Stairway To $50k: Broker’s Beat Volume #55

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Welcome to the 55th issue of the Broker’s Beat. This week, we’re looking at the bulls targeting $50k for Bitcoin spot price, which is a huge possibility considering that Cuba is working on accepting BTC as a means of payment.


BY THE NUMBERS

gain

loss

market


SNIPPETS

Illegal crypto mining not the cause of power shortages in Iran, ministry says

Source: CoinTelegraph

“Iran’s Ministry of Industry, Mine and Trade reportedly dismissed claims by leading power company Tavanir that blamed illegal cryptocurrency miners for the ongoing power shortages in the country.”

President of Belarus: “Start Mining Cryptocurrencies or Whatever It’s Called”

Source: CryptoGlobe

“As Cointelegraph reported yesterday, using Russian news agency RBC as their source, President Alexander Lukashenko spoke at the opening of the Petrikovksky mining and processing plant on August 27, proposing that the state get involved with mining crypto.”

Bitcoin miners post $1.4 billion in revenue for August, data shows

Source: The Block

“Bitcoin miners brought in approximately $1.41 billion in revenue during the month of August, according to data compiled by The Block Research.”

$100 Million Mining Rig Supply Deal Signed by Genesis Digital Assets and Canaan Technology

Source: The U.Today

“According to Jianan Zhizhi, Canaan Technology has signed a $100 million deal with North American mining company Genesis Digital Assets to supply 200,000 Avalon mining machines.”

Suspect Disappears With $119,000,000 Worth of Dogecoin in Alleged DOGE Mining Scam

Source: The Daily Hold

“The primary suspect of an alleged Dogecoin mining scam in Turkey has reportedly disappeared along with $119 million worth of DOGE investments. ”


THE BITCOIN BEAT

BTC/USD

A snapshot of Bitcoin’s spot price as of this writing is $50,094.09 representing 5.56% increase over night and 5.71% increase in trading volume. The 30-day volatility of BTC is 41.05%. Bitcoin remains the top cryptocurrency trading with a support at $46,000 and resistance at $50,000.

ETH/USD

ETH is trading at $3,785.72 as of this writing, representing a 24-Hour increase of 7.28%, and 30-day volatility of 57.2%. Over the last 24 Hours, the trading volume decreased by 0.96%. As of today, ETH holds 19.12 % of the cryptocurrency market, making it the second-largest coin traded.


INFLOW/OUTFLOW MONITOR

Bitcoin flow across exchanges and wallets has been consolidating on most charts. When we take a look at the charts for all exchanges reserves, we can see that it hit a resistance at 2.5M BTC around June – July 2021. Bitcoin reserve value crashed as the Bitcoin spot price steadily increased to its current consolidation value of around 47 – 49k. It now moves at a support level of around 2.4M and has since been trading sideways.

IMG 20210902 WA0000

All exchanges reserve for Bitcoin increased from 2.43M on August 20 to 2.46 on August 31. This means that the amount of Bitcoin available on exchanges for spot and margin trading has increased. This means the supply for selling BTC has increased.

IMG 20210902 WA0001

Also from the BTC exchanges inflow chart shown above, we see an increase in the BTC inflow value into exchanges from 11.9K Bitcoin August 29 to 33.2K BTC on September 1. An increase in inflow of BTC implies that the supply of Bitcoin for day-to-day trading on exchanges was increased.


HASHRATE ANALYSIS

As the crypto mining space has started to regain operations since the China crypto ban, hashrate computing value has seen an increasing trend. Miners have resorted to settling down in crypto-friendly locations and have begun to set up multiple crypto mining facilities in pursuit of greener mining conditions.

IMG 20210902 WA0002

The total hashpower value increased from 125m TH/s on August 25 to 131m TH/s on August 30, recording its peak value since it crashed to significantly low levels on July 3. Now, it has had a pullback correction to its current value of 127m TH/s on September 1. A steady uprise of the Bitcoin hashrate implies that the Bitcoin network is more secure and difficult to hack.

IMG 20210902 WA0003

This is evident from the chart above which represents the network difficulty. Network difficulty value increased from 15.5t on August 24 to 17.6t on September 1. Network difficulty means that miners find it harder to mine a new block on the blockchain, meaning that the network is even more secure and less prone to hacks.


TRADER’S DIGEST

Crypto fundamentals have been interpreted by the bulls as a move that will propel the continuation of the ongoing bull cycle, while the bears believe that there will be another nosedive for the crypto market.

Bulls target a 50k Bitcoin spot price as we approach the end of this week as we approach the $655 BTC options expiry. Bitcoin has found support at 47k after testing this level twice, following last week’s BTC dump. Many people believed that traders set a ‘put’ option last week and this led to the BTC dump. The Bulls anticipate greener candles because there have been more ‘Call’ options placed at 48k or more before the options expire on Sept 3.

Another insanely bullish piece of news for crypto this week is that Cuba is set to adopt Bitcoin as a means of payment in the coming weeks. Not much is known about the details of how crypto payments will play out in Cuba, however; its central bank states that citizens can use crypto for payments for ‘reasons of socioeconomic interest’. It appears that Cuba may be the second country to adopt cryptocurrencies as legal tender second to El Salvador.

Ethereum spot price against USDT has seen a spike in the upward direction from 3.2k to a daily peak price of 3.8k on September 1. Since the launch of the EIP-1559 at the London Hardfork, Ethereum has become deflationary. With more companies launching their projects on the Ethereum blockchain, we can expect ETH/USDT values to retest its previous all-time highs above 4.3k. The more Eth is burned with each transaction, the more scarce it becomes.


That’s all for this week! If you have any questions about what we talked about here or would like to explore trading with us, please reach out here.

Happy trading!

The Secure Digital Markets Team

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