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⚡Super Bullish BTC📈

Croxroad

18 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:

🦉 BTC Bullish Divergence

BTC analyst Ali Martinez posted a tweet that got people talking about something interesting happening with Bitcoin . Even though the price of Bitcoin has been hanging around $26,000 for a while, something kind of unexpected is going on. There's this sudden increase in the number of new Bitcoin addresses being created. It's like more people are getting into the game, even though the price hasn't gone up much. And the cool part is, experts are saying this is a pretty big deal, calling it a "bullish divergence" from what we usually see on the blockchain. Basically, it's a sign that even though the price isn't shooting up, there's still a lot of interest and activity happening behind the scenes in the world of Bitcoin.

A big sign that things are looking up for Bitcoin is the crazy number of people holding at least 0.1 Bitcoin. We're talking about a whopping 4,487,486 folks who now own that much or more. That's more than ever before! And that's not all – there are a whopping 49,138,848 Bitcoin addresses that have some amount of Bitcoin in them. It's like more and more people are getting in on the action, even when Bitcoin's price is bouncing around. Basically, it's a strong hint that more and more investors are getting interested in Bitcoin, no matter what the price is doing.

So, while all this interesting stuff is happening with Bitcoin, there's this talk among market analysts about "death cross." Basically, they're looking at past data and saying that when the 50-day moving average and the 200-day moving average cross each other in a certain way, it often led to a market drop in the past. But, here's the thing, we can't just rely on this one factor. Cryptocurrencies like Bitcoin are affected by a whole bunch of things, not just moving averages. So, it's important to take all those other factors into account before making any big predictions about what might happen next.

While we're all keeping an eye on what's happening in the crypto world, there's this other big thing coming up. The Federal Reserve, which is like the big boss of money in the U.S, is getting ready for an important meeting on September 20th. Now, most folks in the market are thinking they'll probably hit the "pause" button on something, and get this, a whopping 97% of the people involved in the market are expecting that to happen. So, it's a pretty big deal and definitely something to watch out for in the coming days. Stay tuned, we will be updating you guys in the coming days.

👑 BitGo and Swan Join Forces to Establish Exclusive Bitcoin Trust Firm

So, you see, the CEO of Swan, this guy named Cory Klippsten, is saying something pretty straightforward. They want to create a custodian service, which is like a safe place to keep your cryptocurrencies, but they don't want to mix different types of cryptocurrencies, like Bitcoin and all those other altcoins, in the same place. Why? Well, it's because each cryptocurrency has its own unique security challenges, and if you mix them all together, it can get kind of risky. So, Cory and the Swan team want to keep it simple and safe by focusing on just Bitcoin and not mixing it up with other digital coins.

BitGo is teaming up with a bitcoin financial services company called Swan. What they're up to is creating a trust company, but with a twist—it's going to be all about Bitcoin. They want to provide a safe place to store Bitcoin without getting mixed up with all the other digital coins out there.

Now, this partnership is in the works, pending approval from the regulators. If it gets the green light, it'll be a pretty big deal because it'll be the first trust company in the U.S. that's exclusively for Bitcoin. BitGo will handle the safekeeping of the Bitcoin, and Swan will bring their knowledge in bringing people on board and preventing fraud. It's like a tag team effort to make Bitcoin storage simpler and more secure for folks in the U.S.

Swan, the company that deals with Bitcoin, has been using BitGo as one of the places to keep its Bitcoin safe. They've also been working with another company called Fortress Trust, which is in Nevada and is actually in the process of being bought by Ripple.

Now, regarding that Ripple deal, the CEO of Swan, Cory Klippsten, mentioned that they're already taking steps to handle things differently. They're shifting the parts of their business that deal with following the rules and making sure everything's done properly to another partner. In fact, they've been getting cozy with Bakkt since early 2023, and they're already moving some of their customers over there. It's like a bit of a reshuffle behind the scenes to make sure everything's shipshape when it comes to their Bitcoin business.

Crypto custodian called Prime Trust, but things didn't go so well for them. In July, they had some major financial troubles and ended up in what's called "receivership," which is like a legal process when a company can't pay its debts.

What's interesting is that BitGo, another player in the crypto world, had plans to buy Prime Trust, but they backed out of the deal. And it turns out, Prime Trust had a pretty big financial hit - they lost $8 million in an investment they made in a digital coin called terraUSD, which went belly-up back in May 2022.

Here's the twist: After deciding not to buy Prime Trust, BitGo managed to raise a whopping $100 million in funding, and now they're valued at $1.75 billion. So, they rebounded pretty well despite not going through with the Prime Trust acquisition.

📏 Piercing Line

Alright, let's talk about another pattern in trading. It's called the "piercing line." Imagine you're in a situation where the price of something has been going down, and it hits a level where it seems to stop, kind of like a support level. Or, it's been going down, but it takes a little break, like a breather, before it potentially starts going up again.

Now, this pattern looks like this: first, you see a long red candlestick, which means the price went down a lot. But then, right after that, you see a long green candlestick. What's important here is that there's a noticeable gap between the closing price of the red candle and the opening price of the green one. Plus, the green candle should cover at least half of the red candle's length.

So, why is this interesting? Well, it suggests that there's some buying enthusiasm in the market. The fact that the green candle closes way higher than where it started tells you that there's a shift in momentum. It's like the buyers are saying, "Okay, we're ready to push the price up now," after a period of it going down. So, the piercing line can be a sign that things might be looking up.