Crypto Market Overview – Week of January 31st

Table of Contents
Overview of BTC (mid-term, long-term, & short-term technical analysis)

Overview of BTC
This week, the US stock index and other stock indices have generally reversed from last week’s continued sell-offs, and BTC and Altcoins are no exception, showing short-term rises.

BTCUSD weekly candlestick chart

The price range recognized in the bandwidth (see last week’s article), will be confirmed once on the positive line after the rebound, and it is likely to be confirmed on the positive line with a lower wick this week as well.

In addition, the monthly chart has also turned positive, so even if it falls in the near-term future, we are thinking of building a short-term long position against the opening price of the monthly chart (it seems that buying will be made with the opening price of the monthly chart in mind).

BTCUSD daily candlestick chart
There are two points that can be understood by looking at the daily chart.

1 The current price range is located in the daily resistance zone of the horizon.

Therefore, it is considered the price range in this area is easy to enter into the profitability of long positions from the bottom and the construction of new short positions, and it is likely a conflict (ranging market) will be formed even in this price range.

2 Keep in mind it may be necessary to intervene time adjustments (horizontal axis adjustments) to confirm a trend change.

It is quite possible the movement will be similar to zone A on the chart I covered in last week’s article, so you should consider that possibility as well. In my opinion, the reversal will take a little longer.

Continuing from last week, the correlation with US indices are often seen even in the short term. Again, there are a lot of volatile movements that correlate with US100 (NASDAQ Composite Index), so be careful when trading if you are not used to it. Especially at 23:30 when the US market opens, volatility tends to be high and sharp. However, it seems it may stop at the horizon or zone discussed.

I also felt this week there was relatively little correlation in the short term compared to last week. I want to trade keeping in mind the environment can change every time. Once the US index has a direction, it will trend in that direction for a while on that day in the short term. Positions that go against that trend should be avoided.

BTCUSD 4-hour candlestick chart

The diagonal trend line I had seen since last week was rejected once, but was able to break through it the second attempt. If there is movement to try and test this trend line again (so-called roll reversal), taking a long position may be an option.