KEY MARKET INSIGHTS

The Week That Was - Btc / USD

Bitcoin remains downtrending but is it time for a Santa Rally?

Bitcoin has failed over the last week to make any headway higher with a series of lower highs and persistent sell-offs back into support. So far, the 200 MA has acted as sure footing for Bitcoin as it attempts to grind out a bottom. Whilst Bitcoin's price action slopes sideways, the RSI is revealing a bullish divergence where sellers are exhausting themselves and buyers are gaining momentum. This sign on the daily generally points to a rally in the short term. Structurally, what we are seeing is eerily similar to what we witnessed at 30k and then 40k before the market reversed to new highs, and while that may seem like a long way off sentiment appears to be in a state of depression and funding rates are now turning bullish in a nice confluence. To push the claim that Bitcoin is looking to break this downtrend we want to see a recapture of the 21 EMA & $52,600 with a re-test as support.

Sellers will be watching for another failed bounce into resistance above at $50k before pushing Bitcoin down to new lows. However, after a 40% plus drawdown and three weekly candles in a row, historically this points to the risk being on bears, not the bulls. For deeper insights into Dec with crypto buy/sell recommendations sign-up to our paid Monthly Newsletter. Link in the description. Happy Hunting!

THIS WEEKS TOP HIGHLIGHTS

1. FED chair, Jerome Powell, increases speed of taper and keeps rates steady

2. Jay Z & Jack Dorsey give away $24.5 million BTC to help adoption in Africa

3. Hearing on Stablecoins in Senate Banking Committee less positive than Congress

4. Largest Credit Union in Idaho allows customers to buy Bitcoin

5. Ray Dalio "I have Bitcoin to protect my portfolio"

On-Chain Insight

According to Glassnode, Number of Bitcoin Addresses Holding 0.01+ Coins just reached an ATH of 9,399,526 showing adoption is growing.

Previous ATH of 9,399,020 was observed on 15 December 2021

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DID YOU KNOW?

The month of December has often see what is known as a “Santa Rally” in US stocks. Will it flow on to crypto?

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