Blockchain

The path from the Bitcoin whitepaper to the bustling ecosystem of Web3 technology has been nothing short of revolutionary. In this guide, we trace the evolution of digital currencies as they pave the way for the Web3 frontier—a new internet paradigm underpinned by blockchain technology and decentralized ideals.

This guide aims to provide a comprehensive understanding of Web3 technology. We’ll delve into the web3 meaning, web3 projects, web3 domains, explore its foundational concepts, and examine how to invest in web3. As we unpack the essence of Web3, we’ll reveal why it’s not just a technological leap, but also a cultural and economic revolution, poised to reshape the internet as we know it.

Introduction To Web3 Technology

In the rapidly evolving landscape of the digital world, Web3 technology emerges as a groundbreaking paradigm shift, redefining how we interact with the internet. Rooted in the principles of decentralization, transparency, and user empowerment, it represents a significant leap from the traditional, centralized web—often referred to as Web2.

At the core of Web3 lies blockchain technology, the same innovative force that brought cryptocurrencies like Bitcoin into the limelight. However, it extends far beyond just digital currencies. It encompasses a wide array of decentralized applications (dApps), smart contracts, and a new generation of internet services and platforms that operate autonomously and are not controlled by any single entity.

Web3 Meaning: A Comprehensive Guide

The web3 meaning captures the essence of a decentralized online ecosystem underpinned by blockchain technology. It is an umbrella term that encapsulates an internet where users have sovereign control over their data, identities, and transactions. This vision for the next web generation stands on the pillars of decentralization, openness, and greater user utility.

Unlike its predecessors, Web3 facilitates a user-centric internet, harnessing the principles of cryptocurrency economics, collective governance, and immutable records. Within ‘what is web3 technology’, we find the blueprint for a participative and interoperable web, where the networks are maintained by the users themselves rather than by tech conglomerates.

Furthermore, the web3 definition extends to include not just the structural and functional changes but also the philosophical shift towards a self-governing, resilient, and equitable digital space.

Web3 Definition

Web3 is defined as the third generation of the internet, characterized by decentralized networks that utilize blockchain technology and token-based economics. It’s a shift from consuming content to owning and contributing to the network’s assets and operations. This succinct web3 definition encompasses a future where the internet operates autonomously, enabled by distributed ledger technology, and is free from the control of centralized authorities.

The Evolution from Web1 To Web2 To Web3.0

The digital world has undergone a significant transformation from Web1 to Web2, and now to Web3.0, each phase marking a pivotal shift in how the internet is structured and utilized. This evolution can be seen as a journey from static web pages to interactive experiences, and finally to a decentralized, user-driven web.

Web1 Meaning

Web1, often referred to as the ‘Static Web,’ was the internet’s first iteration. It was characterized by static websites that were purely informational and offered limited interaction. During this era, content was created by a small group of producers and consumed by the users, who had no direct way to contribute or alter the information. The key aspect of Web1 was its simplicity and ease of access to information, laying the foundation for the more interactive web that followed.

Web2 Meaning

Web2, also known as the ‘Social Web,’ revolutionized the internet by introducing interactivity, social networking, and user-generated content. This era saw the rise of platforms like Facebook, YouTube, and Twitter, where users not only consumed content but also contributed to it, creating a more dynamic and collaborative web experience. The shift to Web2 brought about significant changes in how people connect, share, and communicate online, paving the way for a more connected global community.

Web3 Meaning

Web3.0, or simply Web3, represents the next phase in the evolution of the internet. This iteration is defined by its decentralized nature, leveraging blockchain technology and token-based economics. It’s a paradigm shift from the centralized platforms of Web2, giving users unprecedented control over their data and online interactions.

Web3:// is a concept that exemplifies this change, indicating a move towards a more secure, private, and user-empowered web. Web3 introduces concepts like decentralized finance (DeFi), non-fungible tokens (NFTs), and decentralized autonomous organizations (DAOs), signaling a significant leap towards a more open, transparent, and equitable internet.

Web3 Explained: Beyond The Basics

Delving deeper into the realm of Web3, it’s crucial to move beyond the basics and understand the intricate mechanisms that define this new digital epoch. It’s about a transformative shift in how we perceive and interact with the web—a shift toward a more decentralized, transparent, and user-centric online world.

How Web3.0 Is Changing The Internet Landscape

Web3.0, often simply referred to as Web3, is dramatically altering the internet landscape. This transformation stems from its decentralized nature, distributing power and control across the network instead of centralizing it in the hands of a few dominant players.

This shift in control signifies not just a technological change but a fundamental shift in digital power dynamics. It ushers in an era of increased privacy, enhanced security, and greater user sovereignty, making the internet a more equitable and participatory space. It’s an exciting time, as Web3 opens up new possibilities for creative and economic freedom online. Moreover, it also has the potential to fundamentally disrupt the Web2 business models of platforms like Facebook.

