KEY MARKET INSIGHTS

The Week That Was - Btc / USD

Bitcoin on the brink of falling deeper into the bear trend. What to look for...

Unless something drastic changes on today's daily close, the largest Crypto by Marketcap is flagging at resistance and will breakdown to retest the 2022 lows. The crushing bear trend looks set to continue into Feb as another pattern fails to produce a break of the diagonal trendline going back to $69,000 all-time high. Bulls would have been gaining confidence this week that the bottom was beginning to form after a 20% bounce from the low 30k's and a trend break on the RSI. This remains one of the more curious observations. Bitcoin bulls are showing clear strength, breaking the downtrend and we are now seeing a re-test of the breakout on the RSI. If it holds then price may rebound in concert with this newfound momentum. However, it is hard to see an upthrust with risk seemingly undesirable in this current macro climate - to highlight this, large tech stocks, Paypal and Facebook are down over 25% this morning. This generally signals that we are in for turbulence.

If we are going to get the consensus "Final Capitulation" below the $30,000 level then the market appears to be setting up for it while the contrarian bulls will see a similar price formation emerging when Bitcoin bounced hard from the 2020 lows in the Covid Crash. Happy Hunting!

THIS WEEKS TOP HIGHLIGHTS

1. Critical Solana hack via Wormhole has investors fearing the worst

2. The US state of Arizona introduces bill to make Bitcoin legal tender

3. $1.11 Trillion Fidelity, has been buying BTC since 2014 and sees it as superior money

4. US Government hits $30 Trillion in national debt and plans to issue more in 2022

5. Microstrategy and El Salvador have bought more Bitcoin in this dip

On-Chain Insight

According to Glassnode, the current market is seeing a preference for HODLing, rather than spending. This leads to a downtrend in liveliness, typically seen within the context of bear market accumulation phases. Liveliness is a macro metric which tracks coin dormancy vs coin-day destruction.

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DID YOU KNOW?

One of the greatest Wall Street Investors of all time, Bill Miller, has 50% of his portfolio in Bitcoin

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