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Tuesday, October 4, 2022

BITCOIN Blastoff

Everyone is looking for confirmation that the markets are turning bullish once again!!  Bitcoin has pushed right back up to the BIG resistance of $40k & this week has been a week of testing it over and over! When is it going to be broken? Well, that could have already happened.  If so the next question is when $50k when $60k. Well, you know our opinion those number hits are inevitable.

Just like you watching this episode. Because it’s time for Chico Crypto!! So, let’s just take a look at why braking $40k is so important and why it’s been rough getting through it! January 9th we first tested it but then rejected it. Then January 14th rejection.  It was almost a month later, February 8th that Bitcoin officially broke 40k for the 1st time.  

But then in May, we fell below once again & since May we have tested it over and over…with our most recent tests coming over the past few days! I really hope the break has already come, but as I mentioned a couple of days ago,  I see the official break coming in early August.

August 1st if I had to put a date on it! But after 40k we have the next levels, $50k and then the grand poobah 60k!!  So the question is if we do break 40k between yesterday and early August. When are we going to smash through $50k and then $60k! Will it be like before? Back in February,  it only took 7 days from breaking 40k on February 8th to smashing through $50k on February 15th!  

And then our first cross of 60k happened on March 13th, only 24 days from the break of $50k! It only took 1 month, 31 days, to gain 20 thousand dollars! If that happens again and say we officially break on August 1st that would mean we would be back to  $60k testing that high resistance by September 1st!!

So is this going to happen? Back to $60k by September 1st!?  Well, other’s in the space, based on Technicals are saying that yeah it just might! A Year of the Bull, 1.618 on Twitter posted their chart and said  “Today let’s add one of my favourite #Bitcoin cycle indicators,  based on the 2Y MA and a 5x multiple of 2Y MA.

It helps us identify seasons of “Despair”  as well as “Greed” in the #BTC cycle. BTC is getting ready for mania! And then also  #Bitcoin bear trap at the Golden Ratio 1.618 before the MANIA PHASE, just like the last cycle…. Now looking at their chart, yes BTC in the past cycle 2017, and that BEAR Trap,  bounced off this ratio number 1.618 before it entered into the mania phase of that cycle!  

Well here recently too with this BEAR fall, we are bouncing off that golden ratio! And from their chart, it looks like we are breaking the 60k high in May, by September of this year!! If you guys didn’t know, my birthday is in September. That would be a happy happy birthday to me if we do break to $60k that month! Also if you wanna give Year of the Bulla follow to check out more of their TA link for their profile is down in the description!

But technicals are just 1 part of the equation!  Everyone knows Chico Crypto is a fundamentalist through and through!  Fundamentally, what could be happening that could spark a RUN… Well the FED, in the United States, met 2 days ago on the 28th to discuss the possibility of raising interest rates! Raising wouldn’t be good for asset prices overall, as the policy makes money cheap to borrow and spend.

Which of course flows first in the stock market,  but some that cheaply borrowed money is spent in the crypto markets too!  So let’s listen to their decision, from FED chairman Jerome Powell! They ain’t touching rates! Because if they do shiznit would hit the FAN.

Fundamentally,  in the short to mid-term, this is bullish for stonks and this is bullish for crypto!!  Although it’s not good in the long term, that’s a whole nother story! So in the macroeconomic environment, things look really good for a bullish run for the rest of the year!

But fundamentally within bitcoin and crypto, what could also help push things to the next levels? Well, major protocol upgrades of course!! Everyone knows about the London upgrade for Ethereum coming August 4th, which will include EIP 1559!

Which is the biggest change to Ethereum ever! I’ve covered it multiple times, so  I won’t beat a dead horse but when this upgrade commences, part of Ethereum transaction fees will be burned and destroyed forever!

This upgrade is highly anticipated and many think it’s critical to Ethereum to be able to handle another surge of users when things get hot and bullish once again! Ethereum has a major protocol upgrade right around the corner but what about BITCOIN!?

Well BTC  locked its the biggest upgrade in a very long time, just last month! This is Taproot and on June 12th, it reached the 90 percent miner signalling for yes, to officially lock it in! So what is this Taproot for Bitcoin!? Taproot is a soft fork to the network that will improve the scripting capabilities and privacy.

It enables something called MAST. What does Mast do? Well,

#1 Increased privacy: This does not refer to Bitcoin addresses or enhanced anonymity; it refers to types of transactions. Taproot and MAST will make complex transactions,  such as those requiring multiple signatures or those with delayed release, indistinguishable from simple transactions in terms of on-chain footprint.

#2 Lower fees: The data size of complex Bitcoin transactions will be reduced,  which will lead to lower transaction costs.

#3 More flexibility: Mast allows a new type of signature that will enhance smart contract functionality in Bitcoin, making it easier and cheaper for users to set more complicated conditions for a transaction. And

#4 A Lightning Network boost. It’s gonna make transactions on Lightning cheaper, more flexible and more private. Lightning channel transactions are going to look like regular bitcoin transactions, So if this is activated and locked in why are you talking about it now?

Well, Taproot is actually not live! The over 90 percent Miner signalling just OK’d activation.  The deployment of Taproot is actually coming later in the year! And nicehash.com has a nice countdown to it as we can see it’s projected to happen in November, the 16th to be exact!!! The importance of Taproot isn’t really fully understood yet! But to help you understand this is the first time Bitcoin has gotten an upgrade in 4 years.

The last one was Segwit,  Segregated Witnesses, which happened in August of 2017 setting bitcoin up back then for its mania phase! Is Taproot the upgrade of this cycle, which will push Bitcoin into the mania phase?? Although there could be another BTC upgrade making its way into the protocol as it is already semi-live with some BTC miners and pools.

That is the mining protocol upgrade Stratum  v2!! Stratum V2 provides a bunch of different technical upgrades, from switching to JSON  for communication to binary to make communication more seamless to reducing redundant communications between pools and individual miners, to cryptographic authentication that allows you to prevent man-in-the-middle attacks such as your ISP stealing your hash power.

Stratum  v2 is just more efficient than what most miners used today which is none other than Stratum v1. Now the mining company Braiins, who is behind the largest non-Chinese mining pool, Slush Pool are the creators of Stratum v1 and also v2. And Slushpool, and their OS for miners, is the first to deploy stratum v2. They tweeted about the efficiency of this.

They said “Increase your Capital Efficiency by up to 25% with Braiins OS+. They included the stats. Revenues are much higher and ROI time is much quicker! So the miners are going to want to adopt v2! But v2 is only in what I would call a limited BETA, it has the technical upgrades I mentioned above but the big one, Job Negotiation isn’t ready!

Job Negotiation allows individual miners within a mining pool to choose their own blocks to mine rather than having to mine the one a pool proposes for them! This in theory will decentralize bitcoin to where it needs to be breaking up the power of the mining pools! When Job Negotiation? Well, on March 3rd of this year the Braiins Twitter tweeted “So, what is the state of Stratum V2 adoption today? Well, it’s still very early days.

We have an implementation on  Slush Pool and in our BraiinsOS+ firmware, so there are already many miners using V2.  However, this doesn’t include Job Negotiation yet. They continue “The reason is that there are changes necessary in Bitcoin Core in order to make Job Negotiation possible.  

So there can’t be a full implementation of Stratum V2 until those changes are made.  Good news: the development is in progress & square crypto is leading it forward! Ain’t that some shiznit! Jack Dorsey’s square crypto is pushing forward Stratum v2’s job negotiation!! An update on that coming soon!? Well, it has been 5 months since we last heard a  word Cheers I’ll see you next time!

Read More: Untold Truths About Ethereum

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