Bitcoin retested its 6-week high of $9,200 for the second time in ten days as it fought to continue its upward momentum. With 15 weeks to go until the halving in May, it has now established an upward channel which many think could be the direction of travel from now until the event itself.
Swimming in the Channel
BTC stopped slightly short of $9,200 overnight, but an upward channel has now developed with BTC sitting right in the middle of it. This presents two scenarios in the short term – either it pushes on and hits the $10,000 mark, or it pulls back to the $8,700 range before trying $9,200 again. A drop and daily close under $8,500 would not be good news for bulls as it would kick BTC out of the upwards channel and could signal a further downside.
The Only Way is Up?
The Crypto Greed and Fear Index doesn’t really give us an indication as to where sentiment lies in terms of Bitcoin’s next move, sitting at a midway point of 54:
Sentiment of the situation is pretty consistent across the board however, with many other traders adopting the same short term approach:
watching $9200 as key level for $btc to confirm trendline break. in case we dip before reaching that, we buy more lower. pic.twitter.com/xFgvDH9lBB
— CryptoYoda (@CryptoYoda1338) January 27, 2020
Hercules looking daily candle… breaking market structure with a higher high.
A close like this would prompt me to hunt for longs at the breaker ~$8.7k and even feel comfortable buying the dip down to $8.3-8.4k. pic.twitter.com/3ihRLnOiGC
— HornHairs ? (@CryptoHornHairs) January 27, 2020
Others however are a little more bullish about the future:
ignore calls to take profit on BTC
go fucking all in https://t.co/e1UXgRqHLU
— ๑ PANDA ๑ (@PandaofBinance) January 28, 2020
The #Bitcoin bear market is over.
Thank you for playing.$BTC $XBT $CRYPTO pic.twitter.com/1wHSsLN6gI
— ant (@ThisIsNuse) January 28, 2020
Alts Hanging on for the Ride
Alts too have in general profited by Bitcoin’s move, with big caps like BSV, EOS and LTC all moving more than BTC. They seem to be being dragged higher rather than moving under their own steam, although LTC in particular looks good for an independent move higher. ETC has, surprisingly, reached levels not seen since October 2018, despite very little reason to do so, showing that technicals are very much in charge right now over fundamentals, at least in the case of alts.
With the halving 15 weeks away all eyes are on Bitcoin, but the right alt will likely give you a higher return, at least until BTC leaves them in the dust.
