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 A-B-C structure.

    • Wave A: Drop from 125k to 95k.

    • Wave B: Bounce to 115k.

    • Wave C: The current drop to the 80k–88k region.

  • Implication: Wave C often ends near the 1.618 extension of Wave A or at strong Fibonacci support. The deceleration of the drop suggests Wave C is nearing completion or is complete, signaling a potential reversal (Wave 1 of a new cycle).

C. Fibonacci Analysis

  • Retracement: Drawing a Fibonacci retracement from the major swing low (~55,000) to the all-time high (~125,000):

    • 50% Retracement: ~90,000 (Price is currently hovering just below this).

    • 61.8% Retracement: ~81,700 (The "Golden Pocket").

  • Observation: The recent low wick tested the 61.8% level (~80k-81k) and bounced. This is the strongest support zone in technical analysis. As long as 80,000 holds, the macro bullish structure remains valid.

D. Moving Averages (10 & 30)

  • Status: Bearish Alignment.

  • Crossover: The 10-day MA is currently below the 30-day MA, indicating short-term bearish momentum.

  • Price Action: The price is trading slightly below the 10-day MA. A daily close above 92,000 would likely trigger a "Golden Cross" on shorter timeframes and signal a short-term trend reversal.

E. Gann Theory & Angles

  • Gann Angles: The price has fallen sharply away from the 1x1 Bullish Angle. It is currently testing the 2x1 angle support.

  • Time Cycles: The distance between the major peaks and the corrective bottoms suggests a time cycle turn is due. The end of December is historically a pivot time for Bitcoin (tax-loss harvesting ending, new year positioning beginning).

  • Squaring: The price of 81,000–88,000 represents a squaring of price and time relative to the 125,000 high.

F. Indicators & Oscillators (Inferred)

  • RSI (Relative Strength Index): Likely recovering from "Oversold" (<30) conditions. The consolidation suggests RSI is resetting to neutral (40-50). A break above 50 would confirm bullish divergence.

  • Pivot Points:

    • Pivot (P): ~98,000 (Price is below Pivot - Bearish bias).

    • S1 (Support 1): 82,000.

    • S2 (Support 2): 75,000.

    • R1 (Resistance 1): 96,000.


2. Key Levels

Level TypePrice Zone (USD)Significance
Major Resistance100,000 - 102,000Psychological barrier & Neckline re-test.
Minor Resistance94,500Recent swing high / 10 MA dynamic resistance.
Current Price88,244Consolidation zone.
Immediate Support85,000Local double bottom support.
Critical Support80,000 - 81,50061.8% Fibonacci Golden Pocket. Must Hold.

3. Trading Strategy

Strategy: "Counter-Trend Reversal / Swing Long"
Rationale: The asset is at a major Fibonacci support (61.8%) after a completed ABC correction. Risk/Reward favors the bulls here despite the bearish trend.

  • Entry:

    • Aggressive: Market Price (88,244).

    • Conservative: Wait for a Daily Candle close above 92,000 (reclaiming the 10MA).

  • Stop Loss (SL):

    • Strict: 79,500 (Just below the 61.8% Fib and recent wicks). If this breaks, the trend collapses to 65k.

  • Targets (TP):

    • Target 1: 98,000 (Test of the breakdown neckline).

    • Target 2: 110,000 (Right Shoulder resistance).


4. Trend Prediction: Next 1 Month (January 2026)

Forecast: Sideways to Bullish Recovery

  1. Bottom Formation: The sharp sell-off from 125k to 80k appears to have exhausted the selling pressure. The volume usually dries up during the Christmas/New Year week (current time).

  2. January Effect: Historically, if an asset sells off heavily in December (tax harvesting), it rebounds in January as capital re-enters the market.

  3. Technical Bounce: The test of the 61.8% Fibonacci level usually guarantees a relief rally, even if the long-term trend remains bearish.

Predicted Path:
Expect chop/consolidation between 85k and 90k for the remaining days of 2025. In early January 2026, expect a breakout above 92k pushing toward the 100k region. The trend is shifting from Bearish to Neutral/Accumulation.

Verdict: The chart suggests the "bleeding" has stopped. This is an accumulation zone for a relief rally.

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