BTC - Cooling Off from January's Rally - Momentum Reset
2023 started with the first positive (bullish) momentum breakout since 2021. Going into February it needs to reset, which means price retracing.
Bulls want to hold the first green box (~21k) and confirm the Nov-21 diagonal resistance (white line) as support.
Bears want to drop below that Nov-21 diagonal resistance (white line) to retest lower levels. I'm watching the 38% to 50% retracement levels since they correlate to high value areas within the value range. Outside of extreme SEC moves I don't see a catalyst for sub 62%.
At a minimum I'm hoping to see a response from the TSI as it approaches the signal line (blue meets red). I'd like to see that happen near one of the key levels I identified... which will give us the highest probability (imo) for support.
Bulls want to hold the first green box (~21k) and confirm the Nov-21 diagonal resistance (white line) as support.
Bears want to drop below that Nov-21 diagonal resistance (white line) to retest lower levels. I'm watching the 38% to 50% retracement levels since they correlate to high value areas within the value range. Outside of extreme SEC moves I don't see a catalyst for sub 62%.
At a minimum I'm hoping to see a response from the TSI as it approaches the signal line (blue meets red). I'd like to see that happen near one of the key levels I identified... which will give us the highest probability (imo) for support.
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