Bitcoin will drop below $90k

We've got a big week ahead, Bitcoin...

GM Explorer! We've got a big week ahead with lots of several important economic events lined up:

  1. Tuesday: December PPI (Producer Price Index) Inflation Data

  2. Wednesday: December CPI (Consumer Price Index) Inflation Data

  3. Thursday: December Retail Sales Data

  4. Thursday: Philadelphia Fed Manufacturing Index

  5. Friday: December Housing Starts Data

  6. Additionally, there are seven Federal Reserve speaker events this week.

Depending on the outcomes of these events, Bitcoin could either decline or rebound sharply.

Whatever the case maybe, we believe Bitcoin will first drop below $90,000.

Here’s why:

  1. There is over $1 billion worth of liquidations just below the $90,000 to $91,000 range. Market makers will most likely attempt to sweep through that point.

  2. On Friday, we noted that if Bitcoin gets rejected without breaking the red resistance band, a revisits to the green support band could put significant pressure on it, likely leading to a break below the green support band. The $90,000 to $91,000 range falls within this green support band.

  3. The Bitcoin chart shows a head and shoulders pattern. If this pattern plays out, Bitcoin may not only dip below $90,000 but could fall even further.

  4. If we receive any negative news in any of the data this week, Bitcoin will likely drop below $90,000.

SUI

$SUI is starting to break below its ascending channel. In past pullbacks, $SUI has consistently bounced off the lower boundary of the channel.

However, the current pattern on the chart suggests that $SUI may not rebound as it typically does unless the bulls put up a strong fight.

A daily close below the channel would indicate that buyers may have lost momentum.

Ai16Z

On January 11th, Ai16z broke its bullish trendline. Since then, the price of Ai16Z has been declining, following a pattern we are familiar with—a falling wedge pattern.

There is a 90% chance of a bullish breakout to the upside.

Once Ai16Z breaks out, we expect it to retest the wedge before making its way back up. The chart indicates that we are nearing a crucial decision point, which could occur as soon as January 15th.

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions.

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