Daily Trading Analysis: A Detailed Breakdown of Market Momentum BTC 20th JAN 2025
After yesterday's write-up, price action saw significant movement, immediately shooting up to reach $110k and breaking the previous all-time high. The subsequent price behaviour can be categorized into two distinct analyses: the 30-minute chart analysis and the daily analysis.
30-Minute Chart Analysis
Price quickly formed a flag pattern after reaching $110k, followed by a bearish breakout. It retraced back to the flag and continued its downward momentum. This area would have typically been an excellent entry for a short position, as the pullback into the flag and subsequent rejection is a high-probability play. However, due to external factors such as Trump’s inauguration and the bullish sentiment surrounding it, a short trade wasn’t ideal. The speculation about an executive order to create a strategic national bitcoin reserve further added to the unpredictability.
Price retraced down to $100k, breaking below both the 50 EMA and 200 EMA during its descent. However, a break of structure followed, forming a new higher low and higher high. Currently, price is encountering resistance at both the 200 EMA and 50 EMA. The day’s price action seems heavily influenced by fundamentals, with the bearish move likely tied to the reserve not being signed as anticipated.
30 Min Chart
Daily Analysis
On the daily timeframe, a reverse hammer candlestick indicates significant selling pressure around the $110k level. However, price also wicked off the $100k support level, showcasing strength at this volume area. Yesterday’s trading saw considerable volume, with sellers dominating the market. Much of this volume can be attributed to speculation about Trump signing the executive order for a national strategic bitcoin reserve. Since the signing did not occur, short sellers likely entered the market in response.
Despite yesterday’s bearish close, today’s price action is attempting to fill the previous day’s wick. The current structure suggests that buyers are stepping in at key support levels, though resistance at critical moving averages still poses a challenge.
Daily Chart
Conclusion
The BTC market on January 20th, 2025, showcased a fascinating blend of technical and fundamental dynamics. While the initial breakout to $110k was a historic moment, the subsequent bearish retracement emphasized the significance of both speculative sentiment and key technical levels. With Trump not signing the executive order for a national bitcoin reserve it introduced uncertainty, leading to heightened market activity. Moving forward, traders should remain cautious around the $100k support level and watch for clear breakouts or rejections at the 50 EMA and 200 EMA to guide their strategies.
