🧘‍♂️ALERT: Crypto Profits, Explained

Market Meditations | December 13, 2021

THIS Is How To Read Bitcoin

Dear Meditators

The Bitcoin story has been confusing lately and the markets have been hard to read. We share one of the most comprehensive and easy-to-understand overviews of Bitcoin in this newsletter.

Today’s Meditations:

  • Sending Crypto via WhatsApp

  • Essential Technical Updates: $BTC and $ETH

  • Bitcoin Hash Rates Recover

  • Our Crypto Calendar

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? Sending Crypto via WhatsApp 

Late last week, WhatsApp announced that they are currently running a pilot program wherein users can send crypto to other users through their chat service.

  • Payments are powered by Novi (a digital wallet). Novi is owned by WhatsApp’s parent company Meta (formerly known as Facebook). 

  • There are no fees for sending and receiving money. There are additionally no fees for withdrawing to your bank. 

  • No limits on how many payments can be sent and payments are transferred instantly

  • Currently using a stablecoin pegged to the USD called Pax

Privacy is a concern that can arise when a new project such as this is undertaken. WhatsApp ensures users that sending crypto does not compromise security. They say that these payments will not affect “end-to-end encryption.” 

Pilot programs such as the one outlined above are part of Meta’s plans to continue their outreach, awareness, and applicability of crypto in their companies. 

Being able to send payments through WhatsApp with no fees will boost crypto usage around the world, especially where WhatsApp is being primarily used to chat. 

Our Market Meditations are longer format educational segments. Each letter features a Market Meditation which will deep dive and analyse a relevant crypto event, theme or tool. 

? Essential & Technical Updates 

1️⃣ BTC/USD 

The most essential Bitcoin analysis. 

3 Key Levels: $30k, $40k and $50k. 

At the moment, it doesn’t seem like we’re holding the $50k level. Further downside towards the $45k level is not out of the question. 

Let’s consider a macro analysis and how our bias changes from level to level.

  • Above the $50k level, we are bullish. 

  • Between $45k to $50k level, we are neutral bullish. 

  • Next up, the neutral zone. Between $45k and $36k. 

  • Neutral bearish between $36k and $30k. 

  • Finally, bearish below $30k. 

Actionably, longs are better in the bullish and neutral bullish zones. Less attractive in pure neutral zones and of course, shorts are favoured in a bearish zone. 

2️⃣ ETH/USD 

Not as many nice structural levels as Bitcoin so we prefer to consider Fibonacci levels. 

Price seems headed towards the 0.5 level, particularly if we lose the $4k level. 

The green arrows above show one possible trajectory. 

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⛏ Another BTC ATH?

Bitcoin may not have bounced back from its price decline since November, but the amount of processing power being devoted to computing transactions on its network just put in a new all-time high

So, why would it make sense that hash rate increases while price decreases?

  • China’s most recent ban of Bitcoin mining operations significantly decreased the overall hash rate worldwide. With miners now coming back online in new, more crypto-friendly locations, BTC’s Total Hash Rate has put in a new all-time high. 

  • Blockchain data reveals that the network has wholly recovered its losses, rallying over 110% in the past 5 months. 

  • The recent increase in computing power may indicate mining rig (specialized computers) orders placed in late 2020 and early 2021 have been filled and are coming online. 

Now that we’ve closed this chapter in Bitcoin’s history, we can assess the complete effect of a major superpower banning BTC.

The long and short of it? It emerged stronger only six months later

Considering somewhere between 65% and 75% of Bitcoin’s mining was in China, it’s quite remarkable how little actual effect the mass disruption had. Price didn’t go into a long-term sustained tailspin, the world didn’t stop using Bitcoin, investors didn’t scrap it from their balance sheets. 

Amid regulatory concerns and the ever-present energy consumption narratives, the China mining scare can be referenced for a little perspective. 

What is the hash rate anyway? Take a look!

On Mondays, our ‘Scan The Week’ section is designed to show our community what events and headlines we will be keeping an eye on.

Monday, 13 December

  • ? European Blockchain Convention

    The most influential Blockchain event in Europe is set to kick off 13 – 16 December 2021 in a virtual four-day event. 

  • ? Taker Protocol Introductory Article
    Taker Protocol shared their introductory article ahead of their testnet launch. In short, they aim to create a platform where borrowers can get loans quickly and lenders can provide liquidity easily.

Tuesday, 14 December

Wednesday, 15 December

  • ? Blockchain World

    Abu Dhabi will host the immersive Blockchain and NFT show on 15-17 December 2021 with celebrity guests and a focus on “Future Vision”.

Thursday, 16 December

  • ? How to Protect Your Crypto Assets

    All you need to know about protecting your assets from fraud and crime with CSITech’s Managing Director Nick Furneaux. Public demo webinar with on-demand option. 

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??‍♂️✍️ Stories in this newsletter were written by Kyle F., Misael Calleja, Nick T., Max P., Kimia K., Ellen B. and Koroush AK. Graphics were produced by Gerasimos P.

Not financial or tax advice. The content in this newsletter is for informational purposes only. Nothing in this email is intended to serve as financial advice. We are not financial advisors. Every investment and trading move involves risk. Do your own research when making a decision. See our important security disclaimers here.

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