Bitcoin, Blockchain,
DeFi, NFT
News, Events, Meetups
https://www.tradingview.com/x/YvbKc5jL/
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Bitcoin lost its short-term support at $63,588 and dropped to a low of $58,638 before slightly recovering to its current price of $60.9k. The weekly level of $59k was strong enough support to keep the price from dropping any further and buyers stepped in to defend the level. I personally am not a fan of the price drop and I think ATH breaks should be strong and violent, but as long as the weekly support level holds and the bullish market structure remains intact, I still think it is fine to be bullish in the near term.
Bitcoin first reclaims the last daily support $63588 (now resistance) and then continues to push up.
Bitcoin loses the weekly support level of $59k, and then we look for the $49k -$53k level to hold.
https://www.tradingview.com/x/Ii0RVBoT/
https://www.tradingview.com/x/7BLamtaL/
Ethereum has seen a price decrease of about 10% today before slightly recovering. Price opened at $4564 and managed to dip to a low of $4108 before bouncing back to its current price of about $4.2k at the time of writing. The short-term support that we marked out last week at $4375 has been broken and price is currently fighting to maintain a daily close over the level. In my opinion, if Bitcoin’s price is done dipping this level will get reclaimed easily, but if Bitcoin continues to dip then we should start looking at the $4k level or lower for Ethereum’s next support level.
Ethereum maintains price over the $4.3k level and continues to rally.
If the $4.3k area is not reclaimed, I would expect for the $4k area to act as support. $3.6k is also a great support level to keep in the back of your mind but for now $4k should be our focus.
During this week Bitcoin block 709,632 was processed and Bitcoin’s Taproot upgrade officially went live. This is considered its largest update in the last four years. Taproot enables Schnoor signatures, boosts Bitcoin’s smart contract functionality, allows transactions to become more data efficient (which could lead to lower fees), and increases privacy by masking what types of transactions are being executed.
While this is a huge step forward in innovation and considered positive news for the entire crypto space in general, the actual price of Bitcoin has reacted negatively to the news. The price of Bitcoin has decreased from about 65k down to 60k. Sometimes investors and traders call events like these “buy the rumor, sell the news” events. This is a basic trading strategy that plays on the market’s behavior. These events usually lead to an asset’s value spiking on rumors and then decreasing once the news is confirmed.
For more information on the basics of the Bitcoin Taproot upgrade, check out this article.
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