Will Bitcoin Defund Bad Political Actors in 2022?
The Bitcoin hash rate has recovered to pre-China-ban levels and is currently sitting around 175 EH/s. Litecoin’s blockchain has also recovered, following Bitcoin’s lead.
Meanwhile, Bitcoin price-action meanders at the bottom of the range awaiting the next directional signal. Can on-chain data provide any clues?
Let’s dig in.
Bitcoin Hash Rate Reaches All Time Highs; Litecoin follows
Six months after the global bitcoin hash rate dropped to as low as 84EH/s in June, the network has predictably recovered and currently sitting around 175 EH/s last week.
The development comes months after the Chinese government banned mining, and cracked down on the industry — in a bid to eliminate contenders for its digital Yuan.
Check out the full article here!
Dear readers,
The purpose of this newsletter is to provide context to cryptocurrency markets. This analysis takes time to write-up and it’s released every Monday and Wednesday. I am not perfect and this is not a science — nor is this newsletter a signals service. While I cannot promise perfection I do my best to be honest and transparent. I am also working on keeping my wording simple and to the point. Please bear with me.
Thank you for reading.
Feel free to contact me with feedback on contact@chrisoncrypto.com.
Technically speaking
BTC at Range Lows
After setting a floor price ($41,600 Bitfinex) last week, BTC/USD has chopped beneath the pivot at the range lows.
On lower time-frames ( 4-hour), early reversal signals have yet to fire. If the 4-hour super-trend ($51,700) flips into a buy signal, eager bulls can look to position themselves for a reversal.
So far, most price-action since the drop (minus volatility spikes) has been concentrated between $52,000 and $47,000.
Zooming out, there isn’t much that has changed since last week in terms of naked price-action. Bitcoin is ranging as expected.
The Relative Strength Indicator (RSI) has fired a buy signal, however, opening up an increased likelihood for price/signal divergences to develop moving forward. Since Oct. 21, the RSI has trended lower — first setting a bearish divergence before price eventually followed. The opposite is just as true and tends to happen frequently in a bull market.
The bullish higher-low price structure hasn’t changed since July.
That said, closing daily candles within the blue box would be an early warning sign. Closing below the Saturday (Dec. 4) low would confirm market weakness opening the door to $30,000.
Technical levels to watch haven’t really changed since last Monday. The same is true of futures data,
No Signs of a Bear Market
Notably, signs of a bear market have yet to materialise on-chain.
As discussed in the telegram channel, it would be highly irregular for Bitcoin to have entered into a bear market with current data sets. If that were to happen, one could reliably give less importance to on-chain data more generally — which is touted as a high-time frame or macro tool for price-direction. In fact, the on-chain industry would become unnecessary in its entirety since its purpose will have been wholly refuted.
This is unlikely to happen.
The Corona-scam is Unraveling
Allow me to switch hats for a moment here. If this isn’t your cup of tea feel free to skip this section.
For years now, I have attempted to point out inconsistencies with the fear-mongering corona virus narrative. Debunking this narrative is not hard if one approaches the situation objectively while deferring to more learned experts on medical matters. Doing what I do, I can smell unsavory motives a mile off. It’s not a science and I am not gloating. However, as soon as the political undertones were clear, the situation started to make more sense. It became obvious that science was turning into a political tool; that decision making institutions like the World Health Organisation (WHO) were either criminally incompetent, or criminal all together.
Today, literally millions of people are protesting against vaccine passports and draconian mandates world-wide. It is clear that these measures are not born out of health concerns, nor are they remotely related to them.
As covered in a newsletter on Nov. 15, the media and political silence is deafening. The contempt of a brainwashed minority for their neighbours is palpable, and is only out-shined by an insistence on our common humanity and decency.
But the veil of mass psychosis isn’t going to last much longer as the immense (almost incalculable) damage to our economies, businesses, mental and physical health take precedence.
In the United States, the official inflation figures just hit 6.8%, which means that real inflation is closer to 10% or higher — all for a virus with a mortality rate approaching that of influenza. Try square that circle.
Against this backdrop, one can’t help but wonder whether Western folk will choose to defund bad political actors directly. One can’t help but wonder if bitcoin is up to the task.
Bring on 2022.
Catch you later.
p.s. This is my opinion. It is not financial advice.
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Christopher Attard
Founder of Chris on Crypto
Contributor to www.cityam.com
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Originally published at https://mailchi.mp.
