Daily Crypto NewsEDITION #219, 20 May 2021

Feast in Time of Plague

Hey #Moni Maker 💃

Today, the day of the traumatologist is celebrated all over the world. After yesterday's market jumps, many crypto cats would clearly find it useful: quite a few people flew off the cryptocurrency slides, many of them broke their faith in crypto, someone broke faith in the future.

Don't scoff or laugh at newbies. Everyone had this experience. This is normal.

Let's read the digest better? Let’s go!

BTC dropped to $ 30,000. The fall was 50%, which is the largest drop in recent years.

In connection with this fall, more than 740 thousand traders were liquidated and positions for $ 8.2 billion were liquidated, which is a record value in the entire history of the crypto market.

Distribution of liquidations:

$ 3.07 billion on Huobi;

$ 1.54 billion on Bybit;

$ 1.19 million on Binance;

$ 976 million on OKEx;

$ 620 million on Deribit.

So what?

We will not give any comments, f*ck it.

To build muscle, you need to go to the gym at regular intervals. Roughly the same with bitcoin - it will not work just to learn about it, knowledge should always be refreshed. Maestro Tony will help you with this today. Follow his Twitter, it is here! Let’s go!

All models are wrong, some are useful. Part IV: The Bitcoin Rainbow Chart

The Bitcoin Rainbow Chart was created by Über Holger, CEO of Holger and responsible for the content of the website, using a logarithmic regression introduced by the Bitcointalk user trolololo in 2014, with which the coloured bands were created.

However, Holger admits that these bands are completely arbitrary and without any scientific basis, so they are only correct until one day maybe they won’t be anymore.

However, the chart allows you to observe price movements over the long term ignoring the inevitable disturbances generated by daily volatility, and getting an idea of what were the best times to buy or sell BTC in the past.

Holger states that the Rainbow Chart is not investment advice, because past performance is not indicative for future evolution, but divides the bitcoin price into eight coloured bands: bubble, sell, FOMO, bubble formation, HODL, still cheap, accumulate, buy and discounts.

The names of these bands are evidently humorous, but behind the apparently superficial and amusing form of this graph lies some truth.

In fact, the curve of the eight bands seems too perfect not to make sense. That is, until now these bands really seem to have given interesting suggestions on how to behave when buying or selling BTC, although as Holger says this is absolutely not enough to know whether this will be the case in the future.

First of all, both post-halving bubbles ended in the “bubble” band, or beyond, while the three minimum pre-halving levels have always been included in the “discounts” band.

However, some doubts may arise from the August 2013 peak, with the price at $180 being in the “sell” band. It’s true that the price then fell below $60 in June, but by November it was already back above $180..

Other doubts may come during the peak of June 2019, when the price rose to $13,000: in the chart this corresponds only to the HODL range, while at the end of the year the price had more than halved

So even analyzing the past data, these eight bands do not give precise indications when to buy or when to sell, except when the price curve reached the extreme bands.

The curious thing is that, according to this chart, the price of BTC would currently be in the “discounts” band, very similar to where it was just before the two previous halvings.

Interactive chart: blockchaincenter.net

The market capitalization of the dollar-pegged stablecoin Tether (USDT) has surpassed the $ 60 billion mark and has grown by more than $ 10 billion over the past month.

Also yesterday, 1 billion USDT was printed, thanks to this batch of coins, the total supply is: 60.4 billion USDT.

So what?

Here's something, but yesterday the stables saved so many traders from going out of the window. Not all, but many. Thanks, Tether. Thank you for not scam.

And you...buy Bitcoin! 😉 (it's a good time!)