What does the start of 2020 signal for Bitcoin?

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Welcome to the new decade!

We hope you are all well and excited for what 2020 will bring.

A number of you have reached out with regards to Australia's unfortunate bushfires. We are all safe in the city of Melbourne and appreciate your concern.

What does the  start of 2020 signal for Bitcoin?

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


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 for a few weeks 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-Jan 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.
  

               

BTC / USD - April 2019  to January 2020

Notable movers in the Alt Coin 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 BTC 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 capitalisation  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 11:50 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.
Also, don’t forget to email sam@calebandbrown.com your prediction for BTC’s  price at the end of January.