Jan. 22, 2021- Bitech.pro cryptocurrency market outlook.
Hello everyone. Welcome to the cryptocurrency market overview. Let’s have a look at what’s going on.
I’ll start with Bitcoin as I always do.
On the daily chart you can notice quite ugly combination of two red candles which shook me out of my spot holdings. Moreover, the price broke down and closed below mid range around $35000 and nuked towards $29000 last day. Heavy selling volume prevails right now. RSI broke down below 50, not a good sign as well.
Daily chart does look pretty bad for the bulls after the last daily close. However, we can see a small relief rally in the coming hours/days. Here is why I do think so.
On the 4h we can see descending triangle formation with the bottom around $30k. Right now price is bouncing off $30k support. As you can see stops were taken out at $30260 swing low. 4h RSI bottomed out and Stoch RSI just did a cross. Gathered liquidity can fuel a relief rally to mid range/diagonal resistance of the triangle. If I will see bullish signs I’ll take a small long with a target at $35k. So far will just focus on the binary options on the low time frames.
Let’s have a look at the $BTC CME chart.
On the 4h chart gaps look more and more reachable now as a target. First target at $23780 and the 2nd $18165. Second one looks more safe for buyers. It can be deemed as a resistance/support flip and VPVR support. All these provide much safer entry for the buyer.
Let’s move to $ETH now.
Price broke down below weekly resistance and bottom line of rising wedge. Currently retesting it from the bottom. If price manages a close above $1250, one can expect a test of all time high. Right now it’s a bearish retest, for me personally.
Encyclopedia of Chart Patterns suggest the lowest point of the valley as a target which lines up with support around $680–740.
Conclusion:
Overall, the picture isn’t attractive for the bulls now.
I’ll stay out of long-term holding for now and play over binary options at Bitech’s OptiPro module.
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