At the time of writing this market report, two good news had been scattered by many investor ears.
The first of them, is the return of the negotiations by the firm Goldman Sachs, which restarts due to the great institutional interest in buying digital assets, including Bitcoin.
In addition to the fact that MicroStrategy continues to buy more Bitcoins than it should, and as a second instance, the report made by criptonoticias; where it explains that the sale of Bitcoin by miners, and after the last price drop, has progressively stopped. This is really news to value a lot. Why?
The report says that Bitcoin (BTC) miners are keeping more cryptocurrencies than they sell in the markets. According to metrics from blockchain research firm Glassnode, after two months of spending, miners are saving their rewards again.
The data shows that, between December 28, 2020, and February 25, 2021, miners exhibited a negative balance. That is, the sales were higher than the amount of cryptocurrencies they kept in their possession.
Additionally, it says that daily sales were higher during January with caps that reached almost 24,000 BTC. However, in February, the trend began to decline, with a sales cap of 6,100 BTC recorded on Friday the 5th.
After two months of sales, on February 26, Glassnode registered a positive balance in the miners’ addresses, which reached 1,368 bitcoins. A day later, the balance was also favorable, with 658 BTC saved.
The above is summarized in that if the saving trend of miners continues or increases, the price of bitcoin could rise even more. The reason is that it would decrease the supply of BTC in the cryptocurrency markets, which would accentuate the shortage of bitcoin.
Next Monthly Targets
The monthly closing of the cryptocurrency market was with more than $ 1.4 T and with the dominance of Bitcoin at approximately 62%. Our monthly analysis suggests strong resistance at $ 50285.45, limited by a stop price indicator, but with crucial support at $45090.39, where it would be a short-term historical price to open long positions.
However, it is valid to emphasize that we have not yet broken the gold zone of the 0.6 of FIBO at $ 69592.02 and under the wave 1 price projection of Elliot towards 100k. Below this zone and up to the mentioned support we may be within a correction region and correlated to the maximum of sales and profit-taking.
Other trend indicators suggest that Bitcoin is beginning to enter an overbought zone. Until that happens, the next suggested ways to take profits are: $ 69592.01; $ 86801.48; 104010.96; $ 125304.03; and $ 159722.97, which would be the price as the initial target to take the final profits, and when the bull-run ends.
Dangerous Wave
What many false financial advisers will not tell you in these weeks is that the market is really showing correction within an Elliot wave 4 and according to what we have analyzed weekly.
So do not be fooled, many of the indicators approve the primary trend of the possibility of Bitcoin creating a wave 5 that will lead to cross the resistance of $ 69592.01 and continue its way towards the touch of the high trend line that we have made.
We see then that the pattern created in the month of January could be repeated or simply maintained in correction support at 45090.39. But to confirm wave 5, it is necessary to break the ATH at $ 57625.52.
Most of the indicators show overbought and overvaluation, but with periods of re-accumulation. This means that there is interest, but the fear of a strong correction is growing.
Re-accumulation Period
Looking at the daily chart time, it tells us that Bitcoin could enter a new phase of re-accumulation ABC or ABCDE between the diagonal resistance of $ 59k and the diagonal support of $ 45777.85, and limited exactly by our EMA32; which for us symbolizes a trend indicator.
Currently, the price is touching the EMA9 at 48380.11 and as of this writing, with a further crossover of the EMA21 at $ 47632.34, indicating buying pressure. However, the highest resistance is at $ 55k, but with a protection wall at 51k, created by the crossing of Tekan-Sen and Kijun-Sen.
Other indicators show a strong buying force but with a tendency to corrections in short-term periods. This tells us that it is time to buy, accumulate and wait.
Buying Suggestions
These are the actions we have taken in our premium community so far:
At the moment, our portfolio for this month will include:
1. Maintain our Litecoin position. We can buy more at the prices of $ 172 and $ 154.
2. Neo is very cheap at the current price of $ 37.74. Let’s go making partial purchases.
3. IOTA was very cheap between $ 1 and $ 1.2.
4. Cardano (ADA) below $ 1 and at the current price correlation of $ 1.26 is a good accumulation zone. We believe that soon its value will be $ 3.
5. BTC is currently touching the EMA9 on the daily chart with the price of $ 48189.35, but there is strong resistance at the price of $ 51k, and limited by the crossing of Tekan-Sen and Kijun-Sen.
6. We did not sell Ethereum. We know the strong correlation that exists with Bitcoin. Currently this cryptocurrency is in a new phase of re-accumulation between 1345.99 and 1526.99.
Final consideration: we still do not have the confirmations to open leveraged positions.
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