URGENT: It’s NOT OVER Until You See This Signal… [Bitcoin & Crypto]

Crypto Banter

Market Analysis and Predictions

The current market state is uncertain, with a recent flush of $800 billion in liquidations over 24 hours, mostly from long traders. This has led to a rebound, but the question remains if this is the end of the downward trend or if the market will go lower.

Key Levels and Targets

  • Bitcoin:
    • A potential target based on the "power of three" trade and minimum bull market target is $120,000.
    • The yearly open is a crucial level; reclaiming it could initiate a bull run.
    • Support levels at $85,000 and $78,000 are significant.
  • Ethereum: Needs to reclaim its yearly open at $3,335 for a bullish sign.
  • Solana: Similar to Bitcoin, it needs to reclaim its yearly open and show signs of strength.

Economic Events and Their Impact

  • The CPI inflation data coming out tomorrow will heavily influence the market.
  • The Trump inauguration event and the upcoming FOMC meeting are significant events that could impact the market.

Technical Analysis

  • The market is in a "no trade zone" until it breaks above a certain level or hits the next key support level.
  • Volume increase with price is a positive sign.
  • The USDT dominance chart is crucial, as spikes often indicate major tops in Bitcoin.

Altcoins

  • Many altcoins are close to their major support levels, about 10-15% away.
  • Some, like Injective, are already at support and might be good holds or buys if the market turns.
  • Others, like Casper and Ton, are approaching their support levels.

Trading Strategy

  • Managing risk is key, especially in crypto where volatility is high.
  • Capping losses at 10-15% is advisable to prevent significant drawdowns.
  • Look for swing failure patterns and volume increases as signs of a potential bull run.

Conclusion

The market is at a critical juncture, awaiting the CPI data and upcoming economic events. The potential for a bull run exists, but caution and proper risk management are essential. The "power of three" trade concept and reclaiming yearly opens are key indicators to watch.