The Bitcoin Price Discovery Correction

How deep could Bitcoin retrace?

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Bitcoin's Short-Term Ranges

Last week, Bitcoin was deviating beyond the Range High resistance of $101000 (black).

This week, Bitcoin is potential deviating below the Range Low support of $91000 (blue).

Last week, Bitcoin Daily Closed above the $101k Range High but failed to post-breakout retest it into new support, reverting back into the overall range.

This week, even if Bitcoin Daily Closes below the $91k Range Low, it would still likely need to flip the $91k level into support for price to drop into the $87k-$91k range (blue-blue).

Generally, BTC needs to Daily Close above $91k (blue) to preserve its current $91k-$101k range (blue-black).

The Quarterly and Monthly

Last week, the Quarterly level of $93700 served as support whereas this week it is showing signs of acting as resistance.

But the reality is that for bulls believing that price will still rally to new All Time Highs in this cycle (and history indeed suggests this to be the case)...

Then this current deviation below the Quarterly is a downside deviation moment which will become cancelled out in the future before it is reclaimed as support and price is launched to new highs.

And on the Monthly, it appears as though the $93700 and $96500 black levels are acting as resistance but the Monthly has still a few weeks to go until the Monthly Closes ultimately is in.

Bitcoin's Monthly Returns for the month of January tend to be patchy and predominately a bearish month across time:

It is usually February where the market picks up and so these higher timeframe levels which are teasing to be lost as support in the meantime are likely to be reclaimed as supports in the future.

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