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⚡Bitcoin Bulls Eyeing $69K🤑

Croxroad

20 Feb 2024 — 4 min read

☕️ GM Dear Plebs!

Here is Crox Road, your daily dose of orange pill that will turn you into a Bitcoin Maxi.

The menu for today:

➡️ Unlocking Bitcoin's Potential

Bitcoin has a historical tendency to surge over 30% in the eight weeks leading up to its reward halving, a pattern observed by 10X Research. The upcoming halving on April 19, coupled with Bitcoin's daily RSI crossing above 80, signals potential gains of over 50% in the next 60 days. Despite concerns about a price pullback, the broader uptrend remains strong, with projections of revisiting or even surpassing the record high of $69,000. This optimistic outlook is based on past data and the relative strength index (RSI).

The theory that Bitcoin hits its bottom around 12-16 months before halving and experiences upward trends before and after the event is well-established. In the past three cycles, prices surged by over 30% in the eight weeks leading up to the halving, which reduces the rate of supply expansion by 50%. The imminent halving on April 19 will cut the per-block reward to 3.125 BTC from 6.25 BTC.

Markus Thielen, founder of 10X Research, highlighted that Bitcoin typically rallies 32% in the 60 days preceding a halving. With Bitcoin currently around $52,000, this historical pattern suggests a potential rally close to the record high of $69,000 on or before the halving day. The crypto community's perception of the halving as a bullish event is contributing to aggressive buying of Bitcoin ETFs ahead of the event.

The positive sentiment is further supported by strong inflows into U.S.-based spot ETFs, indicating a bullish mood among traditional investors. Monthly RSI, a momentum indicator, recently crossed above 80, historically presaging accelerated uptrends with an average gain of 54% in the following 60 days.

However, it's crucial to note that past performance doesn't guarantee future results, and macroeconomic factors can influence trends. Despite potential risks, the current macro picture, including a stimulative fiscal policy in the U.S., suggests a supportive environment for increased risk-taking in the crypto market.

🐺 Market Shake-Up

Bitcoin and Ethereum took the lead in a significant crypto market event, witnessing over 54,000 traders facing liquidations as their leveraged positions were wiped out. This occurred while the total market capitalization approached $2.1 trillion. Over $145 million was liquidated within a 24-hour period across various exchanges, with $91 million of these trades registered as short positions, reflecting traders' anticipation of lower prices.

Despite the liquidations, the total cryptocurrency market cap experienced a 1.2% rise, according to CoinGecko, countering the downside bets. Notably, a $4 million Bitcoin (BTC) position in a USDT pairing on Binance, one of the largest crypto exchanges, made the single largest liquidation order.

Traders collectively lost at least $70 million between BTC and Ethereum (ETH) across both long and short positions. Despite this market turbulence, BTC and ETH have seen upward trends in the past week, with gains of 3% and 11%, respectively, amid bullish sentiment.

The recent approval of Bitcoin ETFs by the U.S. SEC on January 10 appears to be a driving force behind Bitcoin's rally, pricing in at $51,800 and holding a market cap of over $1 trillion, making it the 10th largest asset globally. Additionally, anticipation surrounding the upcoming Bitcoin halving in April is contributing to the positive market sentiment. Some believe the halving, coupled with BTC acquisitions for spot Bitcoin ETFs, could trigger a supply crunch, potentially leading to a parabolic run for the largest cryptocurrency.

Ethereum's momentum is influenced by the upcoming technological upgrade called Dencun. Developers expect Dencun to enhance data availability for layer-2 rollups, reducing transaction costs and improving scalability. The upgrade is set to ship to Ethereum's mainnet around mid-March after successful testing on testnets.

🔀 How to Buy Bitcoin with a Credit Card

To purchase Bitcoin with a credit card, using Binance as an example, follow these steps:

Step 1:Create an account and log in to the Binance exchange.

Step 2:Navigate to the option to buy cryptocurrency.

Step 3: Select the credit card and fiat currency you want to use for the purchase, and choose Bitcoin as the cryptocurrency to buy.

Step 4: Enter the amount of fiat currency you wish to spend. The corresponding amount of Bitcoin will be automatically calculated on the page. Keep in mind that cryptocurrency prices can fluctuate during the transaction process.

Step 5:If it's your first time, you might need to add your new credit card. Use the "add new card" option for fiat payments and provide the required card details, including the card address, expiry date, and CVV code.

Step 6:Credit card users will be redirected to their card provider's one-time password transaction page. Follow the provided instructions to confirm and authorise the payment.

Please note that these steps are specific to Binance, and procedures on other exchanges may vary slightly based on their user interfaces. Always ensure the security of your personal and financial information during these transactions.