Chart of the day

Where do we stand fundamentally?

Institutional adoption continues to drive Bitcoin's value. The influx into Bitcoin ETFs since their launch in the U.S. has been significant, with around $36 billion invested. This institutional buying is seen as a recent factor.

Post-halving, the Bitcoin mining landscape is changing with new tech reshaping the sector. Coin Metrics has noted a sharp fall in mining revenue, highlighting the evolving dynamics of Bitcoin mining.

There's anticipation around pro-crypto regulatory changes with the new U.S. administration, which could foster industry growth. Additionally, there are discussions about ending China's Bitcoin ban, which could have significant implications for global mining power distribution.

Bitcoin reached 105000 resistance, which could be a peak of the third short-term wave. A pullback in the fourth wave could start here before an extension higher in the third long-term wave. This is the possible reversal point in the short term. My KNOWPO trading system indicates a good low-risk short trade here, so I expect a reversal downside (outlined blue waves representing the short-term cycle).

This is also an intersection of two important channels to the upside: short-term and long-term. A break above the recent high of 108000 will invalidate the downside reversal and lead to an extension higher in the third wave to 120000. Bitcoin accelerated higher strongly but the rally at this stage is becoming stretched.

_{You can take a short trade entry with a stop loss above 110000 to target 84000.}