After bitcoin (BTC) shot up briefly on Tuesday and immediately corrected, the price returned to around the low from $18,500 – $18,600 off. Once again, this support held up and a few hours later, bitcoin was able to recover slightly. Yesterday evening, bitcoin came in at $19,500 – $19,600, but it has not yet been able to break through this. At the time of writing, bitcoin drops to $19,380 on Binance and $20,050 on Bitvavo.
#Bitcoin roller coaster pic.twitter.com/gpPFBa60sj
— Matthew Hyland (@MatthewHyland_) September 28, 2022
This means that the bitcoin price is up 3.2% today. Trading volume fell 9.3% in the past 24 hours. The total market cap stands at $373.5 billion and the dominance at 39.6%. The Fear & Greed Index comes in at 22 (Extreme Fear). Talk about it in our Discord surroundings!
Bitcoin Fear and Greed Index is 22 ~ Extreme Fear
Current price: $19,427 pic.twitter.com/0Uww8E94hr— Bitcoin Fear and Greed Index (@BitcoinFear) September 29, 2022
Bitcoin correlation and macro
Bitcoin held up remarkably stronger than stock markets like S&P 500 and Nasdaq last week. Nevertheless, it is still much too early to speak of a decoupling. The correlation between bitcoin and these markets is still very high. Bitcoin rose again yesterday along with these stock markets.
#BTC has not decoupled.
Folks who say this are likely looking at red vs green numbers and ignoring relative position.
In truth, Bitcoin, S&P, and Nasdaq are all skating above their June lows and wondering if the Dow Jones knows something they don’t.
The hopium can be harmful. pic.twitter.com/K9PMeruWZu
— 𝐓𝐗𝐌𝐂 (@TXMCtrades) September 28, 2022
This is probably because the US dollar index (DXY) rate slowed and fell slightly. That gave some room for risky markets and bitcoin to recover. However, other fiat currencies have it much harder. The falling euro and pound are causing investors to switch to US dollars and bonds, but also to bitcoin, reports analysis company Messari.
1/ The runaway inflation issue in the EU and UK has investors moving into the US dollar and US government bonds to stop the bleeding.
But there has also been a move into #Bitcoin…Is the hard money thesis of Bitcoin playing out before our eyes?🧵 pic.twitter.com/hB225s2hvZ
— Messari (@MessariCrypto) September 28, 2022
Bitcoin exchange reserves are increasing, miner reserves are decreasing
Yet many analysts still remain bearish for the coming period. Analyst IT Tech warns that bitcoin reserves on exchanges are still rising. That may be a bad sign as it usually suggests investors want to sell.
#Bitcoin reserves are increasing still.
be careful https://t.co/vEF2C9CbIk pic.twitter.com/E3IGWP584L
— IT Tech (@IT_Tech_PL) September 28, 2022
In addition, analysis firm Glassnode reports that the BTC reserves of miners are seeing a significant outflow since the price was rejected around $24,500. This may indicate that miners are still under heavy pressure from the low price, the high hash rate and high energy prices. As a result, they are forced to sell their reserves regularly in order to keep going.
#Bitcoin Miner Balance has seen large outflows since prices rejected from the local high of $24.5k.
This suggests aggregate Miner profitability is still under a degree of stress with ~8k $BTC/month being spent to cover USD denominated costs
Live Chart: https://t.co/SNpwJM6NAx pic.twitter.com/mT0Az1HMdv
— glassnode (@glassnode) September 29, 2022
Bitcoin Taro daemon launches
However, there is also positive news for bitcoin. Yesterday the long awaited alpha of Taro launched daemon. This makes it possible to create, send and receive assets on the Bitcoin blockchain.
Today we’re excited to announce the initial code for Taro 🍠, a new protocol to issue and transfer assets on #bitcoin and Lightning .
With this release, we’re one step closer to bitcoinizing the dollar, and the global financial system! 🌍💱https://t.co/mRrLyttgXv
— Lightning Labs⚡️🍠 (@lightning) September 28, 2022
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