Disrupting Traditional Business Models

Web3’s approach to data ownership and user empowerment directly threatens the established Web2 models. In the Web2 ecosystem, typified by platforms like Facebook, user data is a commodity. These platforms collect and monetize user information through targeted advertising, creating revenue streams heavily reliant on user data. Web3, however, introduces a paradigm where users have full control over their data.

Through blockchain technology, Web3 enables individuals to own and monetize their data, participate in governance, and directly benefit from their contributions to the network. This shift in data ownership and control represents a seismic shift in how online business models function.

For instance, in a Web3-based social media platform, users could earn tokens for their content, engagement, and community contributions. These tokens could represent actual stake in the platform, giving users not just a say in how the platform evolves, but also a share in the economic benefits.

This model starkly contrasts with Web2 platforms, where user activity generates value that primarily benefits the platform owners. It’s model of shared ownership and profits poses a significant threat to the traditional ad-revenue-driven models of Web2 companies.

Impact On Established Tech Giants

Let’s consider a hypothetical scenario where a major platform like Facebook faces a Web3 competitor. In this scenario, the Web3 platform empowers users with control over their data, allowing them to opt into advertising schemes voluntarily and transparently. Users could even earn a share of the advertising revenue generated by their data. This transparency and profit-sharing model could attract users away from traditional platforms, compelling companies like Facebook to rethink their data and revenue strategies.

Moreover, the application of decentralized autonomous organizations (DAOs) introduces a governance model that is more democratic and user-influenced. Users of a DAO-driven platform can propose, vote on, and implement changes to the platform, directly influencing its direction and policies. This level of user involvement and control is unprecedented in the Web2 landscape and could lead to a more user-centric and ethical online platform.

Web3 Is Going Great: Explained

The phrase “Web3 Is Going Great” refers to a website by Molly White, a crypto researcher & critic, software engineer, Wikipedian which is called “Web3 is Going Just Great”. White’s website serves as a critical ledger, chronicling the various scams and fraudulent activities within the crypto and Web3 space. As of November 2023, the site’s ‘Grift Counter’ has tallied a staggering $69.52 billion in financial losses due to these nefarious activities.
Some of the latest examples of frauds covered on the “Web3 Is Going Great” site include:

Monero Community Crowdfunding Wallet Drained: Monero, focused on privacy, encountered a significant setback when its community crowdfunding system (CCS) was compromised and entirely drained, losing about 2675.73 XMR (approximately $460,000), funded by donations.
Safemoon Executives Charged For Fraud: The executives behind Safemoon, a crypto token which had its all time high market cap in April 2021 with $17 billion, were charged with defrauding investors. They promised a secure investment but engaged in practices like removing tokens from the liquidity pool, leading to significant financial losses for investors.
Infringement Lawsuit In The NFT Space: A notable case in the NFT realm involved Ryder Ripps and Jeremy Cahen, who were ordered to pay $1.6 million in a lawsuit over creating identical NFTs to the Bored Ape collection.

Key Web3 Projects And Innovations

Web3 is fostering a multitude of innovative projects across various domains. These platforms stand out, revolutionizing traditional financial systems with decentralized lending, borrowing, and trading. Similarly, decentralized autonomous organizations (DAOs) offer a new model for organizational governance using blockchain technology.

Gaming and NFTs (Non-Fungible Tokens) are also significant sectors. Play-to-earn gaming models have emerged, where players can earn cryptocurrency or NFTs through gameplay. These games often incorporate blockchain to ensure true ownership of in-game assets.

Moreover, Web3 is also seeing growth in decentralized social media platforms, where users have control over their data and can earn from their online interactions. These platforms challenge the centralized model of current social media giants by offering more privacy and reducing dependency on advertising revenue models. Another niche is domain services.

Spotlight On Prominent Projects

In the vast and varied landscape, certain projects stand out for their innovative contributions and foundational roles in shaping the future of decentralized technology. These projects, which range from infrastructural frameworks to user-centric applications, are not only pioneers in the space but also serve as the building blocks for a new era of the internet. Let’s explore some of the most influential Web3 projects that are leading the charge in this digital revolution.

Ethereum

Ethereum stands as the foundational backbone for a multitude of projects. As a decentralized platform, it not only supports its native cryptocurrency, Ether (ETH), but also enables the creation and operation of decentralized applications (dApps) and smart contracts. Its flexibility and widespread adoption have made it a primary choice for developers in the space.

Solana

Solana gained recognition for its high throughput and fast transaction speeds, favoring its use as a platform for dApps, particularly in the DeFi and NFT sectors. Its unique consensus mechanism combines proof-of-stake with proof-of-history, offering an efficient and scalable solution.

Chainlink

Chainlink is a decentralized oracle network that provides real-world data to smart contracts on the blockchain. It plays a crucial role in the functioning of many decentralized applications, particularly in DeFi, by securely and reliably connecting these apps with off-chain data and services.

