This Tuesday (26) many Brazilian politicians who are familiarizing themselves with the cryptocurrency market go after the “market” to find out what happens to the price of Bitcoin, which varies so much.
For those who are long-time travelers, Cointimes brought the update to the Stock-To-Flow forecasting model in this Market Brief. While Bitcoin consolidates above $60K, altcoins Ethereum (ETH), Solana (SOL), Dogecoin (DOGE) and Shiba Inu (SHIB) continue to grow on the weekly chart, according to CoinGoLive.
Bitcoin Consolidates for Next ATH
Although last week Bitcoin traded at its all-time high and soon fell, last week’s gains were still held. According to CoinGoLive, Bitcoin (BTC) maintains its trajectory north with a 1.82% increase in one week.
However, the main cryptocurrency failed to overcome price resistance at $67,000. It is now traded at US$ 63,148 – R$ 353,380 in the main Brazilian brokers.
According to analyst updates PlanB, the Bitcoin network is each day closer to an All-Times-High (ATH). The asset price in red is approaching the Stock-to-flow model in a move similar to what is seen in 2013 and 2017.
Bitcoin’s market capitalization is just under $1.19 trillion, but its dominance over altcoins is still at 43%.
What the “market” says about Bitcoin and the economy
In the Brazilian market, assets continue to adjust to the government’s decision to propose changes in the spending ceiling and, thus, change the fiscal regime in Brazil.
While the Brazilian stock market closed on a high, in the interest rate market, agents continued to raise their bets in the direction of a more intense tightening of the Selic at the meeting of the Monetary Policy Committee (Copom) on Wednesday.
Market forecasts are not the best for the Brazilian economy. In short, GDP will fall and interest rates, inflation and the dollar will rise. Even foreseeing the disaster, some market agents who are specialists in giving lectures on the macroeconomic scenario are asked by politicians to give their opinion.
That’s what happened this week, when the owner of BTG Pactual met with the Brasilia summit to discuss even the price of Bitcoin. Check out the leaked audio and the full “market” opinion about Bitcoin.
Read too: “Bitcoin!? Oh, it’s cheap”, jokes André Esteves, from BTG, in leaked audio
It is now on the agenda of politicians to discuss Bitcoin. Accordingly, tomorrow (26) there will also be a public hearing on Real Digital with the Financial Inspection and Control Commission of the Chamber of Deputies.
The hearing is at the request of deputy Aureo Ribeiro (Solidariedade/RJ). In his application, he recalled that the topic is recent and needs “many discussions and definitions involving legal issues”.
Also in the application, Ribeiro highlighted that Brazil is moving towards the use of a digital currency, the Real Digital. As stated by the congressman, the digital currency will work like physical money. In other words, it can be used for payments, transfers and others, and it can be saved in digital wallets.
Read too: Central Bank forgets the most important feature for Real Digital
Among the participants in the debate will be the country manager of R3 in Brazil, Keiji Sakai. In addition, the event will feature the participation of Fabio Araújo, from the Executive Secretariat of the Central Bank and Eduardo Diniz, from the School of Business Administration of São Paulo (EAESP).
During the weekend’s volatility, some altcoins also fell. But that didn’t mean they didn’t make gains in a week. This is the case of Ethereum (ETH) which jumped 12.83% in one week.
Solana (SOL), Dogecoin (DOGE) and Shiba Inu, which rises 52% in one week, also consolidate their weekly gains in more than double digits.
The result of the main altcoins in the last 24 hours is as follows: Ethereum (+2.32%), Binance Coin (+1.14%), Cardano (+2.07%), Solana (+1.15%), Ripple (+3.0%), Polkadot (+1.07%), Dogecoin (+3.41%), Shiba Inu (+12.71%), Earth (+2.91%), Avalanche (+8 .89%), Chainlink (+2.09%) and Uniswap (+5.67%).
The cumulative market capitalization of all cryptocurrencies was close to $2.7 trillion.
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Ethereum out performs Bitcoin, ETH regains the majority its flash-crash losses
- Ethereum price, like the broader cryptocurrency market, suffered a massive flash-crash during the early midnight trading on Saturday.
- 17% losses at one point were measured.
- Throughout the remainder of Saturday, buying pressure wiped out nearly all of the overnight losses.
Ethereum price performance on Saturday has been nothing short of spectacular. Considering that most of the altcoin market is down fifteen to twenty percent, Ethereum’s daily close of down only 4% is a testament to its strength.
