Bitcoin on Track for Pullback to ~38,400/BT; New Surge into February Should Follow.
01/17/24 – “The Dollar Index turned its daily & intra-month trends up, spurring further upside and reinforcing the outlook for a rally toward 103.75/DXH – its 4th wave of lesser degree resistance and upside target. Daily cycle highs converge on January 19/22 and are likely to time a 1 – 2 week peak.
If so, that would likely spur a drop into the next phase of the Dollar’s ~4-week low-high-high-high-high-low-
The Euro is the inverse and continues to move through a textbook weekly 21 MAC transition and could drop back to 1.0770 – 1.0800/ECH – its 4th wave of lesser degree support – as part of that steady reversal of the weekly 21 MAC. A low is most likely on/around January 19/22nd – when daily cycles bottom.
Bitcoin & Ether are showing signs of topping after Bitcoin reached its 3 – 6 month/~48,000/BT target, setting its highest daily close at 47,985/BTH (47,108/BTC) on January 8. That fulfilled its multi-month buy signals from mid-September ’23 & mid-October ’23.
Bitcoin initially plunged from there, leaving intact its highest weekly close in Dec ’23 – that perpetuated an ~8.5 – 9-month/36 – 38-week high-high-high-(high) Cycle Progression…
Refer to the 1/11/24 The Bridge – Crypto Currency War Continues for additional Bitcoin analysis.”
Bitcoin & Ether continue to fulfill for overall advances from their Nov ’22 lows (projected multi-year lows) into late-2023/early-2024. Bitcoin’s September buy signals projected an overall surge, capable of spiking as high as ~48,000/BT before (at least) a multi-week peak would become most likely. At the same time, the Dollar set a multi-month low in late-December and could see a new rally after a pullback into ~January 25th.
That set the stage for a quick, sharp correction in Bitcoin, capable of reaching ~38,400/BT in a short amount of time – the level of the November ’23 high and a key level of ‘resistance turned into support’ as well as monthly support, creating the downside target for this pullback. That should be followed by a new surge into February 2024. (Refer to January 11, 2024 The Bridge – Crypto Currency War Continues for updates on overall outlook and analysis for additional rally into February/March 2024.)
Will Dollar Rally (from Late-December Cycle Low) Weigh on Cryptos?
Why Should Bitcoin Test & Hold Support Near 38,400?
What are Next Upside Objectives for Cryptos… Leading into February ‘24?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.