BTC Finding Support!

26 Jan 2022

BTCUSD on the daily timeframe has found some strong support right around 35K (USD) and it seems we are showing some strength moving forward, however we can't be too confident as of yet due too how the market is moving on a daily basis. Either way i am looking for a reversal at some point soon, in previous cycles we saw many corrections ranging from 30-50% even sometimes there has been larger downside flushes, in a lot of cases following the correction prices saw massive growth and an impulse to the upside. Looking at our resistances that are coming up very soon are the 0.7 FIB level at 37867$, we have resistance from 39K-40K and finally we have resistance coming from the midline on the bollinger bands. Now lets look at that, a good sign right off the bat is that we are steadily seeing closes off of the bottom band, as you guys can see closing our daily on that bottom band triggers a big run to the downside (in most cases), so its very positive that we are showing strength by coming out of that and off the bottom band. The longer term goal for us on the bollinger bands has to be breaking through that orange midline, being above here opens the door for us to make a run for that top band, where with same as the downside, if we close ontop of the top band we could see a fast sharp move up! Now the MACD, we are slowly but surely coming out of a bearish cycle, our red bars are decreasing each day and we are heading for the midline where we can then flip to bullish. We want to see the blue MA break above the orange and have some vertical shape to it, moving up steadily and keeping separation from the orange, the reason being is because having good space in between makes it more difficult to trigger a bearish cross, also this allows price action to have a cool off day or two without trigger that bear cross. The final thing we want to see on the MACD is a strong push above the midline on the histogram, we need to see increasing green bars each day showing an increase in bullish momentum. Now lets look at the wavetrend, we are bottomed out it seems, we are reversing out of the buy zone at the very bottom and we are looking for a continued smooth transition to the upside, if you look at the daily wavetrend you will see that these transitions are smooth and rarely have jagged moves, so we can expect a decent bullish wave coming up soon, we haven't seen a wave above the midline in quite some time so hopefully we can see something close to this soon. Overall i am looking at many different buying opportunity's around the board, of course dollar cost averaging in! Not financial advice just my opinion!