Many wanderers and predictors have been targeting BTC at 100,000 by year end of 2021. But as we all witnessed, nothing of that sort took place, infact market was discounted at almost a  margin of 60% from the target price by the year closing.

That being said, we as traders, will analyze bitcoin just like all the other pairs.

For us, bitcoin has started to form a bullish structure on H4, with higher highs and higher lows being formed. Market broke the $38,000 mark and is due to retest this level. But this level, is a basic resistance and not a swing point. The swing point resides at the price of 36,000. This is the level we will enter our long positions. 

We have drawn two descending trendlines, which have been breakout buys and been validated by the price action and candles opening and closing above the trendline. With the support trendline, the prices are still above it and need to reject this trendline on order to flow the market upwards.

Fibonacci retracement is in between two supports. If the first support is breached (weaker support), we will anticipate the market to pull back from the retracement level. Even if this retracement is breached, there is a chance market wicking the support level at 36,000. At this level, we can add another position to scale in.

 EMA 50 has been breached and the test is due at the support level. Whereas EMA 200, resides at resistance level where the market can retest or breach the EMA 200.

RSI and CCI both are in an over bought region. This region needs to be neutralized in order to grab the liquidity to continue up. Till the oscillators are neutralized, we will wait for the market.

What to expect of BITCOIN?

Feb 05 2022

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