BTC Short-Term UpdateGood Evening Everyone! 😃
My short-Term view remains the same as last week despite a decent performance in the markets the last couple of days. Here I broke down the what I expect from Bitcoin in the coming days!
Fibonacci:
The 0.382level at 37k forms the current local support. The 0.5 area just above 38k is the level that we are yet to see a candle close above. The local Fib. retracement shows us the golden pocket (0.618-0.65 ) just below 40k. if we manage to break above the 0.5, we have to watch out as the area between 0.5 and 0.618 is common territory for bull traps. If we were to break above that area, macro targets such as the bull market support band and the 200 sma come into play. On the downside we can see perfect alignment with the Fibonacci retracement levels and our horizontal support lines.
Double top, broken channel and lower low:
Here you can see my post from the past weekend where i posted about a potential double top for BTC which later was comfirmed and BTC broke down from the ascending channel which resulted in the first lower low on the 4h since Dec. 24th.
Volume:
The double top was formed due to lack of volume in the area just below 39 and upwards from there. (See the VPVR bars on the right side)
Until we see more volume at the levels above 38k, I remain short-term bearish as far as breaking above 39k goes and I think it's more likely that we move down to the 33k support level in the next days/weeks and maybe get a local rally before we eventually drop down to 29k.
Stock Markets:
The recent mini ralli was iniciated by a strong performance and close from the US stock msrkets, that mini rallie is continuing today after stock markets are showing strength again. Although Bitcoin and the crypto market also have been looking healthier in the past week or so, in the most recent weeks and months we have seen that the close correlation between the price movement of Bitcoin and the US stock markets has been derailed at least temporairly as Bitcoin has dropped 36-40% more than those markets in the last 3 months.
Let's see if recent history can repeat itself and things hopefully turn around soon.
If you would like to know more about Bitcoin and larger timeframes, stay tuned for my weekly update video 🎬 tomorrow and until then you can check out my last Bitcoin update here below👇!
Thanks for stopping by, I hope you liked my post, and if you did, please drop a like or comment, it helps me to improve my ideas and puts a smile on my face! 😃🙏
