GB Market Commentary 30/11/2021
by Marcus Sotiriou
After an explosive rebound on the weekend to almost $59,000, Bitcoin has retraced back to around $56,500 this morning. Bitcoin appears to be forming a falling wedge pattern which is historically bullish and has a higher probability of breaking to the upside than the downside. If the down trending line of resistance is broken, Bitcoin may be on its way to retest the all-time-high as the technical target is around that region.
The weekend’s rebound was mainly driven by the spot market and not by leverage which is promising for Bitcoin bulls as it suggests the market is in a healthy condition. In addition, on-chain metrics continue to show accumulation as the total Bitcoin supply held by entities with 1-10 Bitcoin just hit a new all-time-high. Historically (as shown by the chart) this has resulted in an upwards trajectory for Bitcoin’s price for the following few months.
Investment management company Invesco have announced they are launching a Bitcoin ETP (exchange traded product) that is 100% backed by holdings in the underlying digital assets. Bitcoin will be held on behalf of the Invesco ETP by Zodia Custody, a UK-based digital asset custodian, which is registered with the FCA as a Crypto Asset Business under UK Anti-Money Laundering Regulations. Whilst there is a 0.99% annual management fee, this product is an improvement on the recently launched futures ETF (backed by paper instead of physical Bitcoin) and could help a new wave on institutional money to enter the market.
After AMC announced they were going to accept payment for major cryptocurrencies earlier this year, they are now teaming up with Sony to release a Spider-man NFT to people who buy tickets in advance of its premiere. This is a great example of a use case of NFTs besides digital art. I think this is a smart move and that this forward-thinking use of NFTs will result in more sales for the company.
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