Blockchain Index

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Blockchain Index - Bitcoin Update: 16th May 2023

Bitcoin increased by roughly 100% from its market low of 15,500 USD, reaching highs of almost 31,000 USD.

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What we know so far:

• The previous Bitcoin bear market bottoms occurred on average 400 days before the next BTC halving event. 
• The next Bitcoin halving event is estimated to be in April/May 2024
• This would suggest Bitcoin should have bottomed in Jan 2023 - which is in line with this current Bitcoin market low. 
• A Bitcoin halving event is where the supply of Bitcoin entering the market is reduced by 50%. This has historically been known as a bullish event, however, the bull market actually begins prior to the halving cycles. 
• A reduction in the supply of Bitcoin and growing demand for the asset are only supporting higher prices long term.  
• Bitcoin remains inside the longer-term bullish trending channel structure (highlighted in the second chart)

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With Bitcoin leading the charge to the upside and tagging the first crucial resistance level, short-term profit taking, and leveraged short positions are most likely taking place. Pullbacks are expected and support can be found at 25,000 USD and 20,000 USD. 

However, fundamentally, Bitcoin is showing good signs of a major change in trend after breaking out of the negative trend line resistance and tagging the lower channel structure, which is only positive for the rest of the crypto market.

Is there such a thing as the S&P 500 but for crypto? We are here to tell you that yes, yes, there is.

A crypto ETF (exchange-traded-funds) may be a great alternative to buying cryptocurrencies directly when you don’t want to manage your investments actively but still want to diversify your crypto portfolio. Watching over 500 different cryptocurrencies remains nothing short of a nightmare. 

The next best thing to a blockchain ETF is the Blockchain Index Strategy on ICONOMI, one of the first crypto indexes. Blockchain Index is a Strategy that follows similar concepts to an ETF – it tries to mimic the market. It, therefore, includes an array of “best” cryptocurrencies, providing plenty of diversification in a single Strategy.