Bitcoin slid further into negative territory yesterday, which came as somewhat of a suprise for many, but our readers should have been prepared. We have been alerting you about the weakness of each rally, and have been identifying downside targets for some time. The fact that BTC was consistently unable to break $50K in addition to the technical weakness (as measured by the Kovach OBV), along with lack of liquidity and choppy trading are all crypto DUMP signals. To be honest, the dump wasn't even that bad, compared to the extent of the selloffs we have seen in crypto in the past. We found support at $46.2K, and appear to be finding footing here. The next level above, $47.4K is providing some resistance, where it once gave us support. It is likely that Bitcoin will feel out the high $46K-$47K range before making another move, but if it dumps again, we have two levels in the $45K handle, then $43.8K and $43.1K. If we catch a rally, we could easily hit $48.2K, then $49.7K. For now, $50K seems to be a hard upper bound and we will require significant momentum to even test it again, which does not seem likely in 2021. Stay tuned for another longer scale commentary on what we can expect for 2021 and the beginning of 2022.
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