Bring on the bulls? - Bitcoin & SPX 📈

What’s up team. Hope everyone is having a great week! 🤝

Let’s dive right in…

Looking at the Bitcoin Daily chart, we’ve witnessed a parabolic pump to start the year having broke $21,000.

Although there were some great trades to be had this month, it seems that this was a juicy bear market rally.

Bitcoin failed to break above the $21,500 mark getting rejected back down into the $20,000 range.

This dip could continue with there being virtually no support until $19,000.

Combine this with price breaking down below the bear-flag on the 15m chart, and it looks the elevator down has begun.

There’s still a possibility though that this rally regains steam and pushes the September levels of $22,000.

Either way, what a way to start the year!

Now let’s look at equities.

US Equities (SPX) tests the 2022 upper trend line again for the 4th time, this time a lot faster before:

Bears finally got the start of the much anticipated down leg they were hoping for.

It's now very important for them to follow through for multiple red days.

They put in another strong defense at the 200 day ma and the 2022 trend line bringing price back below both.

My counter to the bears are the 2 bullish alerts on both AlgoBuddy Premium 2.0 and Momentum 2.0 indicators that just printed on the daily SPX chart.

Plus, it was a lot faster for the bulls to bring price back to the 200 day ma than previous tests.

I'll be looking for price to respect the thick AlgoBuddy green ribbon (3900), and give us a good reaction to stay above it.

If this is the case we will look to jump into long positions.

IF that fails I could see it getting ugly fast.

Regardless of the bad data and red day today, it feels like the market has been optimistic so far this month.

The bears now need to prove that they're willing to sell hard going into February.

Eyes peeled out their team. 

Cheers!