Bitcoin Sweeps The Range Low

Benjamin Cowen

Bitcoin Analysis

Current Situation

  • Bitcoin has swept its range low and bounced off, currently up 8.5% from the low.
  • The range low is around $90K.

Historical Patterns

  • Bitcoin often sets a low, goes up, and then sweeps the prior low before making another attempt higher.
  • This pattern has been seen multiple times in the current market cycle.

Possible Outcomes

  • Bullish Outcome: Bitcoin breaks through $100K and continues higher.
  • Bearish Outcome: Bitcoin fails to break through $100K, gets rejected, and drops below $90K, potentially giving back post-election gains.

Key Levels to Watch

  • $100K: main resistance level
  • $90K: key support level

Seasonality and Market Cycle

  • Historically, January has seen corrections in Bitcoin, with bottoms often forming by the end of January.
  • The current market cycle has seen a similar pattern, with Bitcoin sweeping its range low and bouncing off.

Influence of 10-Year Yield

  • A continuously rising 10-year yield could be a headwind for Bitcoin.
  • If the 10-year yield stays high, it may lead to a more bearish outcome for Bitcoin.