Ethereum price regains nearly all of its flash-crash loss, handily outperforming the broader market
Ethereum price experienced one of the fastest and deepest flash-crashes since May. The timing of the collapse couldn’t have been more perfect: midnight Eastern Standard Time (New York). Bears could push Etheruem to the $3,503 price level before a bullish reversal occurred.
The two primary support levels holding Ethereum price up are Senkou Span B at $3,700 and the third-highest volume node in the 2021 Volume Profile at $3,410. While highly bullish in the short-term, indecision remains and downside risks.
Despite the massive recovery, Ethereum price remains inside the daily Cloud – an area rife with indecision, volatility, and whipsaws. The Cloud is the place where trading accounts go to die. Etheruem needs a daily close at or above the $4,650 price level to convert to a full-blown bull market.
Ethereum price is tilted more bearish here, especially with the Chikou Span below the candlesticks and in open space. Adding to the bearish outlook is the bear flag breakout on the Relative Strength Index. However, the final oversold level at 40 in the Relative Strength Index might yield some support.
ETH/USD Daily Ichimoku Chart
The threshold that bears need to achieve to convert Ethereum price into a bear market is a much more manageable price range than converting to a bull market. For example, whereas Ethereum needs a 15% move above $4,000 to convert into a bull market, short-sellers only need a 7% move below $4,000 to convert Ethereum into a bear market.
Any daily close at or below $3,700 would position Ethereum below the Cloud and into bear market territory.
Top Analyst Says One Crypto Asset Will Spearhead Bull Market Recovery – And It’s Not Bitcoin
A closely followed crypto analyst and trader is naming one altcoin that he believes will reignite the crypto bull market.
Pseudonymous crypto strategist Credible tells his 275,300 Twitter followers in a new video that Ethereum’s strong performance against Bitcoin (ETH/BTC) amid the brutal correction is a sign that the markets are still bullish.
“I’m bullish on Ethereum and also in general, as long as we’re holding this monthly support 0.075 BTC ($3,662). I want to show you guys on this massive drop that we just saw, Ethereum/Bitcoin is holding up beautifully… This is when alts take the lead, when alts start shining, guys.
If this was a bear market, Ethereum/Bitcoin would not be popping right now when Bitcoin’s correcting. It would be dropping very, very hard. It’s holding support. We’re pushing up – bullish.
I think alts are going to rebound off of this drop harder than Bitcoin. I think, particularly, Ethereum is going to do it exceedingly well.”
At time of writing, ETH/BTC is trading at 0.086 ($4,224), up over 11% in the last 24 hours.
Looking at Bitcoin (BTC), Credible is also bullish on the prospects of the king cryptocurrency even after an epic crash that saw it plummet from $52,000 to $43,500 in less than an hour.
According to the crypto strategist, he believes yesterday’s deep pullback signalled the end of a macro corrective phase for BTC.
“I believe we’re now wrapping up that flat correction. The expectation is that we’re putting in a higher low above the lows at $30,000 and everything above that is fine, and I think that is what we’re seeing right now.”
At time of writing, Bitcoin is exchanging hands at $49,104, down over 7% on the day.
Peter Schiff Names Real Reason Behind Bitcoin Drop
Popular digital assets critic believes that measures against inflation are the real reason behind the most recent market correction
The famous Bitcoin and crypto critic, Peter Schiff, provided his Twitter subscribers with a potential reason behind one of the largest corrections on the cryptocurrency market this year.
According to Schiff, Bitcoin’s correction was tied directly to the Fed’s action toward risk assets like cryptocurrencies and some stocks. Previously, Jerome Powell hinted that tapering might happen sooner than the market expects.
Risk assets like stocks & #Bitcoin are tanking simply because Powell hinted the #Fed might wrap up the taper a couple of months early and the first 1/4 point rate hike may also come a bit sooner. Imagine what would happen if the Fed was actually serious about fighting #inflation!— Peter Schiff (@PeterSchiff) December 3, 2021
In addition to the end of the quantitative easing monetary policy, Powell has stated that the point rate may be increased sooner than was expected due to the inflation’s change of nature, which has become a real threat to the country’s economic safety and stability.
All of the actions that the Fed is currently taking are designed to control inflation, which is currently hitting highs previously observed back in the Depression era.
High-risk assets like Bitcoin and other digital assets were allegedly considered a store of value for those who wished to protect their funds from increased inflation. Schiff is a widely known critic of cryptocurrencies, and he believes they should not be considered an inflation hedge.