The weekly candle in the BTC market closed at $35828, forming the "hanging man" pattern, or the Hang Man, which we wrote about in our . Sellers managed to keep the key level of $39,000 and the local level of $36,500.
Trading volumes were the highest during the entire growth wave since September 2020. The appearance of a weekly candle, and even with such volumes, makes it clear to us that the balance of power is changing in the market. Sellers have found a support from which they can begin correction.
If we look at the 12 hour timeframe, we see that buyers have not managed to get the white trend line back under their control. Buyers are trying to buy up the sellers' offer and this is noticeable by the pins on the candles, starting from 15 January.
However, today an attempt to start a new growth wave is failing due to low volumes. This fact can only mean that in order to continue to grow, buyers need a more interesting price for BTC. Therefore, the probability of the continuation of the fall with the target of $32,000-33000 is very high. The 4 hour timeframe shows that there is another local trend line that forms a triangle. By keeping it, buyers will be able to count on a new attempt to break through $39,000. We will be closely monitoring the volumes at the mark of $32,000. The BTC dominance declined and we all felt it as we saw the coins start shooting. But a decrease in BTC dominance below 65% will entail its sale.
Therefore, this week has a good chance of continuation of the correction in the BTC market. Let's see if sellers are ready)
If it does correct it won't last long. The reason for this is simple - there is a wall of institutional money flooding into the crypto space. A fraction of the trillions upon trillions controlled by this sector can easily double the TAM within BTC. It's the simplest way to look at this. They will aggressively buy any significant dips and start to control more and more of the market over time. We have insurance companies buying BTC, Greyscale hoovering up insane amounts, ETFs on the way...check out Raoul Pal, Mike Novogratz - 2 guys from that world who have the network to understand what is happening with institutional money.
Nomad_XIV
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@Nomad_XIV, Forgot to mention, both are actively advising institutional investors on BTC, so they would know:)
panzerboomer
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@Nomad_XIV, Totally agree with you......In usual BTC runs you could expect an 85% like we've seen multiple times. This will never happen again based on simple supply/demand and the money buying BTC. They know BTC will be 1M in time so why even sell anything now?
OxbadOded
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@Nomad_XIV, Maybe the market players already distributing their holdings without causing a significant drop in price and when they're out the price will not be supported it will then crash and they will end up buying, rinse and repeat.
Bitpal
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The road is long
With many a winding turn
That leads us to who knows where
Who knows where
But I'm strong
Strong enough to carry him
He ain't heavy, he's my brother...
P_S_trade
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@Bitpal, good song) it made me relax for a moment)