Did Bitcoin bottom out at $40,000? This is the answer which can only be answered by higher timeframes structure and market sentiment. Earlier we had a short position on BTC, which paved out nicely and perfectly. Now, we will be looking at the buy positions from the support level. Right now, market is resting at the support level of $40,000, and started to move up. At the retest of the level, we will enter the long position for a mere 18% gain, till the resistance. 

The descending trendline has been broken out for the breakout buys. Candles have validated the breakout buy. After the breakout buy, we need to wait for the retracement. At the retracement, we will have completed the setup for the long position. 

At the support level, golden retracement level of 75-78.6% confluences with support level. This indication is a strong one given we also have a break out buy for the trendline.

Both the EMA's are in a bearish sentiment. Earlier, market retested the EMA 50 and took a push down. Adter that, it started rising up and is still moving up. There is a high potential after market takes up the liquidity from the support level, market might break up from the EMA. EMA 200, although is in a bearish sentiment, we will set this up as the profit targets.

Both the oscillators are above the neutralized levels. These levels have indicated a bullish sentiment for the bitcoin. We might see a slight retest at the 50 and 0 levels for oscillators once the market pushes down to the support. This will add an increased probability for the market to continue going up.

We see a bullish continuation for the BITCOIN from these current levels. Earlier after taking the profits from the short positions, we are now looking at the long positions.

Did Bitcoin bottom out at $40,000?

Jan 15 2022

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