BTC to move lower and test $30,000 before resuming its bull run!
The relief rally in the crypto market throughout the last 2 trading sessions has definitely brought back a certain degree of positivity among the bulls. However, the price is currently heading towards an area where we have both the downward sloping diagonal resistance (blue line) of the current downward channel as well as the horizontal former support, now resistance (black line) around the $39,000 - $40,000 area that was broken to the downside on January, 21st this year.
It is important to also point out that while the initial price breakdown to the downside happened on an above average volume, the current retracement to the upside is happening on a very light volume. This shows the absence of heavy institutional buying at these levels. Furthermore, we have seen another strong pick up in the Open Interest for BTC, moving from $10.7 billion to above $12.5 billion throughout the last 2 sessions. This again confirms that the current rally has been mainly driven by retail trading accounts using derivative instruments and trading on margin. We expect to see another volatile leg of the current BTC downtrend, which we expect to be the last one before the large institutional buyers start pushing the price higher. We expect to see another large wave of forced liquidations during the upcoming decline, which will once again create that cascading effect that we have previously talked about and will further accelerate the decline. The Open Interest needs to come down below $10 billion, an area where historically the price has managed to bottom and institutional investors have engaged in heavy buying activities.
We are strongly bullish on BTC in 2022 and we expect to se BTC reaching levels north of $100,000 per coin in the 1st half of the year. However, we are cautious in the short-term guided by the on-chain market data and the heavy retail speculation that has led the recent rebound in the price.
We will further deploy our capital to work and add more to our long-term BTC position, once we see that sharp leg lower that we anticipate. Our team sees the $28,000 - $32,000 as the optimal buying zone for the current cycle and we have strong conviction that if you are patient enough you will get a chance to buy into the market around these levels.
Follow & Copy us for more detailed market analyses, profitable trading ideas and a consistent portfolio performance.
Sincerely,
DowExperts
It is important to also point out that while the initial price breakdown to the downside happened on an above average volume, the current retracement to the upside is happening on a very light volume. This shows the absence of heavy institutional buying at these levels. Furthermore, we have seen another strong pick up in the Open Interest for BTC, moving from $10.7 billion to above $12.5 billion throughout the last 2 sessions. This again confirms that the current rally has been mainly driven by retail trading accounts using derivative instruments and trading on margin. We expect to see another volatile leg of the current BTC downtrend, which we expect to be the last one before the large institutional buyers start pushing the price higher. We expect to see another large wave of forced liquidations during the upcoming decline, which will once again create that cascading effect that we have previously talked about and will further accelerate the decline. The Open Interest needs to come down below $10 billion, an area where historically the price has managed to bottom and institutional investors have engaged in heavy buying activities.
We are strongly bullish on BTC in 2022 and we expect to se BTC reaching levels north of $100,000 per coin in the 1st half of the year. However, we are cautious in the short-term guided by the on-chain market data and the heavy retail speculation that has led the recent rebound in the price.
We will further deploy our capital to work and add more to our long-term BTC position, once we see that sharp leg lower that we anticipate. Our team sees the $28,000 - $32,000 as the optimal buying zone for the current cycle and we have strong conviction that if you are patient enough you will get a chance to buy into the market around these levels.
Follow & Copy us for more detailed market analyses, profitable trading ideas and a consistent portfolio performance.
Sincerely,
DowExperts
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