BTC update

When it comes to BTC and ETH which are extremely similar on the charts we can see the clear channel and we can also see the the rejections that occur on fibonacci levels.

We held the 0.5 fib under the pressure of the descending trend line and what was obvious happened, now this allows for two things , one would be straight up shorting which can make sense but it is indeed risky bacause we can always push out to max pain levels out of the range and then close back , we kind of did that on the 1st Feb at 17h, or we can DCA in alt coins that hold up well.

Now hear me out when I mean DCA I don’t mean the long term type of DCA , I mean for positions that last lass than 2 weeks.

Important levels we need to watch for :
Upside :
- top of the kumo cloud @37600
- Primary descending trend line (red)
- 0.5 Fib @ 38220
- Secondary descending trend line (white) , also the top part of the wedge formation

Downside:
- Ascending trendline
- Fib pivot in confluence with the sscending trendline
- Bottom of the kumo cloud (looking like a bucket) that might offer some support
- 0.23 Fib @ 35400

Fundamental things to remember
- Slight decorelation between the stock market and btc, check NDAQ for example.
- We are still governed by inflation problems around the world , especially US
- Asian markets are celebrating lunar year so trading activity will be low, meaning that there is basically no one to counter US movements.
- It takes not that much volume to break support levels, buyers are extremely fragile.

Remarks: It takes a lot of effort to trade in this type of market, remember that BTC has never met this type of situation before Covid + aftermath of Covid that we can see in the form of inflation right now.
The trade that is plotted on the chart is not a suggestion , but more of a possibility based on the history of the price action in the current range.

We have a wedge/ bear flag formation, DO NOT forget that, I personally think that the next point of this drop will be at 29-30 k , impossible to project further at the moment.