BTC UPDATE

17 янв. 2022 г.

#BTC Update

What's new since the last BTC update?

Trading volume over the weekend was below average and we have been trading in a range that has a high of $43800 and a low of $42300.

BTC's daily outlook remains positive with no clear signs of reversal. The sector chart shows nothing exceptional and as said before, without institutional volume we could possibly stay in an slightly ascending channel for a while.

Early(Europe) day analysis on Mondays can't really take into account what is happening on the stock market as the main trading floors in the US that influence BTC have not yet opened therefore we might see the price picking a direction starting at 2:30PM UTC-5 (usually 10 mins after the opening we get good volume). Keep in mind that almost all of the time, the direction of the opening orders dictate the direction for the whole trading day.


Our expectation:

Case 1 -
Price will break the current sector, go to the 45900 level then retrace, leaving us the space to long and short , however the risk reward ratio isnt insane so we advise using low risk if you decide to go for such a trade.

Case 2

Low institutional volume might lead the retails to try to buy on their own with low volume that would probably get stuck in the descending trendline marked with white.


Can there be a local bearish scenario?

Absolutely! BTC price has been messing with traders lately, plotting smaller higher highs and then dropping massively in 2 -3 4h candles, and we can see this trend getting stronger lately.

We are now sitting at the 0.236 fib level support, a bit lower we have a trendline that has kept us in the long run but that allows for some bleeding to go through. We do have some higher lows but as stated before that doesn't mean that we're going to the moon. We can become bearish if we flip the 40k level to resistance, that would mean a lot of things for the whole market in general but the discution is too broad for now.