DAILY BTC ANALYSIS

Bitcoin broke up through $20,000 on December 16th. Since then, all pullbacks have been met with strong buying demand. However, will we see the same demand for a 'dip' to $25,000? It's been a very controlled rally: Prices have moved higher, moved sideways, then repeated from a new solid base. This week, even the most optimistic bull will be happy with a period of consolidation that doesn't involve a sharp drop as the inevitable 'profit taking' crowd decide to cash in before the year ends.

So far, we have not seen increased levels of liquidation from miners.

We are starting to observe an increased amount of selling from F2Pool, one of the largest miners, who can account for just under 20% of all blocks mined. It's definitely a good time to be focused on miner flows, as this increase from F2Pool could encourage others to liquidate some of the 1.7M Bitcoin miners wallets hold.

The decrease in the number of wallets containing 1,000 or more BTC has continued over the Christmas trading period.

For a broader view, taking a look at smaller wallets holding 0.1 BTC, 1 BTC, 10 BTC and 100 BTC, shows the whales are not the only ones selling. Prices are clearly not reflecting, nor showing any signs of this selling becoming selling pressure, but I would suggest caution until the market has had a few days to settle at these levels.

Technical Analysis

It was a Christmas day cracker, as Bitcoin blasted through all-time highs on December 25th, 26th and the 27th, leaving us with a new marker, $28,387. Yesterday we retraced down to the outside edge of the up-slope, as shown on the chart above. This line is likely to be critical as the market looks to settle and form yet another, higher, trading range.

We have started to form a range between $26,520 and $27,295. Look for prices to break lower towards $25,575 and $24,655, should $26,520 fail to hold prices.

On the upside, a break back above $27,295 will see Bitcoin push to its high and start to think about a $30,000 handle.