Filecoin

Filecoin is a decentralized storage network that allows users to rent out their spare digital storage space. It’s an innovative solution for decentralized data storage, competing with traditional cloud storage providers by offering a more secure and transparent storage ecosystem.

Brave Browser

Brave Browser integrates Web3 functionalities directly into its interface. As a privacy-focused browser, it blocks trackers and ads by default, while also offering users the opportunity to earn Basic Attention Tokens (BAT) for viewing privacy-respecting ads.

Uniswap

Uniswap is a leading decentralized exchange (DEX) operating on the Ethereum blockchain. It uses an automated liquidity protocol, eliminating the need for traditional order books and allowing users to swap ERC-20 tokens directly from their wallets.

Decentraland

Decentraland is a virtual reality platform powered by the Ethereum blockchain. It enables users to create, experience, and monetize content and applications within a virtual world. Decentraland provides a digital landscape where users can purchase and develop virtual plots of land, referred to as LAND tokens. It’s a unique blend of gaming, real estate, and digital art, allowing for a fully immersive virtual experience.

The Sandbox

The Sandbox is another prominent virtual world that leverages blockchain technology. It’s a community-driven platform where creators can monetize voxel assets and gaming experiences on the Ethereum blockchain. In The Sandbox, users have control over their creations and can buy, sell, or trade assets in the form of NFTs. It’s a platform that combines the creative aspects of game design with the financial opportunities of blockchain technology.

Web3 Domains And Their Impact

Domain names are undergoing a revolutionary transformation. A Web3 domain is essentially a domain name registered on a blockchain network, such as Ethereum. These domain names serve multiple functions in the decentralized web.

What Is A Web3 Domain?

A Web3 domain is more than just an internet address. It’s a versatile tool within the blockchain ecosystem. These domains can be used to send and receive cryptocurrency payments, access decentralized applications (dApps), and interact with smart contracts. Unlike traditional crypto addresses, which are long and complex strings of characters, Web3 domains provide a human-readable alternative. This simplifies transactions and interactions, making them more user-friendly.

Transforming Digital Identity And Enhancing Security

Web3 domains represent a significant leap in how digital identities are managed. They provide users with a consistent, portable identity across different services. This feature is particularly valuable in the world of dApps and decentralized finance (DeFi), where seamless interaction is crucial.

Web3 domains enhance security and control, as they are immune to censorship and external interference. Being blockchain-based, they offer a level of decentralization and resilience that traditional domains cannot match. This aspect is critical in an era where digital autonomy and privacy are paramount.

How Web3 Search Engines Reshape Online Search

Web3 search engines, such as W3C, are redefining the landscape of online search with a focus on privacy, decentralization, and user control. Unlike traditional search engines that centralize data and often use it for targeted advertising, Web3 search engines utilize blockchain technology to ensure user privacy and data sovereignty.

These web3 search engines are still evolving but are driven by the vision of a more unbiased and open internet. They aim to provide users with greater control over their digital identities and data, challenging the current norms of data ownership and usage in the online search domain.

The Role Of Web3 Auth In Security

Web3 auth systems, like Ethereum’s ENS (Ethereum Name Service) or uPort, offer a decentralized approach to user authentication, using blockchain technology for enhanced security. They rely on public-private key cryptography, granting users complete control over their digital identities.

This decentralization mitigates risks associated with centralized data repositories, such as data breaches. Web3 auth is integral to building trust and security in the Web3 ecosystem, emphasizing user sovereignty over personal data and offering a more secure, privacy-focused alternative to traditional authentication methods.

How To Invest In Web3

For those new to the space, investing can seem daunting, but it offers exciting opportunities. The first step is understanding the basics of blockchain technology and the types of assets available, including cryptocurrencies, NFTs (Non-Fungible Tokens), and tokens associated with specific Web3 projects.

Beginners should start by investing small amounts in well-established decentralized applications. It’s also crucial to use reputable exchanges and wallets for transactions and storage, and to stay updated with the latest trends and developments in the space.

A Beginner’s Guide: How To Access Web3

For newcomers to Web3, understanding how to connect and interact with decentralized applications (dApps) is fundamental. The key to this interaction is a crypto wallet, which acts as your digital identity and gateway to the Web3 world.

MetaMask is the most popular browser extension wallet and it is widely used for its ease of use and integration with Ethereum-based applications. Alternatively, privacy-focused browsers like Brave offer built-in wallets, providing an additional layer of security and convenience.

Identifying Promising Web3 Projects

Investing in Web3 goes beyond just buying cryptocurrencies. Identifying promising projects requires research into the project’s vision, team, technological innovation, and community support. Look for projects that solve real problems and have a clear use case.

DeFi platforms, infrastructure projects, and dApps with a growing user base are often good starting points. Diversifying investments across different types of assets and projects can help mitigate risks. You should be aware of the risks involved with any investment. Among other, these include market volatility and regulatory changes. Also, you should only invest what you can afford to lose.

