In the 37th issue of the Broker’s Beat, Riot Blockchain acquires Whinstone and Blockcap expands its operations in Austin, Texas.
BY THE NUMBERS
Source: BTC Manager
“The CBSL gave the warning via a notice published on its official page on Friday (April 9, 2021). According to the Sri Lanka apex bank, investing in crypto assets such as bitcoin, Ethereum, and Litecoin, come with significant risks, as there are no regulatory safeguards concerning crypto investment and usagein the country.”
Source: The Block
“Nasdaq-listed bitcoin mining firm Riot Blockchain is set to acquire rival Whinstone for $651 million.”
“Concerns about the impact of proof-of-work (PoW) and bitcoin (BTC) mining on the environment are growing. As interest in cryptocurrencies expands, there is an increase in energy consumption. ”
Source: Coin Telegraph
“ North America-based crypto mining company Blockcap announced over the weekend it would be establishing new offices in Austin, Texas.”
“ Bitcoin as a climate change accelerant has become a popular meme over the last year, with countless articles written about its energy-hungry nature of mining derailing goals. While some see a crisis, others see an opportunity to use North America’s abundance of hydroelectric power — some of it orphaned in abandoned industry towns — as a way to match hashrates with cheap, green energy.”
THE BITCOIN BEAT
The price of Bitcoin has been moving sideways from the 10th of April when it came up again to the significant $59,420 level where it found resistance. We are now seeing a breakout from the minor triangle formed on Saturday with the price increasing by around 5% measured from its lowest point on Monday.
We can see that this breakout made a new all-time high on the hourly chart as an increase was made past the horizontal resistance at the $61,000 area. The momentum is looking strong, which is why further upside continuation would be expected.
If this is the next wave from the five-wave impulse that started on the 25th of March, we could see significantly higher price levels before completing this upside movement. This is the assumed 3rd wave which would be the strongest one and is projected to go above the ascending trendline from the triangle that formed from the 21st of February. But first, interaction with the ascending trendline would be expected, from which we are going to see if this count is valid.
Another possibility would be that this is another three-wave increase in the ending diagonal pattern, after which the price would end its bullish momentum, but for now, the primary could is a positive one.
In the last week, Bitcoin’s hash rate hit an all-time high but still hasn’t been accompanied by much selling from these miners.
It seems like the network continues to get stronger, and the parties making it stronger have no interest in cashing out. The miner’s position index from CryptoQuant shown below demonstrates that very few minutes are selling.
This isn’t a direct inflow/outflow, but is relevant nonetheless because it is another liquiity event that needs to be monitored.
Everyone is trying to answer the question of whether we’re in a market high or not, and we do not think we’re even close. Bitcoin has not started to flow into the exchanges and every indicator shows people holding BTC, not selling.
The hash rate valuation has made a move to the upside as well and managed to surpass its prior all-time high. It is currently sitting at 171.868M from its previous low of 161.456 made on the 5th of April.
This was expected as the uptrend continuation of the breakout momentum from the 17th of March when it was sitting around 156M and was moving sideways after a minor retracement. Now further upside movement would be expected as we have just seen the surpassing of the prior high.
The miner’s revenue valuation hasn’t made a new all-time high as it’s still been moving sideways. This is the continuation of the ascending triangle formation from the 14th of March, but with higher lows made, a breakout would soon be expected.
Currently, it is sitting at $58.8M as it came down from $64M, but as the price of Bitcoin started increasing again and is expected to continue, this valuation would likely follow very shortly.
The previous all-time high is at $64.765M, so a move above that level would be soon expected to start. Since we have seen an ascending triangle forming from the 21st of February as a consolidative pattern, it would mean that the next move to the upside would be significantly higher.
On the overall liquidity front, BTC futures open interest has just hit $27B across major exchanges. We expect things to get very interesting around the end of the month as options expire. Combine that with the Coinbase listing on Thursday and this could be a turning point for Bitcoin. For better or worse, we don’t know yet.
The new big announcement is that TIME Magazine will be collaborating with Grayscale Investments to create some video content, and will be retaining BTC on its balance sheet as part of the deal.
Binance also came to market yesterday with a big announcement:
“Binance is delighted to announce the official launch of its zero-commission, tradable stock tokens, allowing the users to trade fractional stocks.”
This is big news for the industry as a whole because of the cross liquidity it will enable and what traders will now be able to do with equities in the Binance ecosystem. Equities liquidity being taken by the crypto ecosystem seems like one more shot across the bow to traditional finance.
We don’t have any reports for you today, but later this week, we’ll have a report on NFTs to share with you. Keep an eye out! To opt-in for reports like this to be sent right to your inbox, subscribe here!