BTC SHORT/CRAB, LET GO.BTC looks to be in a short term distribution phase, with a likely top already in ~47k on CME.
Expect moderate volatility this quarter, where I expect constant violent 10% swings in either direction between 46k and 41k until the ETF approval. Afterward, expect a drop to ~38.5k by the end of January. Note, January EOM has the highest likelihood of dropping the furthest beyond the "Q1 High probability range noted on the chart" towards 34.5k.
Breaking out the Q1 Range will likely result in continued momentum to follow until the next line of support/resistance, noted at 50k or 34.5k.
The last line of defense will be ~31.6k in the event of a full liquidation cascade as it supports the previous sideways structure we had between 32k and 25k since March last year and acts as the 0.5 fib from the ATH to this cycle low. If we drop further under 30k, than you must accept the increased probability of 46k being a bull trap and being the largest rug pull to occur and we head toward revisiting 20k, 15, and even 10k.
RWI (Random Walk Index) and LS (Liquidation Screener) are the indicators used. RWI is printing bearish divergences along with starting to crossover toward bearish trend. LS probably has shown the top as it has hit the red bearish territory and recently dropped out of it and heading over the median line currently at 33.7k (but is rising and i could see it bottom out toward the lower side of Q1 probability range by EOM JAN or even EOQ)
Overall, I believe the ETF may be a sell-the-news event that will in the grand scheme of things crab between 46k and 41k, until the end of Q1, but with a short visit to 38.5k. Breaking out the expected range of 46k-38.5k, begets continued momo in the same direction. Take note this is likely due to lowered overall volatility of BTC maturing as a whole. But alts may push forward after the expected flush.
Let go. Relax.
Q1 Ranges:
High probability
46k-38k
Moderate probability
52k-30k
Max probability
54k-18k
Trades:
Short @ 44k
TP 41k, 39k, (may carry it down to 30k depending on PA under 39k)
SL 47k
Short @ 50k ( if expected range breaks out)
TP 40k, 35k, 32k
SL 54k
Long @ 39k
TP 44k, 50k
SL 37.5k
Long @ 35k & 32k
TP 40k, 50k
SL 29k
