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Bitcoin Market Analysis – 11.01.2021

Bitcoin has had a massive stretch in the last couple of weeks which necessitated this near 30% correction. When every beautiful rally comes to an end, it goes into correction mode and that’s what is playing out at the moment. Price currently is down about 28% since touching a new all-time high of $42,000, few days ago.

$12,000 off the all-time high in less than 48 hours calls for concern especially to those who believe in one-way narrative that, BTC cannot see a 30% decline again; institutions won’t allow such.

From the cycle timing wise, this correction is expected to reset the sentiment and to clean up the BTC market.

From the daily chart, it’s showing a clear downtrend. It is confirmed by lower highs and lower lows, as shown in the chart. We are back to 10-day MA. This is something we prepared for, this is something I have been talking about. Anybody following the trend shouldn’t be surprised as we’re expecting a 35% correction here.

 

Fig.1.Bitcoin:35% correction is on the table here.
Paid Content by Peter Brendt and his partners at bitcoin.live

Is it a dip just for 20-day MA or a larger degree of decline or correction? I don’t have the answer, just have a plan that will accommodate both scenarios. For a Longer term sustainability, we should expect a decent consolidation.

Looking at the weekly chart, we’ve a little bit of blow off here and a pull back into a lower BB. Still overboard here on the weekly, well above 10 & 20 MA.
I would like to see a similar scenario that played out in 2017 to repeat itself here. The correction period in 2017 lasted for three weeks before the resumption of the vertical movement. It’s aimed to reset the sentiment and correct the cycle.

    

Fig2. Bitcoin: A similar correction that lasted for 3 weeks in 2017. Source: bitcoin.live

The consolidation is needed to clean up the BTC market, the demands should get a little bit soft as we have been running too fast.

Above all, I expect the bull market to resume after this correction finishes, we still have a long way to go to the end of this bull market.

 

🔴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