Daily Report – Bitcoin and Market Update (January 15 2022)

By Cryptobirb

HTF 12H:

The middaily chart presents traders with relatively neutral picture at this very moment. There are several reasons for that.

Firstly, BPRO Momentum Bands display the volatility range spreading between 37.7k USD and 48.1k USD in the extreme points. Bitcoin is currently trading in the exact middle between the bands, which can be considered the most neutral point of the entire range. Volatility wise, BTCUSD is neutral.

BWAP block supports the price action over 41.8-42.5k USD demand zone and as long as BTCUSD trades over this area, there’s more technical chance of bitcoin reaching the upper volatility extreme. A bearish flip beneath the demand zone inverts the polarity in favor of bears, attracting bitcoin more towards the lower extreme zone 37.7-39.4k USD.

CTF Trailer Stop at 45629 USD is a technical invalidation for the bearish corrective movement lasting since mid November. Because this level is nearly located to the High Band volatility region 46.5-48.1k USD, I would personally suggest considering the entire cluster 45629-48100 USD one bigger supply zone. Longs open inside this area would not be in technical favors from the risk/reward point of view.

MTF 4H:

MTF chart shows off continued sideways movement.

The range bound within the 39.6-44.4k USD zone is somewhat supported more by the bulls than by the bears ever since the breakout above bearish CTF Trailer resistance 43.3k USD a few days ago. As a result of this breakout, a new bullish thesis has been established by CTF Trailer for the first time since the rejection of 52k USD level on 27th of December 2021. CTF Trailer supports the bullish thesis with a flat invalidation level at 41440 USD.

BaseLine is currently supporting the price of bitcoin in combination with BWAP block within 42.8-43.1k USD zone. Because this is a volume-based average price zone, it is supposed to act as a demand zone when BTCUSD trades above it, or supply zone whenever BTCUSD trades beneath the zone.

BPRO Level Lines provide resistances at [USD]: 45566, 49727, 52157.

In conclusion, bitcoin is trading with a bullish setup as long as it keeps closing the sessions over 41440, with the resistances defined above.

LTF 1H:

The hourly chart represents an intraday range bound type of price action (42.5-43.5k USD), inside a larger range bound (41.7-44.2k USD), which in my opinion is of more technical dominance. It is what I would call a dominant pattern in this local context. Naturally, both range bounds are part of a yet larger range bound between 39.6k USD and 44.2k USD, and the story goes on…

BTCUSD could use a successful close above the local pivot resistance at 43.2k USD, which if happened, unlocks the potential for retest of high 43000 USD or low 44000 USD.

Because it is quadruple or even five-fold range bound, the overall narrative is neutral and neither bulls, nor bears have advantage per se. We need clean breakouts outside the range bounds in order to gain more directional precision.

This way, a breakout of the narrowest range, unlocks the potential of retesting the low or high extremes of a larger range, etc.

BPRO Level Lines show updated supports at (USD):

43033
42333
40921

FEAR/GREED INDEX

Extreme fear continues…

Let me quote back what I said recently:

“(…) as long as the sentiment leans towards extreme fear, this implies much better buying opportunitiy than it is for selling bitcoin.

I stick to my point and observation that the sentiment indices do not tell you perfect time to open or close position but are good indication of whether an asset is cheap or expensive. Bitcoin has been cheap over the course of last weeks and over the time soon the profitability should be on the bulls’ side.

This indicator requires patience as it fades the trend flashing early symptoms of reversal.”

It stands valid. The waiting game continues with no other “signals” than it seems that contrarians could consider this good buying opportunity, which over the time should bring profitability.

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