Bitcoin went through a drop of 22.14 percent in the time period of just a month and Arthur Hayes’ family office opted for this stretch to allocate funds to the people putting together tools that hide how much of it anyone is holding. Most of the speculators are already on the exit phase so it can’t be said that the timing is just an accident. Additionally, the individuals that are still on the same boat are considering the long-term picture.
Annual grant report was published this week by Maelstrom. Half of the grantees are developing the Bitcoin privacy tools, Payjoin and Silent Payments. They both operate to mask the relationship between a performed transaction and the wallet that is linked to it. A program with that track record is pointing out a significant challenge in the Bitcoin development space.
The technical reality of Bitcoin
As for the price, Bitcoin continues to change hands at $62,968.89 and has seen a rise of 2.15 percent over the last 24 hours, with the CPI data being flat. The weekly data shows that the asset has lost 1.08 percent on the week and 22.14 percent over the last month. The monthly figure is the most relevant here. The 7-day hourly range highlights a low around $60,611.25 and a high close to $63,637.75 and this means that the asset has spent the last week trading slightly above a line which, on the daily, is at the pivot level of $61,675.20.
The momentum indicators are indicating upcoming volatility
The reading on momentum is not looking muted at all. RSI7 is showing a value of 21.39, RSI14 is sitting at 23.61 and RSI21 is at 28.44. Considering all of them, it appears to be oversold to the extreme and they essentially are at such a compression that is linked to the bottom before an aggressive move to the upside in a form of mean reversion or a brutal downward move regardless of even trying for a bounce first.
The MACD Histogram at -777.23 is showing up with a negative figure but getting lower relative to the Signal line reading of -3,394.50. This situation is suggesting more of a downside momentum with a slow pace and is not a sign of reversal. All the meaningful EMAs are also indicating an important trend for this largest cryptocurrency. SMA7 is standing at $62,144.98 SMA30 is at $72,400.79 and SMA200 is at $78,124.35.
The crucial fibonacci levels
The Fibonacci retracement above starting from the swing high and low of $59,108.92 and $82,005.96 places the 78.6 percent at $64,008.88 and this level is just relatively above price and if the asset makes a clean reclaim back above the level, the move can be termed as the first evidence that the shift is something more than just a dead cat bounce.
In addition to the above, the $67,855.59 and $70,557.44 levels (61.8 percent and 50 percent retracement) are also aligning with the simple moving averages, SMA30 and EMA30 creating resistance there, and this has accounted for more of the damage as price collapsed. Clearing and taking back that area with the support of 24-hour volume of $29.10 billion would be considered that the trend is now shifting and is following a transition from the downtrend to the uptrend.
The privacy gap of Bitcoin
Vikrant Sharma, founder of Cake Wallet, frames the gap directly. He told The Coin Headlines that
“Bitcoin is open and permissionless but without privacy, it’s a surveillance tool.” Sharma said. “People want to use Bitcoin on the go and they don’t want to reveal their history and balances and all that. Tools like Silent Payments and Payjoin v2 give everyday users the ability to transact privately. We’ve seen huge progress with Monero privacy tools. Now, Bitcoin users can take a step towards privacy as well.”
A 22 percent drop followed by the onchain data working against the market participants. The individuals watch the large wallet transactions live and that can trigger more panic among them. Payjoin and Silent Payments don’t impact the market price, but they hide one’s transaction from the other traders.
