After the bitcoin halving, we have observed how the price, which seemed like it was going to go very strongly upwards, is having a pause movement and even a certain bearish movement.
Today I would like to comment on two important topics, for the long term, for bitcoin; Relative strength (technical analysis) and massive buying of bitcoin by strong hands (fundamental analysis). Also and speaking of the halving, I bring the reader the Bitcoin Block Subsidy Value graph.
Relative Strength
It is important to understand, for those less experienced in technical analysis, that prices in a large long-term movement usually have shorter-term corrections to find guarantee supports to continue rising. It is always like this and for bitcoin, in the same way, it is the same.
As I write these words, bitcoin is in zones of 60,000 USD, this zone being very interesting, since the zone 60,000 USD is important for its technical implications. I feel this area, resistance of the year 2021 (it did not manage to exceed USD 70,000 in the last bullish movement after the halving of 2020) and therefore any resistance overcome, according to the technical analysis manual, begins to try to be support.
Is this area therefore trying to become support for bitcoin?
Let's remember that in short terms, it could even try to continue going down, this point being an opportunity, especially for strong hands in accumulation, which I will explain later. But for now, hold on (extension to $57,000).
More about Relative Strength: The relative strength of a price is an indicator that, if not used, must at least be taken into account, especially for something as disinflationary as bitcoin.
The same situation as the current one, on the monthly chart of bitcoin, suggests that the price has not stopped rising in the long term.
Similar areas in monthly reference for relative strength, speaking of past prices, provide us with very interesting information:
When the price was at 1,115 USD, according to a similar situation in relative strength on the monthly chart, the price finally rose to the 20,000 USD area (2017). Or more recently the price was at 28,000 USD and the same relative strength zone on a monthly basis, the end of that movement was the 65,000 USD zone (2021).
What does this mean? The relative strength for long-term movements should therefore be observed in longer terms, since in short movements, the price will always tend to make movements contrary to the general trend, to unload on buying.
Strong Hands
While this happens, relaxation of the price due to short-term purchases, we observe how, every day, large hands, such as Metaplanet, a Japanese company, join others worldwide in acquiring all the bitcoin they can.
Therefore small hands thinking in the short term and big hands, in hoarding bitcoin in the long term. On June 11, there was a request to purchase bitcoin from Metaplanet, with the purchase of 23,321 bitcoin acquired. Already owning at that time 141,072 bitcoin.
Not only large funds and North American corporations are already entering bitcoin. We are starting the long-distance race, I think.
More about Metaplanet: The directors of the Japanese company, which is listed on the stock exchange, have authorized a few days ago a plan to buy bitcoin for an approximate value of 6.25 million dollars (one billion yen). The purchase will be financed through capital obtained from the issuance of the second series of ordinary bonds. In other words, bonds (debt) are even issued to buy more bitcoin even...
This type of purchases by strong hands will continue to occur by funds and corporations worldwide, they are not isolated cases, especially thinking about the few bitcoins that remain to be mined, another fundamental fact to take into account. It is his third purchase in 2 months and he could continue purchasing more. The plan to add BTC to Metaplanet's treasury has received backing from partners and investors such as Sora Ventures, UTXO Management, and Mark Yusko of Morgan Creek Capital.
The approval of cash ETFs for bitcoin has also given a great boost to the crypto asset.
I add now to finalize the Bitcoin Block Subsidy Value.
The bitcoin block subsidy, also known as the block reward, is the amount of newly minted bitcoin that is awarded to the miner who successfully mines a new block. This reward is halved approximately every four years (or every 210,000 blocks), a process known as "halving", the famous halving.
These are the block subsidy values over time:
Genesis Block (first block) to Block 209,999: 50 BTC
Block 210,000 to block 419,999: 25 BTC
Block 420,000 to block 629,999: 12.5 BTC
Block 630,000 to Block 839,999: 6.25 BTC
Block 840,000, on April 20, 2024, being the moment in which the subsidy was reduced to 3,125 BTC.
The block subsidy is part of the miner's reward, which also includes transaction fees for transactions included in the block. This mechanism ensures that new Bitcoins are introduced into the supply in a controlled and predictable manner, ultimately capping the total supply at 21 million BTC. Inflation also comes into play here, which reduces over time. Don't forget that bitcoin is disinflationary.
This content is for informational and educational purposes. There is no consumer protection. Your capital is subject to risks. It is not a recommendation to buy or sell any asset or crypto asset. Please do your own research (DYOR) or contact your trusted financial advisor/Este contenido tiene fines informativos y educativos. No hay protección al consumidor. Su capital está sujeto a riesgos.
