12/14/2021
The month of November was very poor for bitcoin and the other altcoins as bitcoin's market cap fell by over 30%. Now that we are in the middle of December, indicators suggest that it could be time for yet another crypto rally cycle.
Our outlook
It appears that every month switches sentiment in this market as August was bullish, September was bearish, then back to bullishness in October, and further downside in November. So far in December, price hasn't really moved much in either direction, but there could be a few catalysts that take price back up to the highs again. CPI increased 6.8% which caused a big concern to the stock market and the USD as inflation fears begin to rise again. Further, bitcoin has hit a major support level that could help turn things around for the market. And to mention, 90% of BTC's supply has now been mined, meaning the store of value is nearing peak demand.
Trade Setups
BTCUSD
Taking a look on the 1D chart, price has come all the way down (>30% from the highs in November) and is now touching its 200 DMA. There are several other candles that have tested this level but could never close underneath. This is a good sign for the crypto as the coin has the potential to bounce back from these lows.
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