Frequently Asked Questions (FAQ)

What Is The Web3 Meaning?

Web3 meaning refers to the next generation of the internet, characterized by decentralization, blockchain technology, and user sovereignty.

What Is “Web3 Is Going Great”?

“Web3 is going great” typically refers to the positive developments and advancements in the space, despite challenges.

What Is Web3 Technology?

Web3 technology encompasses blockchain, decentralized applications, and systems that empower users over centralized authorities.

Can You Provide A Web3 Definition?

Web3, using blockchain technology, establishes a decentralized web that ensures user control and data privacy.

What Are Some Most-Well Known Web3 Projects?

Notable Web3 projects include Ethereum, Solana, Filecoin, and decentralized finance platforms like Uniswap.

What Are Web3 Domains?

Blockchain-based domain names in Web3 provide user-controlled, decentralized digital identity solutions.

How Does A Web3 Search Engine Work?

A Web3 search engine operates on decentralized networks, focusing on privacy and user-controlled data.

Can You Help Web3 Explained In Simple Terms?

Web3 is the decentralized internet, leveraging blockchain to give users control and ownership of their data.

What Differentiates Web3.0 From Previous Versions?

Web3.0 stands out due to its decentralized nature, blockchain integration, and emphasis on user empowerment.

How Does A Web3 Domain Function?

A Web3 domain functions as a user-owned identity on the blockchain, facilitating secure and private online interactions.

What Is Web3 Auth And Its Importance?

Web3 Auth is a decentralized authentication system ensuring enhanced security and user control in decentralized applications.

Whats Web3 And Its Impact On The Digital World?

Web3 represents a shift to a decentralized internet, significantly impacting digital identity, finance, and data ownership.

How Is The Web3 Market Cap Evolving?

The Web3 market cap is evolving with the growth of cryptocurrencies and the increasing valuation of projects.

What Are The Best Web3 Crypto Investments?

The best Web3 crypto investments often include major cryptocurrencies and tokens of promising decentralized projects.

How Is Web3 NFT Changing The Art World?

Web3 NFTs are revolutionizing the art world by enabling digital ownership, provenance, and new forms of artistic expression.

What Is The Role Of Web3 Music In The Industry?

In Web3 music, blockchain-based platforms transform the creation, distribution, and monetization of music.

How Does Web3 Storage Revolutionize Data Management?

Web3 storage, through decentralized networks, offers more secure and user-controlled data management solutions. Filecoin is the most popular network at the moment.

What Opportunities Exist In The Web3 Space?

Opportunities in Web3 include investment in cryptocurrencies, participation in decentralized governance, and the development of dApps.

Are There Unique Web3 Memes?

Yes, there are unique Web3 memes that often reflect the culture, humor, and trends within the community.

What Are The Emerging Trends In Web3 Investments?

Emerging trends in Web3 investments include DeFi, NFTs, metaverse projects, and cross-chain interoperability solutions.

Can You Define Web3 In A Few Words?

Web3, in a few words, is a decentralized, blockchain-powered version of the internet emphasizing user control and data privacy.

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The recent Bitcoin rally has brought a number of things to the forefront and one of those is a bullish Bitcoin fractal that has not returned in two years. Crypto analyst FieryTrading was the one to point this out in a recent analysis of the leading cryptocurrency as something that could serve as evidence that the rally will continue.

Bitcoin Bullish Fractal Makes A Comeback

The crypto analyst pointed to a previously identified channel in the Bitcoin price that could suggest a bullish continuation. This channel often results after a big pump and given that BTC has added around $15,000 to its price in the space of a month, it doesn’t get bigger than this. As a result of this, the channel has returned, suggesting that the BTC price could stick to this historical fractal.

FieryTrading identified that the fractal had appeared back in 2019 when the price jumped from around $4,100 to $5,800. After this, the fractal had completed the move, causing the BTC price to rise above the $6,800 level.

Then again in 2020, the fractal would reappear after the BTC price rose from around $11,000 and ended around $14,200. And just like in 2019, when the fractal was confirmed, it saw a continuation of the bullish rally which pushed the Bitcoin price above $16,000.

Most recently, after Bitcoin’s price rose from $28,000 to $41,000, the fractal has reappeared once more. “The pattern that I’m talking about is a bullish channel after a big pump that results in another big pump,” FieryTrading explains.

Where Does This Put BTC’s Price?

Following the previous performances of the Bitcoin price whenever this fractal has appeared, it suggests that there is still a lot of runway for the current rally. The crypto analyst used this historical performance to map out a likely path for the crypto’s price, putting the top of the fractal at $48,000.

“Seeing how the market historically behaved, I made the assumption that BTC would follow this fractal and break out of the channel in the near future. One week later, and BTC has successfully broken out of the channel, as predicted by this fractal analysis,” FieryTrading stated. “As described in my analysis below, I’m currently looking at 48k as the next target. Seeing how these fractals historically behaved, 48k should be fairly easily reached?”

