In 2021, Bitcoin hit a high of $67,000 and closed the year at $47,200, returning 60%, beating all major stock indices and commodities (see 2022 outlook).

2022 has begun with a bout of volatility. Bitcoin tested a key support level of $39K, but following a 7% CPI print, the largest increase since June 1982, Bitcoin broke out of its downtrend to test $44K (see chart below).

According to data from glassnode, long-term investors are accumulating Bitcoin. This is generally a bullish signal.

Following the sharp selloff in December, Bitcoin’s fear and greed index dropped to nearly 15/100 for the first time since July, signaling extreme fear. This is typically a good time to accumulate Bitcoin.