Welcome to the new decade - An update on the Market

What does the start of 2020 signal for Bitcoin?

Bitcoin price saw a healthy jump-start in 2020, rising out of the mid-7000 prices that spanned the whole month of December.

December in Review (-5%)

Open: $7555 / Close: $7165
High: $7775 / Low: $6430

The January uninterrupted surge from $6900 to $8500 coincided with the news of geopolitical conflict between the US and Iran. This event is another point of evidence that perception of Bitcoin as a wartime safe haven (like gold) is growing. On the chart interpretation, we’re seeing the declining consolidation trend continue, with support around $6900 and resistance continuing to fall. If we can hold above $7700 throughout January, there may be enough bullish pressure for the consolidation to resolve to the upside.

In terms of entry price points for long term investors, December - January still represents an opportunity to purchase inexpensive Bitcoin with a Mayer Multiple between 0.7 to 0.85 currently. We are still in the accumulation phase. The Mayer Multiple is the multiple of the current Bitcoin price over the 200-day moving average. It can be used to interpret whether the current price is expensive relative to its recent history (the past 200 days). Historically, buying Bitcoin at a Mayer Multiple of 2.4 is dangerous. Past cycle analysis also reveals that the Mayer Multiple tends to bottom at a higher point with each subsequent long term market cycle (Approximately 0.25 in 2011, 0.4 in 2015, 0.5 in 2018).

If you want to learn more about this please contact your broker.

Notable movers in the Altcoin Market

Within this last week, we have seen great returns on BTC with promising signs for 2020. In typical Cryptocurrency fashion, the Alt Coin Market has followed the direction of BTC. As Alt Coins have significantly less trading volume than BTC, it is no surprise that an upturn in the market or change in trader sentiment will cause these coins to move in price far quicker than BTC. It is also critical to note that BTC is the most common trading pair within the Cryptocurrency space. So any movements in price will certainly have an impact on the Alt Coin Market one way or another.

Chainlink (LINK) has seen positive returns this last week over 25%, giving the project a great start to 2020 after returning over 1500% from its year low to year high in 2019. Other notable performers within the last week are Litecoin (LTC), Bitcoin Cash (BCH), Eos (EOS) and Neo (NEO). With Coins in the top 20 seeing such great starts to 2020 it goes to show that the larger projects with higher trade volume and market capitalization are still capable of drastic price movements and volatility.

A video explanation of how Caleb and Brown works

Early January the Youtuber, Chico Crypto, explained our services in a video of his. At the 11:19 mark, you can see a thorough and easily understandable explanation of how we work.

Our next Newsletter will talk about Decentralized Finance (DEFI) which will likely be one of the hottest topics of 2020 in the Cryptocurrency space. As we move into the new year, we are eager to hear your thoughts about topics we should explore, so please do not hesitate to reach out to us.

Jake Boyle