If this fractal does play out the way the analyst expects, then the BTC price can be expected to add another $6,000 to its value from here before the recovery trend ends. This means that the leading crypto might see another 10% jump from its current price.

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According to @RiggsBTC on X, Bitcoin (BTC) is poised for an “unprecedented” surge that could lift it to above $9 million in the next two years. Taking to X on December 6, @RiggsBTC asserted that the current Bitcoin bull run, which began in late 2022 when prices dumped to as low as $15,000, marks the start of a “supercycle,” a period where BTC will aggressively rally, extending gains. 

Will Bitcoin Hit $9 Million In 2 Years?

The asset manager attributes this potential upsurge to multiple factors. Top of the list is the looming supply shock, considering the expected Bitcoin halving scheduled for early April 2021. @RiggsBTC noted that with less than 21 million BTC in circulation, reducing supply and sustained demand could support Bitcoin, feeding aggressive bulls.

To contextualize the potential magnitude of this expected growth, @RiggsBTC estimates that only if 5% of global wealth, conservatively estimated at over $1 quadrillion, translating to $50 trillion, get exposure to the limited BTC in circulation, there will be more upsides.

From the analyst’s view, there will only be around 5 million BTC, most of which are from “weak hands” selling to “nation-states and institutions.” This shift will be the basis for a leg up that will see Bitcoin reach $9 million “in 24 months.”

Pierre Rochard, the VP of Research at Riot Platforms, echoed @RiggsBTC’s sentiment, highlighting the favorable macroeconomic conditions likely to propel Bitcoin even higher. Rochard notes that the U.S. government spends $6 trillion, encompassing $4 trillion in taxes, $2 trillion in borrowing, and $1 trillion in interest payments on its $33 trillion debt.

While the government spends huge sums of money on interest payments alone, Bitcoin’s market capitalization remains under $1 trillion. According to CoinMarketCap, BTC had a market cap of $860 billion when writing on December 6.

Eyes On The SEC And Bitcoin ETFs

Beyond the Bitcoin halving event and supportive macroeconomic factors, the community is also looking at regulators. In early December 2023, the crypto community expects the United States Securities and Exchange Commission (SEC) to approve the first batch of spot Bitcoin ETFs.

This product will provide institutional investors an avenue to get exposure to Bitcoin in a regulated environment, potentially unleashing a wave of capital. Since October, the expectations of a spot Bitcoin ETF in the United States have propped prices.

Even so, how the market will react once the SEC authorizes this derivative is yet to be seen. In the past, the approval of key crypto derivatives products, for instance, the first Bitcoin Futures product in the United States in December 2018, marked cyclic peaks. Afterward, prices tanked, dropping from $20,000.

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The Bitcoin positive sentiment has been rising rather rapidly in the last few months as the market has staged an incredible recovery. This saw the Bitcoin Fear & Greed Index go from deep fear to deep greed and that greed just continued to grow. Now, the sentiment is on the brink of extreme greed, which can be good in the short term, but could inherently turn bearish for the price.

How The Fear & Greed Index Works

The Bitcoin Fear & Greed Index uses a number scale of 1-100 to identify how investors are feeling toward the crypto market at any given time. This index uses a number of different indicators to come up with a number which ranges from social media posts to market volatility and momentum, among others.

The scale is then divided into five distinct categories depending on how investors are feeling and the number that the index is on. 1-25 is considered to be extreme fear and is a time when crypto investors tend to stay away from the market due to price drops. However, this has often proven to be the best time to buy cryptocurrencies.

Next is the 26-46 range which is known as the fear territory. It is one step ahead of extreme fear but is also a time when investors are not as wary despite the rampant fear. It is also a good time to buy and precede the next stage, which is neutral.

Neutral is the region between 47-52 and signifies a time when investors are unsure of this market. Mainly, investors refrain from making any moves during this time, waiting for the market to swing either up or down before deciding their next move.

One step above this is the greed level starting at 53 and ending at 75. At this time, investors are returning to the market and prices are recovering rapidly. This often ends up in extreme greed between 76 and 100, where major decisions are being made.

Bitcoin Sentiment Rests At 72

The Fear & Greed Index is currently at 72, treacherously close to slipping into the extreme greed territory which could have massive implications for the price. Now, looking back at times when the index’s score has gone this high, it paints a picture of bullishness followed by bearishness.

An example of this is in December 2020 when the index rose into the extreme greed territory. It would continue to rise as investors trooped into the market, eventually topping out at 91. Then what followed was a crash that sent investors spiraling. The same thing happened between October and November 2021 where the score reached extreme greed before crashing.

Given how the Bitcoin price has performed whenever the score was this high, it stands to reason that extreme greed can often act as a top signal. So the index going into the 76-100 region can often signify that it is time to exit the market.

