Altcoin Performance Relative to Bitcoin

This metric is taking a hit today as altcoins pull back as capital rotates back into Bitcoin. This pullback will likely last a few more days, so there is an opportunity to cycle altcoin gains back into Bitcoin until this metric stabilizes. However, you can also hold your altcoin positions as this metric is still in an uptrend, and the long-term potential for overperformance is very high.

Professional cryptocurrency trader with a passion for teaching others.

Bitcoin

Bitcoin had a beautiful day today, successfully reclaiming $100,000. We have regained bullish momentum on all timeframes and should continue to see overall price appreciation dominating throughout the week. Expect prices to pull back this weekend into early next week in anticipation of the Interest Rate print coming out on the 15th, but should that print be positive, we should rally into Trump’s inauguration.

Trends

5M: Bullish
30M: Bullish
1H: Bullish
4H: Bullish
D: Bullish
W: Bullish

Bitcoin has successfully regained its bullish trend in all timeframes. The 1H Guppies have been dominating as the pullback entry zone for this current rally. That range is currently $99,200 - $100,000. Limit bids for re-entry can be stacked there and at the 4H pullback zone of $97,200 - $98,000.

Key Levels

POC: $93,634
VWAP: $100,481
Value Area High: $102,185 - $103,823
Value Area Low: $97,139 - $98,777
Next Liquidity Zone Above: $103,550 - $104,267
Next Liquidity Zone Below: $96,522 - $98,580

Generally, following big breakouts like this, Bitcoin does not pullback very much and just continues aggressively. Nevertheless, this is a higher-risk type of entry. I recommend setting limit bids at $99,700 as I see a liquidity gap (likely a dip target). If Bitcoin keeps pushing, we should move rapidly for the next liquidity zone above.

Strategy:

While enthusiastic, discipline as a trader and following our pre-plan is essential for long-term success. We still face a potential bull trap between $100,000 - $108,000, and Bitcoin has key catalysts coming up in the form of the Interest Rate Print (15th), Trump’s Inauguration (20th), and FOMC Decision (29th). 

As I originally outlined, I don’t expect the Fed to pivot on interest rate decisions until March or May, which means Bitcoin is unlikely to sustain a continued rally above the current ATH until that event occurs. 

While I would love to be wrong, I expect a reversal in Bitcoin’s price somewhere around $105,000 - $108,000 unless something crazy happens following Trump’s inauguration (sighing of SBR on day one?).

Therefore, I recommend taking partial profits on Bitcoin longs opened up at or below $95,000. Move your Stop Loss to $95,000 or slightly above, and continue to hold positions. 

Look for re-entries on pullbacks to the key levels identified above.

That's all folks!
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