Over the weekend, altcoins began to pull back after an enormous market-wide rally, starting with Ethereum. And while the market looked to be turning bearish, news of a massive Bitcoin buy made by auto manufacturer Tesla set the crypto market on fire.
On Bitcoin pairs, altcoins began to hemorrhage across the board. But according to a certain technical indicator and BTC dominance, the price action could be nothing more than a short-lived shakeout before the full alt season begins.
Tesla Buys Bitcoin, Crypto Fever Boils Over
As if the magma-hot crypto market needed another reason for coins to be trending, an SEC-filing revealed that Tesla had purchased $1.5 billion worth of BTC.
The buy itself was made some time prior, but news of it caused a wave of FOMO and prices began to rocket. Exchanges like Binance went down due to the sheer demand of investors looking to buy Bitcoin.
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Not only are they looking to buy more BTC in hopes of capitalizing of further upside, but given the nod of support from the likes of Elon Musk, crypto investors have even been dumping altcoins in exchange for more Bitcoin.
But according to the Ichimoku Kinko Hyo technical indicator and BTC dominance, looks can be deceiving.
News Leaves Altcoins Battered, But BTC Dominance Suggests It’s A Shakeout
BTC dominance is a metric that weighs the giant market share Bitcoin commands against the rest of the space. The top cryptocurrency has long enjoyed two-thirds or more dominance, but is at risk of losing it for good.
After another attempt to set new highs in dominance, BTC simmered down and fell back to under 63% as Ethereum broke its former record, and other alts soared.
BTC.D is being rejected by the Ichimoku cloud on weekly timeframes | Source: CRYPTOCAP-BTC.D on TradingView.com
And while it seems as though dominance is ready to reverse once again, the Ichimoku suggests this is bearish retest in progress. In the chart above, the green candle is back trying to break into the cloud on weekly timeframes. Three failed weeks have left wicks into the cloud, but further upside in dominance hasn’t materialized.
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After repeated rejections, the most likely scenario is down for BTC dominance. And if this happens, the recent » Read more
” href=”https://www.newsbtc.com/dictionary/altcoin/” data-wpel-link=”internal”>altcoin rallies were barely the start of what’s to come for upside.
On higher, monthly timeframes, the story told is similar. A massive green candle was entirely engulfed by bears, meaning altcoins have finally turned the corner against Bitcoin.
Even more bearish signals exist on monthly timeframes | Source: CRYPTOCAP-BTC.D on TradingView.com
Price action on monthly BTC.D charts show that a red candle is barely hanging onto the baseline on the Ichimoku also. A close below it, suggests further downside.
A plummet deep below 63% is likely if the support turned resistance continues to reject BTC.D. Could the greatest alt season on record be just days away? Adding more credence to the theory, recently, Google searches for “buy crypto” began to outpace “buy Bitcoin” for the first time.
Featured image from Deposit Photos, Charts from TradingView.com
Amid Rumors Of Dumping Its BTC Holdings, Elon Musk Maintains Tesla Hasn’t Sold Any Bitcoin
Elon Musk has been dragged under the bus by countless bitcoin proponents as the price of the flagship currency continues to take a downward movement. Bitcoin dropped 20%, sending prices to $45,000 as of yesterday.
As of publication, Bitcoin imitates analysts’ predictions that the asset could continue to dip for the most part of this week, and with Bitcoin now trading at $45,065 at press time, their analysis remains valid.
The Bitcoin selloff continues
Asides from the “bearish” tweets from Musk, which to many is simply just the Billionaire’s expression of his dissatisfaction with Bitcoin, Bitcoin could sustain more losses if Tesla sold its remaining Bitcoin holdings.
Following Tesla’s announcement, onlookers spotted a Bitcoin transfer of 19,259, worth over $872 million at press time. Analyst William Clemente observed that the transfer time coincided with Musk’s tweet, hinting that Tesla may have indeed called it a day for Bitcoin.
Musk reveals Tesla’s $1.5 billion holdings still intact, prices soar
However, Musk has recently cleared the air on whether the Bitcoin holdings are still under Tesla’s belt. In what could be considered the most recent positive tweet from Musk on Bitcoin, he wrote “To clarify speculation, Tesla has not sold any Bitcoin.”
Some excited Bitcoiners are holding on to the news as a sign that Tesla has not lost all interest in Bitcoin, despite Musk’s tweets that Dogecoin is a superior asset to Bitcoin. On the other hand, skeptical Bitcoiners are convinced that in a matter of time, Tesla will pull through with its Bitcoin sale.