If this trend does repeat, then the Bitcoin price could run further and mount more recovery. However, it is headed toward a market crash that could trap bulls who have not timed their exit correctly.

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John Bollinger, known for his expertise in market analysis, has recently shared his insights on Bitcoin’s current market trajectory, noting that the premier cryptocurrency is exhibiting “signs of strength.” This observation comes when Bitcoin consistently sets new highs amid the ongoing bull run.

The asset has experienced a surge, climbing above $44,000, representing a 4.5% increase over the past 24 hours. It now appears to be aiming for the next resistance level.

Bitcoin Shows Signs Of Strength

John Bollinger, the creator of the renowned Bollinger Bands, a popular technical analysis tool, has applied his methodology to gauge Bitcoin’s market movement. Bollinger Bands are typically used to measure the volatility of a financial instrument.

They consist of a middle band, a simple moving average flanked by two standard deviation lines. These bands adjust with market conditions, widening during volatile periods and contracting during calmer times.

Bollinger’s recent analysis highlights that Bitcoin trades outside its daily and weekly Bollinger Bands. This is particularly noteworthy as it suggests a strong continuation of the current bullish trend without any signs of divergence.

On November 21, a two-bar reversal pattern was noted at the middle Bollinger Band, further reinforcing the strength in Bitcoin’s price action.

The air is getting a bit thin up here, but all we see as of now are signs of strength. We are outside both the daily and weekly BBs with no divergences. The last controlling formation was the 2 bar reversal at the middle BB completed on 21 Nov. $BTCUSDhttps://t.co/B4ZU3vpTvV

— John Bollinger (@bbands) December 5, 2023

Bitcoin’s Price Action: Interpreting The Signs

Bitcoin’s bullish momentum continues unabated, with a near 5% surge in the past 24 hours, pushing past the $44,000 threshold. Interestingly, the cryptocurrency shows no signs of deceleration or immediate pullback.

However, technical analysis on a larger scale suggests that Bitcoin might be approaching a significant retracement zone. On the one-week timeframe, an order block is present between the $48,000 and $50,000 regions.

An order block is essentially a zone where significant buying or selling occurred in the past, leading to a substantial price movement. When the price revisits these blocks, they often act as key levels for potential reversals or trend continuation.

Should Bitcoin climb to this region, a retracement might be on the cards. However, invalidating this order block and continuing its rally might set the stage for a reversal, possibly when it reaches the breaker block around the $60,000 region.

A breaker block is a specific price zone where the market has previously shown a substantial reversal, breaking through a level of resistance or support. These blocks are often seen as potential areas where the price might experience significant movements or change direction. If Bitcoin taps into this breaker block, it could indicate another pivotal moment in its price trajectory.

Featured image from Unsplash, Chart from TradingView

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Here’s what the data of this historical on-chain indicator suggests regarding whether Bitcoin has become overvalued after its latest uptrend.

Bitcoin MVRV Z-Score Hasn’t Climbed Too High Yet

As the Reflexivity Research co-founder pointed out in a post on X, the BTC MVRV Z-Score readings have heated up little compared to the values observed in past bull runs.

The “Market Value to Realized Value (MVRV) ratio” is an indicator that measures the ratio between the Bitcoin market cap and the realized cap. The “realized cap” refers to a capitalization model for the cryptocurrency that assumes the “true” value of any coin in circulation is the price at which it was last transacted on the blockchain.

Since the last transaction price of any coin was likely the price at which it changed hands, one way to interpret the realized cap is that it represents the total capital the holders have invested into the asset.

Since the MVRV ratio compares the market cap (the spot price) against this model, it can tell us whether the investors are holding more value than they put in right now.

If the investors are holding more than what they bought the coin for (that is, they are in net profits), they might be tempted to sell, and thus, BTC might be likely to see a correction. Similarly, the market being in losses can suggest the cryptocurrency’s price is currently undervalued and might be due to a rebound.

Now, here is a chart that shows the trend in the Z-Score of the Bitcoin MVRV ratio over the history of the coin:

The “Z-Score” is a statistical tool used to measure how far a data point is from the mean. In the graph, the analyst has marked two zones for the Bitcoin MVRV Z-Score where BTC has attained an overbought/underbought condition.

It would appear that historical bottoms in the asset’s price have formed when the metric has dipped inside the green zone. The tops haven’t been so simple, though, as they fluctuate a bit.

One common thing between all tops is that they have occurred at decently high values of the indicator. At such values, the investors make very high profits, so tops naturally become significantly probable.

The chart shows that the Bitcoin MVRV Z-Score has been climbing recently as the asset has rallied, but it’s yet to arrive at levels similar to past tops. “There will be corrections along the way, but zooming out Bitcoin is far from overvalued based on historical readings,” notes the analyst.

BTC Price

At the time of writing, Bitcoin is trading at around $43,800, up 15% in the last week.

