Market report for traders

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What’s happening in the market?

Whales and big businesses grabbing Bitcoin

The last 7 days saw some major acquisition of Bitcoin (BTC) by various organisations such as Luna Foundation and Enterprise software development firm, MicroStrategy. Terra’s Luna Foundation scooped up 4,130 Bitcoin (AU$236M) in an over-the-counter exchange through a partnership with the Avalanche Foundation, taking LFG’s holdings to AU$2.28b in Bitcoin reserves.

MicroStrategy subsidiary, MacroStrategy acquired 4,197 Bitcoin (AU$250M) taking the parent company’s BTC holdings to 129,218 and a total aggregate purchase price of AU$5.2B. CEO, Michael Saylor highlighted the digital asset's potential as a "hedge against inflation".

Despite Bitcoin’s recent price fluctuation, there are some ‘whales’ continuing to buy and hold large volumes of BTC with one undisclosed whale, according to BitInfocharts, buying and adding to his wallet AU$1.3M worth of BTC every day.

Crypto payment options on the rise

In keeping with the ever changing tides of crypto and its use in the modern world, Australian convenience store On The Run (OTR) will reportedly allow clients to pay for products in cryptocurrencies by partnering with the digital asset exchange CryptoCom. The firm’s parent company, Peregrine Corporation, will eventually embrace crypto settlements at its Subway, Oporto, and Smokemart retailers as well.

Meanwhile, Twitter’s biggest shareholder Elon Musk has suggested making the meme cryptocurrency Dogecoin (DOGE) a payment option for the Twitter Blue subscription service. The newest member of Twitter’s Board of Directors has big plans to bring “significant improvement” to the social juggernaut during his finite two-year tenure on the board.

Technician’s Take

After a sharp correction over the last week Bitcoin was down 16% for the last seven days. The first warning signs appeared earlier this week when some of BTC’s stablemates, like Ethereum, were rising while Bitcoin could just not hold ground. The market as a whole is currently down, but Bitcoin is definitely showing signs of a little more selling pressure than some of its peers.

With the looming Russian default, it could be hypothesized that this could be one of the major factors pulling down the price, time will tell.

BTC showed some interim support around the 50MA and now seems to be seeking out its previous support of AU$51,500. Volume has been somewhat lackluster, showing that it’s not taking a lot of pressure to move the price right now. 

MACD is very much bearish, and RSI is nearing oversold.

As mentioned many times before, with volatility comes opportunity. These volatile markets often present great opportunities to pick up a bounce, whether it is part of a short term trade or part of a greater dollar cost averaging strategy. 

As always, tight stops and good money management are paramount at all times, but in particular when the market starts seeing more volatility.

Beginners recap:

• Bitcoin (BTC) down 16% for the week
• Relative Strength Index (RSI) still nearing oversold
• Moving Average Convergence Divergence (MACD) is very much bearish
• Watching for a bounce

Disclaimer: Information provided is for educational purposes and does not constitute financial product advice. You should obtain independent advice from an Australian financial services licensee before making any financial decisions.\ As cryptocurrencies remain volatile, all prices and percentages may have changed since the time of writing.