Was that the Bitcoin Bottom in January? (Bitcoin Analysis Feb 6 2022)
Bitcoin hit around 33K area Late January 2022 and the big question is was that the bottom? Couple of different Charts can be considered to obtain an idea, some possibilities.
In Figure 1 below 520 Min Bitcoin Chart it is obvious has not fully entered the Chart Middle zone, comes very close indeed but has not penetrated into it at all as of yet, instead has reversed hovering around 42k exactly the middle line between Upper and Middle Zones As such 42K can be considered resistance. The Middle Zone with the Fair Value 25724 continues to exert downward pressure in this situation as the Zone lines are quite wide
But that may not be whole story because Figure 2 consider the slightly lower time-frame 320 Min Bitcoin Chart has already reached Middle Zone and on its way back up above the strict "Fair Value" absolute mid-line is precisely 38456 the current price has gone well below that (33K) in January and is now penetrated up past that hovering around 42K, with tremendous room for upward growth considering the upper extreme outermost line on this Chart is greater than 150K!
A Conservative trading plan would exit all Short positions here at 42K and avoid buying anything until the Middle Zone gravitational effect in the 520 Minute Chart finishes its full course - namely Price on that Chart must travel below the Fair Value, this may mean giving up on quite bit of upside prior to a crash down to the 520 Min Chart Fair Value, but that future Crash may occur with this Fair Value Middle Zone has been dragged up further potentially to 40-60-80K middle This sort of pattern anticipated occurred on the 320 Minute chart in Figure 2 - observe the highlighted movements in Figure 2 Chart the expectation is a similar pattern could repeat itself on the 520 Minute Chart as well
A more Aggressive trading plan would be enter a Long position say anywhere in the range 42K - 46K range with a tight Stop Loss in the 34-37K range would be maintained that way for a while potentially possibly moved up to 40K if Price manages to reach say 55-60K may very well occur in the somewhere in the next 2-3 months before the 520 Minute chart gravitational move to the (future) Middle Zone would eventually transpire the only question is what would that Fair Value be 3 months from now will emerge slowly become clearer over time
Of course any Buyer in the 42-46K range should be well prepared for the scenario of 42K resistance holding and a more immediate move to 25K could occur as well at any time without any major upswing, that is why the 34-37K stop loss is crucial to have in place!
Figure 1: BTC 520 Minute
Figure 2: BTC 320 Minute
