Trading Bitcoin: Stellar Burns Half Their Supply, BTC Still at $9.3k

BTC Still at $9.3k

Yesterday, Bitcoin briefly increased to $9.5k then was promptly rejected to $9.3k. Currently, Bitcoin is on a green 3 of 9 candle showing more upside potential. Notably, Bitcoin is still trading above the 200MA (orange) on the daily chart above. The 200MA has been a key support/resistance level throughout previous market cycles. Additionally, the Lucid SAR (blue x) is still acting as bullish support below price.

4 Hour

Bitcoin is still trading above the 50MA (grey) on the 4 hour chart above. All three moving averages are acting as support below price. Also, the Lucid SAR (blue x) is acting as bullish support as well. Currently, Bitcoin is on a red 1 on the sequential indicator. Therefore, price is in a neutral consolidation phase as the market decides on its next move.

Stellar Coin Burn

Yesterday, Stellar burned over 55 billion tokens worth $4.7 billion. According to a medium post,

Just before this announcement, we burned 5 billion lumens from our operating fund. It now stands at 12 billion lumens. This reduction isn’t in any way a retreat from our mission. It’s an acknowledgement that we owe it to the ecosystem, to the network, and to ourselves, to be as efficient as possible in our work. We’ve plotted the next ten years of Stellar’s growth and even with our greatly increased ambitions for SDF, we’re confident these funds will be enough to see us, and the network, through

As a result of the news, Stellar increased as much as 28% on the day. However, Stellar has now decreased and is only up 17%. While this may seem like a significant increase, considering Stellar burned half of its total circulating supply, price should have increased at least 100%. Prominent Twitter influencer John Carvalho responded in a tweet:

Conclusion

Bitcoin continues to hover at $9.3k as the market decides on its next move. We are still trading above the 200MA (orange) on the daily chart. If this level is purged, look for a bearish retest of $8.7k. If Bitcoin can break above resistance at $9.5k, look for a bullish retest of $10k. As of now, the trend remains neutral-bullish.

Disclaimer: The author of the article hodls Bitcoin.