Bitcoin has seen tremendous bullish momentum since the beginning of 2023, rallying nearly 200% since the open of $16,530 as of Jan 1st 2023 until its recent high of $49,048 USD as at 11th of Jan 2024, erasing all the gains lost in the wake of the Luna and FTX insolvency fiascos and then some. The year-long upside retracement has seen us trend nicely into a major monthly resistance that’s holding strong at $45,600.
This level of importance has held firm from the previous high’s made in March of 2022 and was solidified further in the following month of April with a bearish-engulfing monthly close that took us down to $37,640, which ultimately led to BTC losing the entire macro bull-trend we saw since the halving of May 2020.
Naturally, a pullback was to be expected at these levels given its significance and is in alignment with how we can expect price action to work during a bear market, being that nothing ever goes up in a straight line forever. Although, the same can also be said for downside, where we’ve seen price trending up consistently since the outset of 2023, we’ve also made a strong accumulation pattern between the months of March 2023 and October 2023, which gave us an ample foundation to spring up to the current highs.
This will in turn act as a support structure on this corrective move back down we’re currently seeing now, as we’d expect to see a strong line of defence in favour of bulls sitting around ~$30,600. This is where we anticipate the majority of buying liquidity currently to be sitting and waiting on the side-lines ready to scoop but the next opportunity.
Sentiment likely will spur in anticipation with the lead up to the BTC halvening event, currently due to be expected sometime in April 2024 going by on-chain analytics. Meanwhile, we’re watching in anticipation as we’re hoping that buyers will hold the line-in-the sand for BTC at said accumulation around $30,600, and in doing so setting us up for a healthy and primed market post-halvening in April of this year.
The Crypto-currency market is sure to get interesting with this ship nearly ready to sail, so strap-in by speaking to our team here at Stormrake and allow us to help you chart a course for your investing goals in the cyber-seas ahead!
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