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Bitcoin and  Ethereum Market Analysis – 13.01.2022

The $40k support level held during the dump into the mid-cycle low, suggesting there’s a good chance of recovery soon. BTC recapturing $42.5k in the 2nd Half of this 60-day cycle is a good attempt to move higher over the next week.
Once this 2nd half of the cycle slows down, we may see a slow grind of that $40k area around the end of the month.  If that level holds, we could well be done with the decline/consolidation, and then a resumption of the primary bull thesis from that Feb 60-day cycle low may begin.

BTC daily chart shows the downtrend from November high still dominant, even though, the $40k support level is still being held.

We’re at the point where we need to hold the $40k support level for the re-accumulation phase to resolve itself. The scenario here is similar to May-June 2021 re-accumulation phase that lasted long into the mid- cycle of the 4-year cycle.

I see an uptrend after the Feb 60-day cycle Low but for now, we have to stay defensive by sticking to our spot position. From a trading standpoint, I prefer to wait until the Feb lows to look for longs.  As stated numerous times, we have competing trends on different time-frames, so that means no clear narrative to trade off. Happy to sit on my spot position.

Pic.1: The downtrend from November high still dominant even though, the $40k support level is still being held.
Source: Paid Content by Peter Brendt and his partners at bitcoin.live , BTCUSD Chart by TradingView

BTC weekly chart shows a downtrend of 35% from the peak of November 21. The $38-40k is the worst case scenario to hold, to move to 45k soon. If 38-40k can’t hold we may see much at first 36k and move even much further down… 36k is the strongest support we have.

Pic.2: A downtrend of 35% from the peak of November 21.
Source: bitcoin.live , BTCUSD Chart by TradingView

Ethereum
Similar to BTC, the weakness continues after losing the support of the descending channel, crucial for a possible reversal. I’m still worried about possible further down continuation.

A breakout and close above the $3600 resistance level will suggest a change in the trend. Go for long if we can recapture that $4200 key position, that will get us into the rising portion of the cycle.
This is not the time to lose your spot position but the time to get ready for the big move, after the February 60-day Cycle low.

Pic.3: Similar to BTC, the weakness continues after losing the support line of the descending channel, crucial for a possible reversal.
Source: bitcoin.live , BTCUSD Chart by TradingView

🔴This Market Update is created using Paid Content by Peter Brendt and his partners at Bitcoin.live. Peter Brendt is a Trader since 1975. Author and publisher of the Factor Report as well as Best Selling Trading Books. If you want to read full content by him and his partners, trading signals/calls in real time, daily/weekly/monthly reports, trading videos and podcasts, trading tips check out his VIP Subscription Service


🔴This Market Update is created using Paid Content by Peter Brendt and his partners at Bitcoin.live. Peter Brendt is a Trader since 1975. Author and publisher of the Factor Report as well as Best Selling Trading Books. If you want to read full content by him and his partners, trading signals/calls in real time, daily/weekly/monthly reports, trading videos and podcasts, trading tips check out his VIP Subscription Service