It was an eventful January when it comes to the Crypto Markets, to say the least, let's see what has happened so far by analyzing the BTC chart.:

Since we highlighted the formation of the Inverse Head&Shoulders pattern, BTC has made a nice run-up, gaining over 40%

Unlike in the previous (China Pump), it has done it more Sustainably, because we can see an Elliot Wave Structure (5 Waves), where all the waves have adhered to the guidelines set by the Elliott Wave Theory.

Once Wave 5 has concluded, a Correction started to take place, and it should come as no Surprise for several reasons:

The 200 MA is sitting around 9K and as of Yesterday, we have seen a Rejection from it

The RSI is overextended on the Daily Time Frame and a Divergence has occurred as well

The Zone between 9000-9300, possibly up to 9500, is a strong Resistance Zone

Now, on the flip side, BTC has managed to close above the 21 MA (currently sitting around 8400) on the Weekly Chart, which is a hugely positive development, because the Price was living under this MA since September 2019.

There was a huge Battle between the Bulls and the Bears Yesterday as the Bulls have done everything to get a Weekly Candle closure above the 21 MA and they have succeeded.

Now we need to wait and see what shape the Correction is going to take and how deep it will be.

Exciting times are ahead for sure!

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