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Former FTX US President Brett Harrison recently had an interview with Cointelegraph Magazine. As part of the discussion, Harrison gave his thoughts on when a Spot Bitcoin ETF will be approved and the possible price level the foremost crypto token could attain when this happens. 

A Spot Bitcoin ETF Could Be Approved In Q1 of 2024

Harrison is said to have mentioned that there is a very “high probability” that the Securities and Exchange Commission (SEC) will approve a Spot BTC ETF in the first quarter of 2024. His prediction happens to be in line with the fact that the SEC has to make a decision on ARK 21Shares Spot Bitcoin ETF on or before January 10, 2024.

As such, there is indeed a high likelihood that a Spot Bitcoin ETF could be approved in Q1 of 2024 (and as early as January). Bloomberg analysts James Seyffart and Eric Balchunas had also earlier mentioned that there is a 90% chance that approval will come by the January 10 deadline. 

Meanwhile, there is a growing belief that we might have more than one Spot Bitcoin ETF application approved by January 10. Seyyfart had, after the Templeton and Hashdex delay, reasoned that the SEC could be lining up all ETFs for a “full wave of approvals.” 

Bitcoin’s Potential Price When This Happens

Harrison also gave his thoughts on what price level Bitcoin could hit when a Spot Bitcoin ETF is approved. The former FTX US President seemed to have been conservative with his price prediction as he put BTC’s potential price between $50,000 and $55,000. He doesn’t foresee the foremost crypto token hitting six figures towards the end of 2024 or early 2025. 

His prediction about when Bitcoin could hit six figures coincides with Matrixport’s prediction of $125,000. The crypto financial services firm predicts that BTC will hit this price level by the end of 2024. Harrison’s prediction of the BTC price rising to as high as $55,000 on the back of approval seems plausible when looking at Matrixport’s projection of BTC hitting $63,140 by April 2024.

Harrison is undoubtedly bullish about a Spot Bitcoin ETF and the success such an investment vehicle can enjoy. He alluded to the first day of a Bitcoin Futures ETF launching to back up his optimism. The ProShares Bitcoin Strategy (BITO) ETF (the first Bitcoin futures ETF) is reported to have seen more than $1 billion in its first two days after launch. 

BITO became the fastest ETF ever to hit that figure. However, Harrison believes that a Spot Bitcoin ETF could go on to break more records. 

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Helium (HNT), a decentralized network launched in 2019, has experienced significant gains across multiple timeframes, making it one of the top performers in the cryptocurrency market. This price surge comes alongside Solana’s (SOL) remarkable 56% increase over the past 30 days and other protocols built on Solana’s network.

HNT has achieved staggering gains over the past 30 days, surpassing 147%. This remarkable growth has continued with gains of 101% and 45% over the past fourteen and seven days, respectively. 

In the 24-hour time frame alone, HNT reached a high of $5.008 and experienced a remarkable surge of 53%, a level not seen since October 2022. But what are the main catalysts behind this spike?

Helium’s Mobile Service Launch Ignites HNT Investor Frenzy

The recent surge in HNT’s price can be attributed to the announcement made by the Helium network on December 5. The network revealed that users across the United States can now enjoy unlimited data, voice, and text services for a monthly fee of $20 through their newly launched mobile service.

According to recent reports, Helium Mobile, a subsidiary of Nova Labs, introduced this no-contract nationwide mobile service, aiming to provide consumers with an affordable and unrestricted mobile experience. 

This move comes when major carriers have been imposing data limits, increasing contract obligations, and raising prices, making Helium’s offering particularly appealing to users seeking more flexible and cost-effective options.

By offering unlimited data, voice, and text services for a flat fee of $20 per month, Helium Mobile aims to address the growing demand for affordable and unrestricted mobile connectivity. 

According to the announcement, the company aims to empower customers by putting control back into their hands, challenging the practices of traditional carriers.

CEO Amir Haleem Calls For Transparency In Mobile Industry

Amir Haleem, CEO of Nova Labs, emphasized the company’s belief that cell phones are essential and that unlimited data, text, and calls should be standard offerings. 

Haleem criticized carriers for concealing high subscription rates, roaming fees, and additional data charges behind seemingly attractive phone upgrade options that often lock customers into costly plans for extended periods.

In addition to its mobile service, Helium Mobile supports a people-powered coverage model, allowing customers to become network owners and operators. Like platforms like Airbnb or Uber, the company believes that “reducing monopolies” and empowering customers can improve service quality, lower costs, and overall benefits for all stakeholders.

As the demand for reliable and affordable mobile services grows, Helium’s approach has positioned it as a key player in the industry. This announcement has propelled HNT’s price upward as investors recognize the potential of Helium’s approach in the mobile service sector.

The trading price of HNT stands at $4.153, marking a significant breakout from its downtrend structure of the past 11 months. The cryptocurrency is now targeting its next resistance level at $4.70. 

However, should HNT fail to surpass this resistance, it will be crucial for the coin to maintain support at the $3.00 level to sustain its current bullish momentum.

