Bitcoin Market Update: Time to Cool Down?

7 Jan 2021

In this analysis, I'll be analyzing Bitcoin's weekly and daily chart to provide updates on the market, identifying key areas of support and resistance to determine Bitcoin's next probable move.

Analysis
- To begin with, we can take a look at Bitcoin's weekly chart
- Last year, we broke out from 9k levels after years of consolidation
- We also broke through all time high levels, and we are currently trading at 39k ranges.
- Based on the fibonacci retracement levels, we can identify key areas of support and resistance.
- At 40k levels, we have our significant fibonacci level resistance, as well our psychological resistance
- There is also strong resistance-turned-support at 30k, which should hold for the overall bullish trend
- Below that level, we can identify demand zones

Daily Chart Analysis

- We can identify uptrends and phases of consolidation on the daily chart as well
- During the beginning of a rally, we see a bullish candle marked by a volume breakout
- During the beginning of a consolidation phase, we see a bearish candle, and a volume spike as well
- During the consolidation phase, technical indicators are cooled off and ready for another breakout
- As we reach resistance at 40k, we could expect prices to temporarily consolidate or correct before making its next move

Summary
In summary, Bitcoin's overall trend remains extremely bullish overall. Nonetheless, it's important to identify key areas of support and resistance, in order to maximize opportunity for a trade. With Bitcoin's bullishness comes an opportunity for altcoins as well, so if you missed this trend, make sure to be patient, and seek for other opportunities in other coins.

Here are three tips I want to share with you:
1. We will always have great opportunities. Always have cash prepared.
2. Learn to wait. Don't fomo.
3. History repeats itself. Always record what went well and what didn't. If you missed this rally, ask yourself why you didn't trade.