Good morning and welcome back from the long weekend. This morning (1/22) we saw a brief selloff followed by a quick reversal here in BTC. We like to look for patterns and trends, and what this price action reminds us of was the quick REJECTION of the pop up to ~$4,200 on January 8th. Seeing no follow-through, BTC went sideways for roughly 48 hours then back-filled this rally that started on January 6th.
Today we are seeing a similar chart, just flipped upside-down. On Sunday January 20th we saw a sell-off, and this morning watched an attempt at a follow-through get stopped in its tracks and reverse almost $150. This price action could be a tell for a potential backfill in the coming days from this weekend’s selloff. If this occurs, we would likely see bullish sentiment in BTC, with market participants claiming $3,600 as a major support level, and small rally into this $3,600-$4,200 range. We are still BEARISH here at BitOoda and believe rallies could be sold into, as the lows of mid-December may be revisited. Until then, we try give color on the spots in this range in which we feel traders can get in and out quickly to make short-term profits.
Today we are seeing a similar chart, just flipped upside-down. On Sunday January 20th we saw a sell-off, and this morning watched an attempt at a follow-through get stopped in its tracks and reverse almost $150. This price action could be a tell for a potential backfill in the coming days from this weekend’s selloff. If this occurs, we would likely see bullish sentiment in BTC, with market participants claiming $3,600 as a major support level, and small rally into this $3,600-$4,200 range. We are still BEARISH here at BitOoda and believe rallies could be sold into, as the lows of mid-December may be revisited. Until then, we try give color on the spots in this range in which we feel traders can get in and out quickly to make short-term profits.