BTCUSD → A "sell the news" scenario? What happened?

13 gen

BTCUSD tested a new high of 49K amid increased volatility due to positive news for the asset. But, as we can see, what many did not expect was a strong sell-off.



I have been talking about sell-offs from the 48250 level for a while now, since mid-November 2023, the moment BTC entered a new range.
The 48250 area is a strong resistance with a huge pool of liquidity and it is quite logical to see a false breakdown followed by sell-offs.
In addition, strong bullish news related to SEC approval of applications for spot BTC-ETF forms the opposite direction to the expected price movement:
At the moment, the "Sell The News" scenario is developing - this maneuver includes a possible price correction of 10-20-30%.
It is logical that the price cannot grow all the time and the asset pricing includes corrections to maintain adequate liquidity in the market.



At the moment the price is testing the nearest strong support 41639 and forms the third retest (false breakdown) of the support. In the TA format, the price can form a rebound, which we see. At the moment we should pay attention to the level of 42850 from which growth or a small rebound may follow and then fall to 40659 - this is a strong level, which is a risk zone and liquidity pool. A false breakdown may be formed before further growth.

Support levels: 42850, 41639, 40659
Resistance levels: 44490, 45500, 47280, 48250

Regarding technical nuances (resistance, false breakout) a correction is forming. The price may test one of the mentioned support and liquidity zones to free the market from unwanted participants. Fundamentally, BTC is strong enough to continue its growth both in the medium and long term.

Regards R. Linda!

14 gen

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