Do you love crypto to the depth and breadth and height your soul can reach?
Today we are only certain of one thing - it's better to stay at home trading cryptoassets or learning about blockchain than going to a crowded restaurant! It will be more difficult to have a romantic conversation there than it is to find a 100x ICO these days.
You should stay at home regardless, however, because it's also an important day for bitcoin. As in previous times of indecision - as we talked about on the 23rd of January, five days before bitcoin's continued its major dip - we are now getting close to a dangerous area again.
From a technical perspective - which is gaining credibility after JP Morgan dedicated three pages to defending technical signals in its latest cryptoassets report - bitcoin will meet its one month long downwards resistance later tonight.
Initiated on January 6th after bitcoin failed to break through the symbolic £12.2k ($17k) level and further accentuated by the infamous 'CoinMarketCrash' of January 8th, this resistance channel has already caused bulls to lose trust in another key moment.
On Sunday January 28th, after we predicted that bulls and bears would fight throughout the weekend over the direction of bitcoin- bitcoin met this channel and started its free fall to £4.3k ($6k). Keep your eyes on the charts tonight!
Your lips are like cryptoassets and I want to get rich - W. Shakescrypto
Traders always predict one of three things, namely whether the price will go up, down, or stay the same. It might seem obvious, but that's the only sensible advice one should hear and they are part of these timeless trading rules from 1934. This is key to understanding what can happen now.
If bitcoin flirts with that resistance line for too long over the next few days, traders might lose patience and if 'whales', large players that can influence the market with a single trade, decide to short - i.e. bet against bitcoin - then it's likely the price will go down.
During that waiting game, look for comparisons between short and long positions as an indicator of what might be more likely to happen. Also watch the price of bitcoin futures, as they seem to have been influencing the spot market.
If bitcoin is able to break upwards, move slowly and wait for confirmation over a longer timeframe let's say 4 to 6 hours. This means it might take a few days until the market direction is clearer.
Finally for fundamentals, besides what we told you yesterday about the NVT Signal Ratio we are approaching the Lunar New Year. This has been a historical time of inflection and South Korea just started to downplay its previously announced trading ban!
Filter the noise and stay ahead of the pack
If this bitcoin analysis was not enough for you, Brave New Coin's popular analyst just released an even longer essay on what lies ahead. The bottom is likely in!
An insight a day could give you more profits to play
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