Recall that Elon Musk teased that this could be the case, given that Bitcoin proponents have continued to critique Tesla’s decision. Shortly after hinting that Tesla might give up its $1.5 billion Bitcoin holdings.
However, Bitcoin has since surged by 7% since Musk’s clarification on Tesla’s Bitcoin holdings.
Bitcoin doesn’t need Elon Musk
Meanwhile, analysts’ who heavily bought the dip have insisted that Bitcoiners pay no mind to the bear market.
In unison, key players agree that “Bitcoin doesn’t need Musk. Rather, Musk needs Bitcoin.” It is unclear where the market is headed going forward, but the sentiments from top Bitcoin proponents similarly claim that the bear trend is only temporary, as Bitcoin is still yet to bottom.
Galaxy Digital report details Bitcoin consumes less energy than banking and gold.
Galaxy Digital has released a report on Bitcoin energy consumption, detailing how it consumes less than traditional financial industries and the value it can bring. The analysis uses several calculations to ascertain how much energy the Bitcoin network uses and how it stacks up against the banking and gold industries. The authors also noted that the energy usage criticisms are not usually applied to traditional industries.
Bitcoin’s annual energy consumption is estimated to be 113.89 TWh/yr.
Galaxy Digital report lauds Bitcoin for being transparent, while incumbent companies are opaque and don’t often disclose their energy footprint. The authors accept that the Bitcoin network consumes a great deal of energy but assert that this is exactly what secures the network and makes it so robust. According to Galaxy Digital’s calculation, the annual electricity consumption of Bitcoin is estimated to be 113.89 TWh/yr. For some perspective, the energy consumption of always-on devices in the US is 1,375 TWh/yr — 12.1 times that of Bitcoin’s consumption.
The total energy consumption of the gold industry is estimated to be 240.61 TWh/yr.
For the gold industry, the analysts took a look at all of the processes involved, including those directly emitting greenhouse gasses, those indirectly emitting them, and emissions stemming from refinement and recycling. Multiplying the total 100,408,508 tCo2 in emissions with the global IEA carbon intensity multiplier estimates the total energy consumption of the gold industry to be 240.61 TWh/yr. The analysts also noted that the consumption of the gold and banking industries is hard to estimate because of a lack of data on energy usage. This makes it difficult to “have an honest conversation” about Bitcoin’s energy use. The report estimated the banking industry’s energy consumption to be 238.92 TWh/year. Earlier, Tesla announced to discontinue bitcoin payments citing environmental issues.
Ethereum Co-Founder Vitalik Buterin Burns $6.7 Billion in Shiba Inu (SHIB) Tokens
Vitalik Buterin, who was gifted half of Shiba Inu’s total supply, has burned 90% of his holdings worth nearly $7 billion. The Ethereum co-founder further said he would allocate the remaining 10% to charitable organizations while also praising the “dog token community” for its generosity.
Buterin Burns $6.7B in Shiba Inu
The Dogecoin rise to the top led to the creation of numerous copycats that garnered significant attention in the past several weeks. Perhaps none became more popular than the self-described DOGE-killer – Shiba Inu.
One of the compelling features came from the anonymous developers who decided to send half of the total supply to Vitalik Buterin – the co-founder of Ethereum. The other half remains locked for liquidity on Uniswap.
Buterin, who donated 50 trillion SHIB tokens (and other dog-related digital assets) to India Covid Relief Fund last week, has decided to burn the majority of his Shiba Inu holdings now.
“I have decided to burn 90% of the remaining Shiba tokens in my wallet. The remaining 10% will be sent to a (not yet decided) charity with similar values to CryptoRelief (preventing large-scale loss of life) but with a more long-term orientation.” – he explained in the transaction hash.
Buterin outlined the severe problem COVID-19 has created for the entire world and added, “it’s important to think about the longer term future too.”
Upon the time of the transaction, the 410,24 trillion SHIB tokens Buterin sent from his wallet had a value of about $6.74 billion.
The booming popularity of SHIB caused a massive price surge in the past few weeks. It culminated in an all-time high at nearly $0.00004 after a listing on the world’s leading crypto exchange – Binance.
The Generosity of Dog People
Ethereum’s co-founder touched upon his aforementioned decision to donate a substantial amount of his dog tokens to charity organizations.
“Plenty of dog people have shown their generosity and their willingness to not just focus on their own profits but also be interested in making the world as a whole better.”
However, he also attracted some heat following his actions as some angry developers created coins with offensive names. As such, he urged the community to refrain from sending him new tokens without his consent in the future.
“I don’t want to be a locus of power of that kind. Better to just print the coins into the hands of a worthy charity directly (though do talk to them first.)”
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