BTC January Selloff Effect - Historic Corrections 2016-2020
January has historically been one of the worst months for Bitcoin, thus extreme caution should be taken on the long side as I have mentioned earlier.
What do you think?
- Here we can see the early January profit taking and selloffs since 2016.
- Since Bitcoin just crashed around -20% in 2 days, this year might not be any different.
- The US Dollar has also been gaining upwards momentum recently. As Bitcoin is inversely correlated with the USD, Bitcoin's chances this month will be decreased further if USD continues to go up in value.
- I am currently looking at 30k as a support and accumulation area, and I am still very optimistic for Bitcoin this year, but that will be for another post. For now, I would suggest to keep an eye on the DXY (US Dollar Currency Index) and plan ahead for a possible comeback for Bitcoin in late January or later.
What do you think?