Daily Report – Bitcoin and Market Update (February 13 2021)
Middaily session is proceeding in a sideways, low-momentum movement above the BPRO bands with momentum wave developing towards aggressive upside trend. Again, current price action is just a result of recent 8k daily swing, which was the biggest bullish day ever for bitcoin. StockTKD candle color marked as orange suggests strong directional alignment and confluence displayed by many indicators. No sell signal given after 36k buy signal from BPRO, so not even thinking of selling BTCUSD anywhere near until the one appears. Classical technical analysis of chart patterns suggests that BTCUSD correction formed a bull flag. Based on the technicals, traders could anticipate overall measured movement target around 62k where the technical “power” of the bull flag breakout will expire. R3 at 62780, along with major Fibonacci extension of the bull market wave starting with 2018 bottom suggests targets around 64k. For this reason, 62-64k zone is going to be considered technical supply zone. Based on the onchain analytics attached below, it’s clear that big portion of institutional profits is being realized on major rallies. It doesn’t mean directly that trend is about to end. It means there is interest in realizing profits from major investors on sharp upside rallies. Worth keeping an eye on both realized and unrealized profits as this speaks a lot about the retail vs institutional sentiment.
MTF picture shows price action trading near BPRO baseline support at 44.8k and in case of intraday dump, that’s the expected upside bounce level. Due to price action forming low-momentum upside movement, it may form a form of a rising wedge. In that case, the upside resistance will work as dynamic threshold, which after breaking may bring an aggressive short squeeze, consuming over leveraged greedy shorts counter-trading the strong upside rally. $50k is definitely a strong psychological milestone resistance, which adds additional significance to the idea that after breaking 50k traders may see vertical, exponential rally. If anybody here were thinking over shorting BTC anywhere here, please don’t. Leave shorts for the bear market. Support levels: 44.8k, 42.7k. Resistance levels: 50k, 54115, 59929.