With many ideas coming into the new year, I'm taking a safe and easy approach. 3 scenarios (generally) to watch for. GREEN: We bust above 96.5 for monthly close and rocket. Maybe a dip to around 82k but the markets are too bullish. YELLOW: variation of green/yellow is what i believe is most likely. I wouldn't be surprised for a sideway ranging until about the 20th of Jan. A bounce off the 200MA would be ideal as well. RED: Total defeat. We lose the 200MA daily...idek, that's not good lol. watch for 64-69k I guess.
Indicators are showing seller exhaustions IMO. Stoch is level out, RSI is battling the 200ma, if it can break above that on the daily, very good sign. The ADX & DI also looking like its full of surprises. Green under Red (DI) with a curving to cross, while the blue lead line (ADX) is bottomed out. We see the green cross the red with the blue lead line trending up shows a move to the upside is likely.
Until the 20th-21st of January, this market is in limbo. The only reason we are where we are today is because Trump provided crypto with a positive landscape coming into the new year. Will he focus on crypto or will a war/pandemic/whatever steal the headlines. If nothing happens for crypto within the first 2 weeks of his presidency, that's not ideal. I do believe sometime during his admin we will get some type of heavy crypto news. Will it be on the 21st? I don't know. DCA accordingly, Don't unload cash until we get the word. Be ready to exit, Fast if need be.
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