Having started 2018 in a bearish (crashing??) fashion, the gold in crypto has finally stabilized for at least 5 days. The volatility is not helping investors who are looking to HODL both Bitcoin and Alt Coins. But the technical is telling us that the sideways might be going to end soon.
Here is a 4h chart of BTC/USDT from Binance. There is a strong resistance at 11,800, which was tested multiple times on the 17th and 18th of Jan and was broken up on the 19th of Jan. However, it wasn’t able to hold on and the selling started soon after until the 10,000 level held on to it.
The psychological level of 10,000 suddenly became the support and from there, it formed a Higher Low and the a reversal wedges were formed. It is at the strong resistance level of 11,800 right now and we shall see it either break it to find 13,000 or it shall test 10,000 - 10,300 levels as a spring board before it launches another attempt to test 13,000, or even 14,000.
Before it breaks, I reckon there will be a retracement of at least 50% from the low of 10,800 to the high of 11,800, which is around 11,300. And don’t forget tomorrow, 26 Jan 2018 is the expiry of CME Futures. Expect it won’t be an easy ride.