Bitcoin Bounces 10% off the Lows as Local Bottom May be in

GB Market Commentary 13/01/2022

by Marcus Sotiriou

Bitcoin saw more relief yesterday as it reached $44,000, more than 10% from the lows at $39,650, as it printed a higher high on the low time frames. This is a clear change in market structure which suggests the short-term trend has now flipped to the upside. It appears likely that the local bottom is in as there was a ‘sell the rumour, buy the new event’ with the US inflation data yesterday, which came in as expected on the year over year (7%) but higher than expected on the month over month (0.5%). It seems that many have been hedging and decreasing exposure to crypto in recent weeks in anticipation of this data releasing, who are now having to buy back. Key levels of resistance for Bitcoin are $46,000 and $53,000, but I would not be surprised if it went higher before another correction, as the $40k support which Bitcoin bounced off is such a key macro level.

Another German bank plans to offer cryptocurrency trading services

N26, a German bank, has announced that they will be facilitating cryptocurrency trading services this year. The co-founder and CEO said that focusing on cryptocurrency instead of going global may have been a smarter move. The bank was valued at around $9 billion last year and has over 7 million customers as of January 2021. This comes after Sparkasse (German Savings Banks Association)’s announcing a crypto wallet service a couple of months ago, with Commerzbank & Volks Bank planning similar services. It is becoming clearer by the day that mass adoption for cryptocurrency is inevitable within this decade, as banks worldwide are rushing to provide services to their customers.