Virtual Currency Market Analysis [July 27]

Cryptocurrency Practical Investment Article July 27

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Q&AWe will introduce parts of it in this corner.

【MagMag Magazine Award: 5th place】

From the major magazine site MagMag in 2020

the Magazine Award was announced

and we were able to win an award.

※MagMag’s distribution has ended

and this article has been migrated here.

【Cryptocurrency Market Analysis】

Price fluctuations of cryptocurrencies since last week

(one week) are summarized as follows

Summary: Current price (change from one week ago)

Bitcoin289万円（-10％）

Ethereum198000円(-7%）

Binance Coin34600円(-6％）

Ripple45円（-11％）

Solana5000円(-20%)

Cardano63円（-11%）

Polkadot910円（-14%）

Avalanche 2800円(-18%)

Uniswap900円（-10%）

ICP　884円（-12％）

Bitcoin has fallen from last week’s 3,000,000 yen to around 2,900,000 yen.

Bitcoin daily chart (in yen)

Regarding Bitcoin, the short-term range of 2.4–3.0 million yen was broken through the week before last, but prices have declined since last week, moving down to the 3 million yen level.

From the chart, it can be said that in the short term it is in a higher-range range (areas enclosed by the red horizontal line).

Looking at the red line around 3.3 million yen, you can see from past charts that the price has bounced back many times.

In other words, this price range is highly watched, and last week Bitcoin challenged this price but was rejected and fell.

Also, the price range around 20,000 dollars, which has long attracted attention, has not yet been breached.

Next, let’s look at the weekly chart (in dollars).

In the weekly chart, the short-term range has not been broken, but the chart pattern suggests

・From the late-2017 bubble peak, prices have rebounded and risen.

・Prices are just below the 200-day moving average (orange line) and have not broken through

This is one way to view it.

If Bitcoin were to break upward, the next target price would be around $26,000.

Next, the price of Ethereum (in dollars).

It has broken upward from the short-term range and is within the next higher range, like Bitcoin, but it is moving more solidly within that higher range than Bitcoin.

Thus, Ethereum appears stronger in price than Bitcoin.

On the 28thFOMC

A major event that determines U.S. dollar interest ratesFOMCis scheduled to begin at 3:00 a.m. on the 28th, and a rate hike is expected to continue.

Among experts, some view that Bitcoin will bottom out in the future at a time of FOMC cuts and before a recession (perhaps next year).

【Tesla's Bitcoin Sale】

The world’s leading electric vehicle maker Tesla has sold 75% of its Bitcoin holdings, about 100 billion yen.

The remaining 25% remains held.

From the following article

「The reason we sold a large amount of our Bitcoin is that the Covid lockdown in China was unclear when it would be eased. Therefore, maximizing cash position was important,”Covidhe said.

“It’s certainly possible to increase Bitcoin holdings in the future.”

—

This is the gist.

Turning financial assets into cash, as Tesla did, is not unusual at this stage.

In the long term, I think Tesla may again hold Bitcoin or Dogecoin.

In particular, Dogecoin is a currency Elon Musk has shown interest in and is currently undergoing upgrades for payments.

As for Dogecoin payments, it has become one of the supported currencies when Gucci started accepting cryptocurrency payments at its flagship stores, reflecting Elon Musk’s influence.

From Twitter’s formerCEOJack’s Block (formerly Square) may also enable payments.

※Jack and Elon Musk are on good terms

Also, Tesla plans to mine Bitcoin with solar panels in Texas, USA, and it may hold Bitcoin through mining without buying more, since mining yields Bitcoin as a reward.

Reference article

https://jp.cointelegraph.com/news/experts-reveal-what-tesla-s-936m-sell-off-means-for-bitcoin