KEY MARKET INSIGHTS

The Week That Was - Btc / USD

Bitcoin breaks downtrend in time for Christmas!

As we forecasted last week, Bitcoin was consolidating into a falling wedge at the lows and would likely resolve itself to the upside if conditions remained the same. The 18-day grind over the 200 MA gave bulls the platform to break to the upside as sellers gradually weakened into support as low as $45,000. We also saw a strong bullish divergence against price on the Relative Strength Index (RSI) that generally telegraphs reversals.

This is a great start for bulls hoping for a solid end of year and then a strong January recovery. In the short term, the 21 EMA has provided the first roadblock in Bitcoin's move out from the wedge and volume hasn't been overly strong which can mean this move does not have follow through. Expect a retest of $48,000 in line with the wedge. Absolutely key for bullish continuation and recovery is for bulls to reclaim the $52,000 level and to flip it as support. This is in line with the 0.618 retracement and also the previous local high back at the start of December.

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THIS WEEKS TOP HIGHLIGHTS

1. El Salvador buys another 21 Bitcoin to celebrate December 21

2. Binance aims to set up global HQ in Crypto Friendly Dubai

3. Donald Trump Says Crypto is "Dangerous" as his wife releases NFT

4. 14,400 households are now mining Bitcoin in Irkutsk, Russia's new mining capital

5. $2.7 Billion New Jersey community bank allows clients to buy, sell and hold Bitcoin

On-Chain Insight

According to Glassnode, Bitcoin supply is moving from a Liquid, to Illiquid state at a rate of 100k BTC per month.

Illiquid coins are those sent to an address with little history of spending, generally associated with investor accumulation and bull market buyers.

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DID YOU KNOW?

The CEO of Microstrategy, Michael Saylor, personally owns 17000 Bitcoin

This is a current holding worth $850m USD

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