Argentina’s President Milei Advocates Bitcoin and Currency Freedom 🙏

Welcome to the Daily Coinsauce Newsletter, its good to be back. If you like our regular updates, then let us know with a vote and comment at the end. Let’s get straight into today’s highlights.

📅 Today

🔍️ Market Outlook

• Overall Bias - Neutral 📈 

• BTC has broken all it's AVWAPs, and also broke down of it’s crucial $66,000 support zone.

• We now have only 3 important support zones to focus at on the higher time frames :

  1. $64,800 - 4H horizontal + 4H Discount + 4H Bullish OB

  2. $60,800 - Daily Bullish OB + Daily Horizontal

  3. $57,100 - Macro horizontal + 200D MA

• BTC dominance has been rejected off it’s 56.46% resistance. This means alts can find a sense of relief if this rejection continues deeper. Dominance can likely keep falling till 53.8% - 54% on the higher time frames, and till 55% on the lower time frames, before potentially reversing from one of those supports.

President Milei Advocates BTC & Currency Freedom 🙏 

Argentina’s President Javier Milei has expressed his support for the use of Bitcoin (BTC), alongside other currencies in the country as part of his strategy for free currency competition

The country is potentially looking to collaborate with El Salvador and learn from its pioneering experience with Bitcoin and crypto adoption.

Milei wants free currency competition, allowing options like Bitcoin, West Texas Intermediate (WTI), and British Thermal Units (BTU) for businesses.

Despite this, Argentina faces challenges like inflation and tax uncertainties with cryptocurrencies. Stablecoins are currently favored for payments due to the country's economic instability

BTC Exchange Balances Fall to Record Lows ⚡️ 

As of June 19, 2024, the Bitcoin exchange reserve, i.e the total amount of Bitcoin held on exchange, has dropped to a three-year low, with only ~2,825,703 BTC available, according to CryptoQuant.

This represents a significant decrease from the 3,039,000 BTC held on exchanges in January 2024.

Such low reserves suggest reduced selling pressure and potential supply shocks, given the limited Bitcoin available for purchase post the 2024 halving.

📕 Educational

We are now 35 days into the current miner capitulation, with the average duration being 41 days.

This indicates that some miners are still facing significant financial pressure due to the previous halving, which has rendered their operations unprofitable.

The hash rate has dropped over 12% from its peak on May 26, with the next difficulty adjustment scheduled for June 20 expected to be slightly positive.

However, the hash rate’s decline has not reached the anticipated 25% post-halving drop, demonstrating unexpected resilience.

This resilience can be attributed to two factors: elevated transaction fees driven by Runes and Inscriptions and miners’ strategic financial planning.

Miners have built up reserves and are offloading Bitcoin to sustain their operations.

Over the past 30 days, more than 3,000 BTC has been distributed by miners, continuing a trend of significant distribution since December 2023, unmatched since the 2017-2018 period.

On the bright side, once the miners capitulating phase is through, it nearly always results in a huge rally.

Source : Glassnode

📊 Stats

📈 Chart of the day

• Rationale :
  

• Daily horizontal support on a macro level.

• Daily discount zone.

• Trying to re-claim 200 Daily moving average .

• Multiple bullish divergences on 4H timeframe.

• 1H bullish order-block.

• Source : Cointraction 

🤣 Meme of the day

That concludes our update for today!

We appreciate you joining us for the latest news. Our aim is to provide insights and highlights that keep you well-informed and ready. Remember to follow us on social media for additional updates and giveaways. Happy trading, and see you next time!

Disclaimer : None of the content shared in the newsletter is financial advise. Always do your own research before investing.