Bitcoin outlook: Bulls to stay intact while today's gap remains unfilled

Bitcoin

Bitcoin opened with a gap-higher on Monday and hit the highest since mid-September, in extension of sharp bullish acceleration last Thu/Fri.

Surge through psychological 20 and 21K after gapping higher by over 1100 pips adds to strong bullish stance as the latest acceleration fully retraced post-FTX crisis sharp fall.

Last week’s 16.5% advance marks the biggest weekly rally since the last week of July 2021 and some profit-taking could be a likely scenario as bulls cracked previous high at 21287 (Nov 4) and approach key Fibo barrier at 21467 (Fibo 61.8% of 25194/15437 bear-leg) and daily studies are strongly overbought.

Significantly improved sentiment on signs that the US inflation entered downward trajectory that would prompt Fed to further ease the pace of rate hikes in the next policy meeting on Feb 1, is expected to continue inflating Bitcoin’s price in the near future.

Bulls are likely to take a breather for consolidation, with dips to find solid supports at 20316 (broken 50% retracement of 25194/15437) and 20000 (psychological), where pullback should ideally stall to keep today’s gap unfilled and bullish structure intact.

Sustained break of 21287/21467 pivots would open way for extension towards 22761 (falling 200DMA) and 22892 (Fibo 76.4%).

Res: 21287; 21467; 22000; 22761.
Sup: 20604; 20316; 20000; 18691.