Daily Report – Bitcoin and Market Update (February 1 2021)
Monthly candle closed as the highest candle ever, but this is rather obvious. 33-42k range came out as a monthly supply zone which suggests that safe longs were accumulated inside the candle real body in 27-33k demand zone. This area should also serve as the reference point to decide of what prices are over- or undervalued in February, which also remains to have corrective seasonality impact, similar to January. From the technical point of view, January 2021 candle reminds the ones of major reversals on the market in the past, yet accounting the market cycle phase BTCUSD is currently in, the bull market is unquestionably to resume towards the further upside targets: 53k, 75k, 96k. Nobody on this planet knows when and where the top comes, so focus on taking profits on the way up and/or on monthly basis.
Weekly session closed as high-wave spinning top candle, whose body is located in the lower half of the entire week. Traders should interpret this as a high-volatility zone full of directional uncertainty. For this reason, the correction can not be claimed to be over based on the candle records so far. Total of 33% retracement aligns perfectly with the overall historical records of secondary corrections presenting investors with 30-40% declines. The orange zones are supposed to display the general similarities of the corrections. History doesn’t repeat but if often rhymes. So far any price action below 32.3k was bought back on the intraweek basis, which implies where the local demand zone is located. Correspondingly, any price action above 33.1k was sold on the intraweek basis, which suggests that this zone is filled with supply. Weekly close in either of those zones will confirm directional bias of the market.
Daily sequence is currently leaning slightly more to the bearish side, recovering from the PTSD from the fakeout after Elon’s pump due to algos going mad. Current BPRO VWAP support is located 30.7k. Price action wise, BTCUSD has formed a large bull flag. Recent daily short signal from BPRO trend and ATR 35.4k is still held and buy signal appears after meeting the bullish conditions of closing through the baseline average at 37.8k. This signal, after triggered, will unquestionably bring confirmation to the overall bullishness and market being ready for the upside targets: 37955, 45925, 50860, 58830. Closing a day through 34.8k should bring intraweek bullishness. Until then, the orientation is pointing VWAP as local target at 30.7k.
Middaily sessions have recently been granted with bullish ATR-based signals that correspond with BTCUSD warming up for the major reversal. Having said that, it’s not confirmed to be ready enough just yet. VWAP middaily support is clearly located at 28.9k, which combined with downside-oriented BPRO bands suggest this target is not off the table just yet. Closing middaily or daily through 34.8k will trigger 12H buy signal to give early confirmation of correction come to end. Supports: 31807, 27536, 23005, 19416 (in case of black swan crash); resistances: 34.8k, 39861, 42176, 46708, 54028.
Intraday sessions on 4H chart are showing BTC struggling to stay on the bullish side of the local consolidation from the PTSD. Closing 4h candle through the baseline support of 33.3k would trigger sell signal for the intraday traders. BPRO trend until then is bullish. Local supports: 33.3k, 32990, 30759, 26341, 22006; resistances: 37323, 40345, 44680. BPRO bands are indicating upside orientation which suggests that unless close through the baseline occurs, BTCUSD is destined to aim at 37323 and beyond.
Hourly chart for BTCUSD is showing clean lack of direction. Closing through 32k to the downside would suggest BTCUSD retesting 28.9-29.2k demand zone intraweek. Closing through 34.8k suggests upside continuation towards 38.6k. Any price action in between is lacking the direction – as simple as it can get. It means intraday moves inside this zone is close to random and should be considered no-trade zone full of market noise. Directional bias is given with the help of higher timeframes analyzes given earlier in the report. Also, kind reminder that BirbicatorPRO is already live and available to public. If not claimed yet, use currently lasting discounted rates before the prices double.
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