Market Analysis: 11 January 2022

Welcome to the first episode of the Market Analysis by UpBots!

 

 

Let’s look at what the market might have in store for us, shall we? 

If we take a look at the chart of BTC dominance, we see that it is on a very important support level.

 

 

 

 

 

Bitcoin is also on an extremely important support zone and it is this convergence between price and dominance that gives us a higher probability of a bounce.

Be careful though, this doesn’t mean you should buy right away. Indeed, if we buy now we have to put our stop-loss under USD 37,500. However, our target is around USD 47,000 which would give us a maximum Risk-Reward ratio of 1.5.

 

 

 

 

 

 

We can on the other hand open a short position on retracement towards 47,000 USD. BTC has failed to register a lower low from a macro perspective, but the current short-medium term trend remains negative until proven otherwise.

 

 

 

 

 

 

So, what have we learned?

 

  • At  the moment the market is on a support zone with a possibility of rebound.
  • This does not allow us to open a long position given the risk/reward ratio.
  • We will rather open a short position on a retest at 47,000 USD.
  • We will change our bias from short to long if BTC manages to exceed 49,000 USD.

 

 

 

That’s it for today, take care and see you next week!

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