BTC/USD Bouncing from trendline support – what next?

BTC/USD has made a rebound from the daily trendline support, but is still capped by the resistance trendline.

BTC/USD 1D Chart, 13 January 2022

We are anticipating upside on bitcoin today on the short term timeframe, but overall are bearish. We’re looking for price to fill the inbalance on the 1H chart (see below). The RSI has also breached overextended levels, and we anticipate this next push up to form bearish divergence for the RSI.

BTC/USD 1H Chart, 13 Jan 2021

To summarise – upside into resistance at $45,000 seems likely.

BTC Options Market Increasingly Bullish

While Bitcoin has been busy printing lower and lower prices options traders have reportedly been increasingly bullish seemingly in an effort to “buy low”. Coindesk reported today that “The one-week put-call skew, which measures the cost of puts – or bearish bets – relative to calls, has fallen from 17% to nearly 0% since late Monday”.

Published by Tom Stewart

Head of data analytics at TradeProofer. Analyst at Opes Trading Group. FX enthusiast.

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