upward trend. 5) The ratio of long to short positions tells us about the prevailing market bias. A ratio significantly above 50 indicates a bullish majority, which is currently the case with BTC. This higher long/short ratio could be interpreted as a market leaning towards optimism. As always, I hope you found this insightful and have a lovely Sunday! ;)
Education
by Lexi_Is_Trading
The Laws of cryopto markets.Law #1 All markets are inherently Fractal. Markets have many patterns. Fractals are similar in different instruments, different timeframes, and even in different time periods. Whether you look at a monthly chart or a 1-minute chart, the same principles and patterns work everywhere. If you remove the ticker or symbol of an asset and the time frame from the chart, you will hardly be able to determine the chart of which instrument you are analyzing. All markets move according to the "Russian Matryoshka" principle: balances within balances, ranges within ranges, transitions from one pattern to another. Law #2. At a certain point in time, markets are either in balance or moving in a trend. Markets can only be in one of these two states. So what is balance, or as I sometimes call it, range? Financial Markets have long been designed to create a "bargain." In a balance sheet, buyers and sellers determine some kind of value for a commodity or trading instrument. It is in the balance that buyers and sellers come to a common denominator or agree on the valuation of the commodity they are trading. In a trend, on the contrary, both buyers and sellers disagree on the price and move away from the previously agreed value of the commodity. The reason for this can be anything: supply and demand, news background, some rumors, fundamental changes or whatever. Something has caused the price to get out of a certain balance. The value of the goods has changed, and if it has risen, it means that the buyers have become much more aggressive than the sellers, or vice versa. More aggressive means that buyers, for whatever reason, are willing to pay more than sellers offer. These "transactions" and aggressive transitions move the world markets until both buyers and sellers agree on the value of the commodity again. Then the "flat"/balance starts again, then the trend, and then the stop and balance again. It is very important to understand that getting out of a Grand Balance creates a big trend. Understanding this can bring you either big profits or big losses if you start trading against such a trend. Trends and balances move in the dynamics of the markets and the matryoshka structure. This is what creates the context of the market. Law #3. Price moves in a series of impulses and corrections. It never flies up in a rocket (except for dumps on crypto or low-liquid assets), and it never rocks down (dumps on crypto). The move starts with a directional move and then stops at a point called a swing high on an upward momentum. After that, the price begins to move in the opposite direction. This is called a correction or "balancing" if price corrects against the trend. Often price also corrects over time or horizontally when the momentum "cools down," creating a horizontal balance or rerun, but not giving any correction to keep traders out of the trap Even if sometimes it seems that on a large timeframe price is moving in a straight line upward, when you approach the 15-minute timeframe, you can see that price is going impulses and corrections. Law #4. Price takes all information into account effectively, but not perfectly. This "law" is one of the most controversial in trading, and the least understood. As a rule, market participants cannot find a common denominator in explanation of this rule. On the one hand there are supporters of the hypothesis of the market rationality, according to which the price instantly includes all information, news and rumors. They say that the price instantly reflects everything that is happening in the world from details to global fundamental changes. But if it were true, then it would be impossible to be a profitable trader in the market. From my experience I am willing to argue with this, and there are so many traders who are making huge money in the market contrary to the rationality of the markets. In reality, markets are actually rational, price does include all information very quickly, but market participants are quite far from being rational. Very often the emotional characteristics of market participants cause the price to move too high or too low in the trend direction contrary to the real price of a particular asset. Greed and fear (FOMO-fear of missing out) can often be to blame. Of course, sooner or later the price of the asset will come back to its real value, but the fact is that markets are not entirely rational. That is sometimes the best opportunity to raise good money in a trade against the "crowd."
BITSTAMP:BTCUSDEducation
by Artem_Dishel
7
#BTC AND USDT DOMINANCE COMPARISON!!Hi guys, This is CryptoMojo, One of the most active trading view authors and fastest-growing communities. Do consider following me for the latest updates and Long /Short calls on almost every exchange. I post short mid and long-term trade setups too. Let’s get to the chart! I have tried my best to bring the best possible outcome in this chart, Do not consider it as FINANCIAL ADVICE. I always emphasize that time in the market beats timing the market, but I want to share an interesting approach that you can consider taking when timing the cryptocurrency market, especially when it comes to Bitcoin's overall direction. Tether Dominance - Just as Bitcoin dominance refers to Bitcoin's market cap relative to that of the entire market cap, Tether dominance is no different. - It refers to how much capital is parked in stablecoins, specifically Tether, at any point in time. - Since Tether (USDT) is a stablecoin that tracks the USD, an increase in Tether's dominance suggests a pullback or correction in cryptocurrencies. - A simple way to understand it is to think of USD flowing in and out of the market. - On the other hand, if Tether's dominance drops, it means that more capital is being deployed to purchase cryptocurrencies, which is bullish overall for the market. - If you look at the graph above, you'll clearly see the inverse correlation between Bitcoin (orange) and Tether dominance (black). - Key support and resistance zones for Tether dominance are marked as well. - As we're currently trading slightly above local support, marked in green, if we see Tether Dominance fall below those levels, we could expect Bitcoin to continue rallying upwards. This chart is likely to help you in making better trade decisions if it did consider upvoting this chart. Would also love to know your charts and views in the comment section. Thank you
Education
by CRYPTOMOJO_TA
3
BULLRUN WILL START SOON!!Hi guys, This is CryptoMojo, One of the most active trading view authors and fastest-growing communities. Consider following me for the latest updates and Long /Short calls on almost every exchange. I post short mid and long-term trade setups too. Let’s get to the chart! I have tried my best to bring the best possible outcome to this chart, Do not consider it is FINANCIAL ADVISED. WHAT IS BULLISH DIVERGENCE? Price divergence – bearish and bullish – in the crypto space can sometimes determine future price direction. Higher chart time frames often yield stronger, more impactful results. Combining market signals for confluence can be important when conducting technical Everyone in crypto wants an answer to the golden question: where will the bitcoin price go next? Although no one truly knows future price action until it happens, price divergence can sometimes be used to help answer that question. Divergence occurs when price makes higher highs, while indicators paint lower lows or vice versa. Simply put, divergence is when price direction contradicts indicator direction, creating a noticeable conflicting pattern. Let's get to the BTC chart as we can see in the chart that BTC is forming this bullish divergence move in the daily time frame as we made in the last 2021. This chart is likely to help you in making better trade decisions if it did consider upvoting this chart. I would also love to know your charts and views in the comment section. Thank you
Education
by CRYPTOMOJO_TA
4