BITCOIN - Technical Analysis for Jan 2026
1. Technical Analysis Breakdown A. Trend Analysis & Price Patterns Primary Trend: The macro trend for 2025 was strongly bullish (hitting a peak ~125,000), but the asset is currently in a Intermediate Downtrend/Corrective Phase . Pattern Identification (Head and Shoulders - Bearish): There is a visible, large "Head and Shoulders" pattern. The Left Shoulder formed around 110k, the Head at ~125k, and the Right Shoulder at ~115k. The neckline appears to be around the 95,000–98,000 zone. The price has broken below this neckline, confirming a bearish breakdown, but is currently finding support. Current Action: The price is consolidating in a Descending Channel or a potential Double Bottom formation near the 80,000–85,000 zone. The recent candles show rejection of lower prices (long lower wicks), indicating accumulation. B. Elliott Wave Theory Wave Count: The rally to 125,000 completed a Grand Cycle Wave 3 or 5 . Current Phase: We are likely in a Corrective Wave C of an...