Welcome to the first edition of 2021. Our last edition of 2020 had the highest number of readers!
I wanted to start this year giving a market update on the main charts were watching this bull cycle. Before getting into these I do want to warn everyone that a potential larger correction in Bitcoin price could happen before the next leg up, so be vigilant.
Bitcoin: Market Cap to Thermocap Ratio
Market Cap to Thermocap Ratio is telling us we have a lot more room to go. 2021 could be a huge year for Bitcoin price. Just remember it’s 12 months long and lots can happen in between.
Bitcoin: Reserve Risk
Reserve Risk is pretty much identical in terms of potential upside for Bitcoin.
Bitcoin: Difficulty Ribbon
The Bitcoin Difficulty Ribbon is still in a compressed state. This means miner sell pressure isn’t a big factor currently. A positive sign for a continued uptrend.
Bitcoin: Net Unrealized Profit/Loss (NUPL)
Bitcoin NUPL is still in the Belief - Denial zone. At first glance it looks like a top is approaching as Bitcoin price gets closer to the Euphoria zone but as Rafael Schultze-Kraft points out, Bitcoin did a 10x at this level in 2017.
Keep in mind that Bitcoin could see a major correction causing the chart to downtrend away from the Euphoria zone, and then continue its uptrend again leaving more room for price to increase before Euphoria is hit. This is a common scenario in Bitcoin bull cycles.
Currently, many are unsure of which way the market will go. Bitcoin has increased in price after passing its all time high rather fast, that many expect a pullback.
It is evident as leverage on exchanges has decreased significantly showing most traders are staying cautious.
A possible correction zone could be around $24,000 to fill the CME gap.
Secure Your Bitcoin
I wrote a Tweet thread on tips to keeping your Bitcoin secure. I would advise you to read it and check off each one if possible. Keeping your Bitcoin safe is the most important part of the game.
Let’s connect on Twitter. Looking forward to hearing your thoughts and feedback.
In the news…
Resources I Use
I use Glassnode for all the metrics I track on the Bitcoin network. Their platform is extremely user friendly and fun to use.
Binance is the main exchange I use to trade the crypto markets.
Coinsquare is offers Bitcoin trading in Canadian dollars and is one of the top exchanges in Canada.
Trading Alpha has built their own indicators that provide buy and sell signals for crypto and equities trading.
I use Tradingview daily to analyze trading charts and find areas of support and resistance.
I learned how to trade through the Bulls on Wall Street program. I’m in this chat everyday giving out my trade ideas.
Nothing in this article is investment advice. I’m not a financial advisor. Do not make investment decisions based on what is in this article or any other article written by BTC News or Blockedia.