KEY MARKET INSIGHTS

The Week That Was - Btc / USD

Signs that Bitcoin has bottomed in the near term are promising but must be tempered...

The next 7-days will prove decisive for the often asked question "Has Bitcoin bottomed?" The strong reaction at $40,000 and $39,500 was encouraging were waves of volume arrived to defend this crucial level as sellers smashed themselves against the rocks of heavy support. Now, we need to see follow-through. A stick of dynamite that had the potential to plunge Bitcoin into the $30,000's was the anticipated US CPI inflation figures that dropped today. With no nasty surprises, Bitcoin is now clear to run and test it's first major hurdle - $46,000. This area is crucial for bulls to conquer as it was where Bitcoin traded for much of December and many will want to sell into this.

To stop this bounce being short-lived bulls must up the momentum and put bears to the sword. As the derivatives market is now shifting to short this bounce, the conditions are there for Bitcoin to explode upwards in what is know as a short squeeze. While bears might be feeling uneasy, pressure is on the bulls to prove they are serious or we will revisit the lows.

To break the overall downtrend we ideally want to see a reclamation of the 200 Daily MA and a strong move above $48,000. For deeper insights into Jan & Feb with crypto buy/sell recommendations, sign-up to our paid Monthly Newsletter. Link in the description. Happy Hunting!

THIS WEEKS TOP HIGHLIGHTS

1. US politicians propose bill to ban the use of a Central Bank Digital Currency

2. US FED chair Jerome Powell says stablecoins can coexist with a digital dollar

3. Senator Cynthia Lummis to take 1/3 of salary in Bitcoin

4. Fidelity says to expect more sovereign nations and central banks to adopt Bitcoin

5. Bitcoin lightning company Strike enables network in Argentina after El Salvador

On-Chain Insight

According to Bitcoin Magazine's Dylan LeClair

Bitcoin Funding rates are moving into negative territory, putting derivatives traders short a reversing market. In the past, this has signaled an explosive shift in the trend and a short squeeze.

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DID YOU KNOW?

A well known Fund Manager with $290 Billion on their books is expecting 30% of Americans to own Bitcoin by the end of 2022.

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