Featured image from Shutterstock, chart from TradingView.com 

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Data shows that the Tether (USDT) market cap is almost $90 billion. Here’s why this growth could matter for the price of Bitcoin.

Tether Market Cap Has Continued To Observe A Rise Recently

Tether is a cryptocurrency pegged to the US Dollar, meaning its price remains stable around the $1 mark. The asset is the most famous such “stablecoin” in the sector, with its market cap outstripping any other stable’s.

As the market intelligence platform IntoTheBlock pointed out, the largest stablecoin supply has only continued to grow recently. The chart below shows the trend in the market caps of the various stablecoins in the cryptocurrency sector over the past year.

As displayed in the above graph, Tether has observed an overall uptrend during the past year, while USD Coin (USDC), the next largest competitor, has observed outflows as its market cap has fallen.

The chart also puts into perspective how small the other stables are when compared to these two assets, making them perhaps insignificant for the wider market.

What relevance does a large stablecoin like Tether have for Bitcoin and other coins in the sector? The answer to that question lies in what the stablecoins represent.

Generally, investors make use of stables whenever they want to avoid the volatility associated with the other assets in the sector. The holders keeping their capital locked in these fiat-tied tokens usually plan to return towards the volatile side, however, as they would have gone for fiat itself if they wanted to keep away from cryptocurrency altogether.

When such investors finally move back towards coins like Bitcoin, they naturally put buying pressure on their prices. For this reason, the supply of stablecoins could be considered the “potential buying supply” for BTC and others.

There are two ways the USDT market cap grows. The first is an influx of fresh capital directly going to the asset, which is naturally a bullish development as it means the total capital in the sector goes up.

The second is through a swap from another coin like Bitcoin. In this case, the overall capital present in the sector wouldn’t change, as it’s just a reshuffling, but whatever asset is being sold in favor of the stablecoin would naturally see some decline.

The most bullish scenario for the market is, therefore, when both the BTC price and Tether market cap head up, as it implies, a fresh influx of capital is happening towards both the coins.

As analyst James V. Straten explained in a post on X, the correlation between the USDT market cap and BTC has almost hit 100% during this latest rally, as both have shot up.

The USDT market cap continuing to grow in these circumstances is certainly an optimistic sign for the current rally, as it means that all this dry powder that’s accumulating could potentially be deployed into Bitcoin should the surge slow down, helping extend the move further.

BTC Price

Bitcoin had breached the $44,000 mark earlier in the past day, but the asset has since seen some pullback as it’s now back around $43,800.

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A crypto analyst has shared his projections on the future trajectory of the foremost meme coin, Dogecoin (DOGE). He also hinted as to when DOGE would experience this tremendous rally that would make it rise to $0.7.

When DOGE Will Hit $0.7

In a post shared on his X (formerly Twitter) platform, crypto analyst Captain Faibik stated that an “epic pump” is not far for Dogecoin. From the accompanying chart he shared, this projected rally would see the meme coin rise to $0.7. This move, which will see DOGE gain over 900%, is expected to happen in the first half of 2024.  

Source: X

There seems to be a general bullish sentiment around Dogecoin from a technical analysis perspective. Recently, crypto analyst MonoCoinSignal highlighted how DOGE’s price had entered an important zone. He noted that this zone, alongside other indicators, suggests a bullish momentum as the meme coin could be on its way up. 

Another crypto analyst who goes by Jhonnybrah on Tradingview had also hinted that a god candle might be incoming for DOGE’s price. Unlike MoonCoinSignal, Jhonnybrah provided potential price targets that DOGE could hit. The first target for the god candle happens to be just below $0.14, with the second target above the $0.22 mark. 

A Dogecoin Parabolic Move In 2024 Confirmed?

Crypto analyst JD also recently shared his thoughts on DOGE’s price action. The crypto analyst suggested that the charts were properly set up for a significant rally in the meme coin’s price. He stated that the “King of Memcoins” had a “beautiful chart structure” based on the monthly chart he shared. 

JD noted that the MACD (Moving Average Convergence Divergence) was on the verge of having another bullish cross. The last two times this happened are said to be in 2017 and 2021, when DOGE saw a 62x and 370x, respectively, in its price. Based on the chart he shared, 2024 could be when DOGE experiences this bullish cross again. 

There seems to be no doubt about Dogecoin’s incoming pump, especially considering that the meme coin’s price has trended low for a while now. Several macro factors are also aligning toward this upward trend. Recently, Bitcoinist reported that the open interest on Dogecoin has crossed the $500 million threshold. 

Meanwhile, Dogecoin recently achieved a new milestone as it was reported that over 5 million addresses now hold DOGE tokens. The belief in the meme coin seems to be growing, and with that in mind, more liquidity could flow into its ecosystem soon enough. 

At the time of writing, DOGE is trading at around $0.10, up over 17% in the last 24 hours, according to data from CoinMarketCap. 

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