Happy New Year!
Bitcoin is starting the year off still looking a little heavy and hasn’t quite found a bottom yet after being stuck in a downtrend for almost two months since making a new all time high in November. The 200 period moving average is still the key level for me to watch and unfortunately it is now acting as resistance with price below it. We did finally get on the other side of the downtrend line off the old highs but have failed to produce any bullish market structure to suggest a bottom is in. December 4th’s tail is vulnerable and asking to be explored so I wouldn’t be surprised to see a test of that. Breaking that level at $42k would not be good for the bulls so hopefully it can remain as support. Bullish divergences are still intact on MACD and RSI but OBV has been invalidated and looks weak with an M below the moving average. For now I’m expecting more down and patiently waiting for a sign of reversal.
Watch today’s video for a more in depth BTC analysis and a look at DXY, TOTAL, BTC.D, ETH, BAL, CAKE, SNX, DODO, KNC, BAND, MIR, SYS, MATIC and LUNA
Happy trading and see you next Monday when I livestream at 16:00 UTC. Subscribe to our youtube channel here.
