BITCOIN - Greed Is In the Air With Bearish Signs of Reversal

3 февр. 2023 г.

I'm watching the market cautiously at the moment. BTC is up almost 50% since its last low in December without even a 6% correction. We have had 5 consecutive higher highs, but the MACD has conversely made all consecutive lower highs. Taking a look a previous times this has happened in 2022, we had precipitous drops. Volume is also decreasing despite making higher highs. I am not sure how much more this run has left, but the risk reward favors the downside to me.

Given the Fed's announcement, there is a lot of excitement in the air. With BTC pumping and holding over 20k for 2 weeks now (on bearish news of increased US regulation on crypto and the Genesis bankruptcy announcement no less), it's seems ripe for a rug pull. 21k is the first support level I would look to see how the bulls respond if we dip. But that is only the .382 Fib retracement level and BTC loves the .618 which would be $19,300. That is quite the correction. This run may hit $25,000, but it may not. Erring on the side of caution and history, I think BTC will likely test 20k-21k before it moves on to 30k, so I'll be waiting for the correction. Trade cautiously.