We have seen this over and over again this year, and going on past performance, we know who ends up the winner as in the end: Demand continues to outstrip the available supply. As the news hit the wires that the SEC will be pursuing a case against Ripple for selling unregistered securities, XRP tanked, dragging Bitcoin with it - but not for long, and that is very telling.
The longer Bitcoin consolidates at these levels, the greater the chance of the next leg up.
We are still seeing great demand from 'retail,' with wallets holding over 1 BTC continuing to show strength. On the flip side, those considered 'whales' are still selling into the rally.
Yesterday I commented on the news that Grayscale halted new investments into their Trusts. With this news, we can deduce an existing client, or clients, added another $285M of Bitcoin to the fund today. As we have discussed, this doesn't necessarily mean there has been a fresh purchase of BTC - it could be a subscription of already owned Bitcoin.
As we head into Christmas eve, traditional markets will be winding down and taking a break, with the majority of markets closed for four days. I wonder how many bored stock traders, confined to their living rooms, with journeys to the fridge for more turkey as the only source of entertainment, decided to come play with crypto.
Bitcoin will rule the trading world for four days, and with a huge option expiry drawing ever closer, it would probably be a good time to trade with caution!
Bitcoin has stepped higher again today, and support has been defended at each turn, with the bulls showing their hand as the market dipped below $23,000. A quick injection of purchases drove the market back above $24,000 as short-term momentum traders 'enjoyed' quick liquidation and loses.
A re-test of $23,245 is likely, and should the market hold this level, we will see a return to $23,780 and above, as the bears become frustrated. $24,300 waits just overhead as the bulls will no doubt seize the moment and push for a new all-time high.
On the downside, a break below $23,245 will be closely watched. If the bulls fail to protect this level, then we will see a drop back to today's lows as the likely outcome. $22,260 sits just below, with $21,730 rounding off the downside targets for today.
Yesterday's trading was mixed. Early in the session, even with reports of economic slowdown in the US, traders were still buying, maybe thinking it solidified the accommodative Fed policies.
Yesterday’s narrative was somewhat bittersweet. On the one hand, Fed policies remain hyper accommodating, which is positive. On the other hand, the accommodating stance is based on lingering concerns about the economic recovery in the US (and also globally).
Bitcoin has fallen back below $40,000 today, as the denial from Amazon of the impending acceptance of Bitcoin as a payment method came through. Prices returned to our support level of $36,500 before rallying once more, a sign that this move may be supported by more than just click-bait headlines.