Bitcoin

Bitcoin is experiencing a lot of profit-taking today, as traders capitalize on the ‘Bull Trap’ zone above $100,000. 

Trends
https://www.tradingview.com/x/C9m5vOd9/

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

Significant selling pressure has caused Bitcoin to lose its lower timeframe bullish trends. Although the selling today was quite dramatic, there’s not too much concern for alarm technically. Daily and Weekly bullish trends remain intact, with trend support from $92,000 - $94,000. The 4H chart suggests ranging price action, oscillating around the 4H 200 SMA. A higher low above $94,000 would confirm a local bottom and a second push above $100,000 - likely beginning to form a bottom within the next few days.

Key Levels
https://www.tradingview.com/x/HgPooSiY/

POC: $93,637
VWAP: $99,514
Value Area High: $101,524 - $103,455
Value Area Low: $95,570 - $97,500
Next Liquidity Zone Above: $100,400 - $101,120
Next Liquidity Zone Below: $95,499 - $95,770

The bottom shelf of the Liquidity Zone Bitcoin currently trades in terminates at $96,331. There is a void in liquidity slightly below that at $95,900. The first group of buyers have stepped in on Bitcoin between $97-$98K.

Professional cryptocurrency trader with a passion for teaching others.

Strategy:

Significant liquidity was just tapped, as stops below $97,500 support just got taken out. There is potential to see a short-term bounce to $99,000; however, that’s a much higher risk. Catching falling knives is dangerous, particularly with Bitcoin. Big picture: a higher low above $94,000 is necessary for continued price appreciation throughout the next week in January. This is a bit early cycle-wise to expect a reversal in Bitcoin’s price; we currently estimate that early January should be bullish for Bitcoin - however, rules exist to be broken. Regardless, our first limit fill at $97,000 was just filled, and we have an additional order at $96,000. Our target for BTC in January is $105-108,000.

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