Bitcoin exchange inflows drop indicating a bullish sentiment 📈

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

📅 Today

🔍️ Market Outlook

• Overall Bias - Cautious till $62,400 is broken 🙏 

• Bitcoin closed the week just below $60,000.

• The 200 Daily Moving Average at $62,400 is now a crucial level to monitor for Bitcoin.

• A rejection from $62,400 with a weekly close below $57,000 would be bearish.

• A breakout from $62,400 with a weekly close above $63,000 would be bullish.

• It is wise to not take any new leveraged positions till this moving average is flipped and prices break the 200 day moving average.

• So far, BTC has been rejecting this level consistently, showing some weakness in price action.

Bitcoin Exchange Inflows Drop 😅 

Bitcoin Exchange inflows have been dropping despite Mt. Gox and US Government transfer rumors.

Since early August, Bitcoin deposits to exchanges have significantly decreased, even amid ongoing concerns over the Mt. Gox bankruptcy estate and potential US government sell-offs.

Data from CryptoQuant highlights a notable shift: Over 194,000 BTC was moved to exchanges between August 4th - August 6th.

However, inflows have since then steadily declined, with August 20 showing a drop to just 31,000 BTC, indicating reduced selling pressure.

Despite speculation that Mt. Gox distributions could flood the market, this recent trends suggest that creditors are largely holding onto their Bitcoin rather than selling it off, which is bullish for Bitcoin.

📕 Educational

Key Takeaways for Jerome Powell’s Speech and What’s Next for the Fed 👇️ 

Federal Reserve Chair Jerome Powell delivered a pivotal speech today at the Kansas City Fed's annual economic conference in Jackson Hole, Wyoming. His remarks hinted at potential interest rate cuts, setting the stage for the FOMC meeting next month.

1/ A Shift in Policy Direction

Powell opened by stating, "The time has come for policy to adjust," signaling a shift in the Fed's approach. This has led to growing anticipation of rate cuts in the near future.

2/ The Path Ahead

Powell emphasized that while the "direction of travel is clear" regarding future rate adjustments, the "timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks." This has raised concerns among investors, especially as the market is expecting a 50bps cut in September. A smaller 25bps cut could lead to short-term volatility.

3/ Balancing Risks

Addressing the current economic landscape, Powell noted that "upside risks to inflation have diminished," while "downside risks to employment have increased." This marks a significant shift in the Fed's focus.

4/ Commitment to Stability

In his closing remarks, Powell reassured that the Fed remains committed to supporting a strong labor market while continuing to make progress toward price stability.

📊 Stat of the day

📈 Chart of the day

Rationale & Confluences

• Weekly horizontal support.

• Daily discount zone.

• Bullish RSI divergence.

• Bullish Stochastic Divergence.

• Wait for bullish hammer or bullish engulfing candle before entry.

• Daily close above $0.0005728 can be a trigger entry to DCA.

• 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 the best in class insights and highlights that keep you well-informed and ready. Remember to follow us on Instagram for additional updates and giveaways. Until then, see you next time!

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