Technically Speaking – February 28, 2024

Let’s be honest here, Coinbase’s problems are not the reason prices tanked after the rally, but it was a catalyst. From a technical analysis perspective, a small sneeze would cause some retracement. 🤧

BTCUSD $500/3-box Point & Figure Chart – Click to enlarge.

The chart above is a Point & Figure chart. You don’t need to know anything about it except for that hugenormous column of green X’s.

If you really want to learn about it, I recommend you watch this video here.

That massive column is called a Spike Pattern in Point & Figure – it’s the definition of exuberance and what you’d consider ‘overbought’. 🤯

The same Spike Pattern we just saw on Bitcoin’s chart is on Ethereum’s chart:

ETHUSD $20/3-box Point & Figure Chart – Click to enlarge.

How bad could the retracement get? No idea. I know that a common retracement from a Spike Pattern is 50%. For Bitcoin, that’s a return to $57,500. For Ethereum, that’s a return to $3,150.

But let’s be honest here – the initial moves at the beginning of a new crypto expansion phase can be insane – so while the technical retracement is commonly 50%, crypto’s bull runs are anything but common. 🧠

Bitcoin’s Hash Rate More Than 6x’s In Two Years

Bitcoin’s hash rate has been on a tear, with a staggering 600% increase in just two years. 😲

The hash rate, which measures the processing power of $BTC‘s network, has been on a steady upward trajectory, indicating a robust and healthy network. This increase is a testament to the growing number of miners joining the network, despite the market’s volatility.

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IRS To Crypto Exchanges: ‘We’re Just Here for a Quick Audit… And Maybe Your Lunch Money.'”

The US Treasury Department and IRS are pushing for stricter reporting rules on cryptocurrency exchanges. The aim? To bridge the gaping digital asset tax chasm. 🌉

The proposed regulations, set to kick off in 2026, are part of the Biden administration’s broader strategy to clamp down on potential tax dodgers in the crypto realm. Remember the 2021 rules aimed at curbing tax evasion? Those were projected to boost tax revenues by a cool $28 billion over a decade.

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