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⚡Bitcoin Price Risk📉

Croxroad

12 Sep 2023 — 6 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:

💀 Potential Dip in Bitcoin's Price

Over the past day, its price has dropped by about 3%. That means if you had some Bitcoin yesterday, it's worth a little less today.

But here's where it gets interesting. The amount of Bitcoin being bought and sold in the last 24 hours has shot up by a whopping 99%! That's a big increase in trading activity.

Now, the tricky part is that even though more people are trading Bitcoin, it looks like the trend might keep going down. You see, there are these things called momentum indicators, and they're like little signs that help us figure out which way the wind is blowing in the Bitcoin market. Right now, these indicators are pointing towards a reduction in buying pressure, which basically means that people might not be as interested in buying Bitcoin as they were before.

Sure, let me explain it in a casual way:

You've got Bitcoin, right? Now, there's this thing called a "death cross" that's kind of like a dark cloud hanging over it. It's like when your short-term luck isn't looking so good.

What happens is, we've got two averages – the 50-day and the 200-day. Think of the 50-day average as a sort of short-term view, like what's been happening recently, and the 200-day average as the long-term view, covering a bigger chunk of time.

Now, this "death cross" thing happens when the 50-day average starts getting really close to going below the 200-day average. It's like a sign that the recent performance of Bitcoin is not doing so hot compared to its performance over a longer period.

So, to put it simply, when you hear "death cross," think of it as a signal that the short-term situation for Bitcoin might be on a downward slide compared to the long-term picture. It's like a warning sign for investors to be cautious.

The deal with Bitcoin's price. It might drop to around $24,500. This price is pretty important because it's where Bitcoin hit its lowest point in June 2023 and the last time it didn't bounce back much after going down.

If it falls below this $24,500 mark, it could keep going down and hit around $23,600, which it hasn't seen since May 13. And in a worst-case scenario, it could go all the way down to $21,300, which was the lowest it reached back in March. That would be a 15% drop from where it is now. So, things could get a bit rocky for Bitcoin.

Now, let's look at the brighter side. If Bitcoin can hold onto that $24,500 support level, it might have a shot at bouncing back. If more people start buying Bitcoin above this level, things could start looking up. It might even make its way back to $25,586, which would be a positive sign.

In a super optimistic scenario, Bitcoin could even break through the resistance zone between the 50- and 200-day moving averages at around $27,616. If that happens, it might continue rising and possibly reach the $28,838 mark. So, there's a chance for a bullish comeback if things go well.

Now, let's talk about big dreams for Bitcoin. In really optimistic scenarios, its price might skyrocket past that psychological barrier of $30,000 and head towards the highs above $31,804.

Here's why some folks are feeling positive: There are these things called RSI and MACD, which help us understand the momentum of Bitcoin's price. Right now, even though Bitcoin's price is dropping a bit, RSI and MACD aren't showing the same kind of drop. It's like they're not on the same page. And that difference suggests there might be a chance for a bounce back. So, some people are hopeful for a Bitcoin comeback.

🐂 Bitcoin Bulls Are About to Charge

So, there's this guy named Anthony Pompliano, and he's pretty well-known in the world of Bitcoin. He recently popped up on Fox Business and talked about something exciting – a big Bitcoin bull run that he thinks is just around the corner.

Pomp kicked off the conversation by mentioning how Bitcoin has been a bit all over the place lately, with its price going up and down. But here's the thing: he says that's totally normal for Bitcoin. It's like the rollercoaster of the investing world, and he wants folks to know that this kind of up-and-down action shouldn't scare them away from considering Bitcoin as a long-term investment.

So, in a nutshell, Pomp believes that even though Bitcoin's been a bit wild lately, it's got some serious potential for a big price surge in the near future. And he's not the only one who thinks that way – many investors are keeping an eye out for the next big Bitcoin bull run.

So, what's got Pompliano all excited about Bitcoin? Well, it's this growing interest from big institutions. You know, the heavy hitters in the financial world like BlackRock and Fidelity. They've been making moves to get approval for something called a "spot Bitcoin ETF" from the SEC (that's the U.S. Securities and Exchange Commission).

Now, why is this a big deal? Because it shows that these big shots are starting to see Bitcoin as more than just a risky gamble. They're viewing it as a legitimate way to store value, kind of like digital gold. Pompliano thinks that by the end of this year, the SEC might actually give the green light to a spot Bitcoin ETF. And as more and more institutions realize that Bitcoin can be a smart move to protect against things like inflation and economic uncertainty, it's adding fuel to his optimism.

He talked about how Bitcoin could shake things up in the world of traditional banks and finance. You see, Bitcoin isn't controlled by any one central authority, and anyone, anywhere can use it. That's pretty different from the way banks and financial institutions work.

Pompliano thinks this unique quality of Bitcoin could challenge the big players like central banks and those middlemen in finance. Sure, he's aware that there are rules and regulations to deal with when it comes to Bitcoin, but he's also a big believer in innovation.

In his view, the innovation in the world of cryptocurrencies will ultimately win out, and Bitcoin will have a major role to play in the future of finance. So, he's pretty optimistic about the potential for Bitcoin to disrupt the traditional financial landscape.

📈 Linear Line Chart

Line charts are a simple way to see how the price of something, like a cryptocurrency, has changed over time. Imagine a green line on a graph – that's what a line chart looks like. This line shows you how the price of the cryptocurrency in US dollars (or any other currency you prefer) has gone up or down.

To make these charts, people usually use the closing prices of the Bitcoin for each day within a specific time frame. You can choose how long you want that time frame to be, whether it's minutes, hours, days, weeks, months, or even years. If you're into quick trading, you might look at charts for minutes and hours. But if you're more of a long-term investor, you'd probably prefer monthly charts.

Now, line charts can come in two types: linear and logarithmic. In a linear chart, the price is shown in equal steps. In a logarithmic chart, it's shown in percentage changes. This means that if two price changes are different in how much money they are worth but are the same in terms of percentage change, they will look the same on the chart.

Both types of charts are useful. Linear ones help you see how fast the price is changing, while logarithmic ones make it easier to spot trends. So, you can pick the one that suits your needs best.