Bitcoin is Showing Signs of Accumulation Whilst Major Italian Bank Plans to Allow Bitcoin Trading

GB Market Commentary 05/01/2022

by Marcus Sotiriou


Whilst Bitcoin continues to consolidate around $46,400, comparisons can be made to the previous consolidation period in May-July 2021. Renowned technical analyst Rekt Capital points out, from his chart below, that in May-July 2021 Bitcoin remained between the 21-week exponential moving average (green line) and the 50-week exponential moving average (blue line) for over 10 weeks. Bitcoin is currently between the same moving averages, yet only 5 weeks have been spent in this region. This suggests that, if history is to repeat, there may be some more weeks of pain for bulls, but that this is a period of accumulation leading to new all-time-highs in the coming months. I would agree with this analysis as adoption continues to surge across the crypto industry.


Bitcoin / U.S Dollar 05/01/2022

A recent example of mainstream adoption for Bitcoin is Italian bank Banca Generali allowing customers to buy Bitcoin through one’s debit or credit accounts early this year. This bank is geared towards private banking and wealth management with $87 billion in assets and 300,000 customers.


There have been several major bank plans announced in 2021 to incorporate Bitcoin - in particular German Savings Bank Association (aka Sparkasse), a network of 400 banks across the country, giving easy access to crypto services to over 50 million people. I think this theme is likely to continue in 2021 as regulation, the biggest concern for financial institutions, hopefully becomes more clear-cut.