BITCOIN - TECHNICAL ANALYSIS - 13 JANUARY 2022

𝗧𝗘𝗖𝗛𝗡𝗜𝗖𝗔𝗟 𝗔𝗡𝗔𝗟𝗬𝗦𝗜𝗦

The Bitcoin price rose 2.6% yesterday, after bouncing up at the support horizontal line (around $41,000).

The price is now trading well above the area between around 39,500 and around 42,500 (see the green rectangle in the picture) which is acting as strong support, as I expected.

The price is still trading below the key moving averages, exactly below the 200-day MA (green moving average), below the 21-day MA (blue moving average) and below the 50-day MA (red moving average).

The daily RSI is outside the oversold zone, but still in the bearish zone.

There are 2 possible scenarios at this point.

The price could move up and break the resistance horizontal lines, above 45,400 and above 47,000. That would be a very bullish sign and a confirmation that 40k was the bottom. In that case, we can expect new highs in the bitcoin price.

In the second scenario, we could see the bitcoin price move higher and be rejected at the 45,400 level, which could act now as a resistance line (previous support). In this case, we could see the bitcoin price drop below the 40k level, to new lows.

Anyway, any drop in the bitcoin price is a buying opportunity, in my view, as the bitcoin fundamentals have not changed.

Instead, this is the best time to start buying and accumulating more Bitcoin.

The short term (daily timeframe of Bitcoin) still looks bearish.

However, the trend is still bullish in the long term (weekly and monthly timeframes), so I’m not worried.

It’s really important that the price goes back above the 200 daily SMA, as soon as possible.

If the second scenario will play, that would be bearish.

There is a lot of talks recently about the potential “Death Cross” on Bitcoin, which happens when the 50-day MA (red moving average) moves below the 200-day MA (green moving average). That might lead to more downside and it might happen today or tomorrow. This is possible, however, for me is a lagging indicator, which confirms what we already know, that the bitcoin price dropped from the last all-time highs. For this reason, I am not worried. If we were to see the bitcoin price drop below the 40k level, that would be an even greater opportunity for investors to buy and accumulate bitcoin at lower prices.

𝗦𝗘𝗡𝗧𝗜𝗠𝗘𝗡𝗧 𝗔𝗡𝗔𝗟𝗬𝗦𝗜𝗦

The Crypto Fear & Greed Index is still in “Extreme Fear” mode.

Every time there is a drop, investors are scared.

However, this fear is not justified in my opinion.

These types of corrections are common in the crypto market.

The best time to invest in cryptos is when everyone else is scared.

And now it’s the time to invest, in my opinion.

𝗕𝗜𝗧𝗖𝗢𝗜𝗡 𝗗𝗢𝗠𝗜𝗡𝗔𝗡𝗖𝗘

The Bitcoin dominance is at around the 40% level.

However, if the bitcoin dominance is going to break and remain below that level, I expect a new altcoin season to start.

I’m already positioned for this scenario.

𝗣𝗢𝗥𝗧𝗙𝗢𝗟𝗜𝗢 𝗨𝗣𝗗𝗔𝗧𝗘

As I said, now is the time to remain invested, keep the copy open and add more if you can, or start the copy if you are new and wait for the massive run.

I still think that bitcoin will go over $100k by mid 2022.

I am close to 500 copiers (investors) and my AUM is around 700k.

I will move soon to the next PI level.

Have a nice day, guys!