Daily Report – Bitcoin and Market Update (January 20 2021)
Middaily is showing symmetrical triangle breakdown and local support found upon MA50 12H. Momentum is not finished correcting as it’s not reached the extreme 0-20 oversold area for the oscillator. Average volatility has been declining, which is the signal of the upcoming massive volatility all over again – cycles. In case of closing the day below 34k in an ugly-looking bearish candle, there are high chances of further decline down to MA100 level 27.5-28k, which would confirm my overall scenario from many days ago. That is exactly what momentum analysis is suggesting based of the middaily chart. There is also a chance of fake breakdown with sweeping the lows and pushing price back above the broken support – adding significance to the support. It’s like an exception that confirms the overall rules. Intraday pullbacks towards the breakdown level of ~35.5k are possible.
LTF-MTF chart withing 4h timeframe is showing the overall tendency of the trend to be slightly more bearish than bullish, just like revealed in my past reports. BirbicatorPRO is proving BTCUSD is trading in the lower half of the volatility bands marking significant supports for the price. Trend status is downwards which additionally confirms that the arbitrary bias should be a tiny bit more bearish than bullish. The truth is, sideways trend is always tricky and serious traders rarely ever even pay attention to sideways trend per lack of direction and struggle to make money of it. And the symmetrical triangle is the most neutral of all the variety of patterns. Yet the main assumption of following the plan arranged is factual following it. This means that my old 26-28k scenario Is valid until the market proves otherwise. Has it proven otherwise? No, which is exactly why we need to assume the scenario is in play. This setup has additional backup from BirbicatorPRO, which displays the key levels for supports to be 28651 and 23936. Mean at 36961 shows current local resistance, knowing that prices have the tendency to return to the mean (mean reversion principle). In case this resistance is reclaimed, the new ones are given as follows: 40759, 43884, 48598. On top of that, we’re finally ready for the release of BirbicatorPROand it’s soon going to be listed on our website. Please watch the #announcements channel for full insights and info when it’s ready for you to unlock. BirbicatorPRO has taken months of iterations, optimizing, improving and mastering so that we make sure that it is safe for work and profitable. It’s going to be a game-changer and soon will help you automate your trades, to be listed on algo-trading platforms, as it includes complete trading system with entry/exit signals, take profit points, stop loss levels, and other tips like shown in the chart. It’s huge. Stay tuned!