Bitcoin rallied on Wednesday initially falling earlier in the day before turning around and bouncing to the $37K level. This is a bullish candle as it appears the buyers have returned dips are being bought. However, this could be a dead cat bounce playing out and the sellers will look to fade the rally again as Bitcoin approaches resistance at $40K. 
(January 13, 2020 7:30PM EST)
Bitcoin rallied on Wednesday sending Bitcoin back above $35K to about $37K, grinding its way back up to the new ATH just above $40K. This price level figures to be resistance as it's a large, round psychological number and a doubling of the previous ATH. My primary inclination is a dead cat bounce that retests the $40K level, gets rejected, forming a short-term double-top and another selloff with Bitcoin grinding lower to $25K - $30K to find support and print a higher low before resuming higher. Bitcoin is still overextended and I'm skeptical that Bitcoin starts and completed a 30%+ correction in a single day before resuming higher to new ATHs. However, this is crypto so anything's possible.
If Bitcoin has indeed completed a 30% correction and buying demand is so strong to have caused V-shaped bounce and recovery, then Bitcoin will need to test and break above the $40K level and break out to $45K and $50K, where I think there will be even more resistance. It's somewhere around ~$52K that Bitcoin's market cap will equal $1 trillion, so at that point I think we could see a selloff. However, any rally thereafter should be further supported as a $1T market cap would give the green light for many more conservative institutional investors to initiate Bitcoin positions as Bitcoin will finally be "big enough" for them to even add an allocation.
During bull markets, Bitcoin tends to make ~30% dips, which Bitcoin would have had for a moment but recovered to only print half of that. Now, with selloffs on the monthly, weekly, or even daily charts, selloffs are rarely one-day-only, in other markets as well. Yes, they are faster, especially in bull markets, but that doesn't mean we can't grind lower or sideways for another month. After seeing today's impressive price action, Bitcoin might be making an exasperated second attempt at $40K, resulting in a double-top leading to another selloff and a grind lower to complete the correction. Ultimately, my primary target is $25K where I think there will be undeniable support underneath, and at that point, anyone who isn't already in will probably FOMO in on top of the already-growing demand on a daily basis. Anything below that is an absolute gift and should be bought. In the meantime, we'll have to watch Bitcoin's price to determine if this is a dead cat bounce/bull trap and drift down to the high $20,000's -- $27K - $29K where it might oscillate a bit, or a hyper-accelerated correction that's already been completed. I hope it's the latter but suspect it's the former.
Going forward my mantra is to buy on dips, dollar-cost average on a regular basis, and even earn Bitcoin if you can. The path of least resistance is up; don't try to fight it unless you're a degenerate gambler willing to get burned.
Support: Look for support around $30K (38.2% fib) and then $25K (50% fib). Anything lower than that is a screaming buy, though I'm not even sure we'll see $25K again. For more precise price targets, set staggered buy orders at Fibonacci retracements levels and monitor price action to see what gets filled, and if Bitcoin starts to form a convincing-looking reversal, adjust accordingly (up or down).
Resistance: Look for resistance at $40K. If Bitcoin breaks above $40K, look for $45K, and then $50K. After that, we'll probably move in $10K increments.
