Categories: Market

Crypto This Week 07/11. – 17.07. (Market, BTC …)

Market perspective

Hello everyone, another week has passed and here we meet again, Thuancapital’s weekend newsletter.

To be honest, the cryptocurrency market made me feel very bored last week, so almost by the time I was writing this article, I still couldn’t find a suitable story to share with everyone. However, my main concern at the moment is still the direction of Bitcoin, although the price chart shows that volatility is still low and no breakout trend is firmly established here. Hence, on-chain data is the part of the data that I track more.

Wilhelm Clemente III As a young person I’ve been following lately, your analysis of Bitcoin on chain data is really interesting and in this article I’m going to share some information that I find useful from that analysis: Williams Legacy.

The number of companies participating in the Bitcoin network is increasing despite the price drop this time, with over 50,000 new companies joining the chain every day.

The next step is the analysis of the ongoing accumulation. This trend has no acceleration this week. There are several aspects that we need to take a closer look at: (1) the amount of supply added by the market, (2) the size of the companies that are absorbing that supply, and (3) the spending behavior of the companies that are absorbing that supply.

About cash flow on stock exchanges. The exchanges are down -17,794 BTC this week. Instead of just showing the balance on the chart, below is a variation created by William using the Bollinger Bands tool, the signal looks at the dominant times by identifying the coins to be traded. Buy signal appeared in over 3 months, which shows us that the trend reversal towards accumulation is underway.

Next we will examine the size of the units acquired. Buying from individual investors has increased tremendously in recent weeks, with 17 new whales being born on the blockchain this week and the total number of bitcoins held by whales rising to 65,429 BTC.

Finally, let’s look at the spending behavior of buying companies. Institutions have historically had very low sales and continue to suck up more money from speculative traders, with liquidity supply ratios skyrocketing. This dynamic continues to affect prices. In the absence of a speculative event, the question of “when” the accumulation will end is not “if”. Once the process is complete, the market will experience another supply shock.

Next, we need to pay attention to the events related to grayscale. Most noticeably, Grayscale’s insurance costs appear to be rising, another sign that capital is returning to the market. It will be interesting to see how the upcoming activation affects the reward.

The hash rate has finally hit at least a local low, trending up slightly this week. It will be a long way to full recovery, but it is good to see that this event may be over. The miners also seem to be piling up again, adding 1,045 BTC to their balances this week.

I hope that some of the information in this article can give you a better insight into what is currently happening in the market. Although, in your opinion, it may not be better, but at least the belief must always be right?