On January 10, Bitcoin fell below $ 40,000 with a loss of 1.53%, for the first time since September 2021 it fell below the psychological $ 40,000 mark. sales in the traditional financial market. But at the time of writing, the BTC price has bounced back above $ 42,000 again. While price expectations for a bearish Bitcoin would be more reasonable based on some macro factors, there is some analysis in favor of a potential bullish Bitcoin.
A rate hike or quantitative easing cut shouldn’t be bearish enough for BTC’s uptrend
On January 12, the US Bureau of Labor Statistics will publish the Consumer Price Index (CPI) for December 2021. As expected, the CPI data will rise 7% in the year to December, indicating that rising inflation will push the Fed towards tighter monetary policy.
However, economist Alex Kruger recently presented a thesis in favor of bulls via Twitter, stating that: “It was extremely bearish due to the Fed’s reversal rate. A rate hike or quantitative easing (QE) cut should not be bearish enough to reverse an uptrend in assets. “
Krueger also noted that Bitcoin has already fallen too far from its all-time highs as it is now technically oversold. If the upcoming CPI figures are below 7%, BTC could react to a rebound to $ 45,000.
According to Glassnode, a short-term short-term squeeze is developing
Based on the latest chart of Glassnode’s dominance oscillator between long and short liquidations, it shows that traders who yearn for BTC are constantly liquidating and losing money since November 2021.
As the BTC price tends to decline and bearish confidence haunts the market, while open interest volume rises to new highs, which means there aren’t many long trades left to liquidate. Simply put, BTC price is near the bottom and a short-term short squeeze is developing.
The technical forecast – the next bullish target is $ 44,000.
On the 4-hour chart, the bitcoin price rises above $ 42,700 and is trading around the upper Bollinger band. It also breaks the downtrend line that has been formed since November. It is worth noting that a golden cross appeared on the MACD indicator and a positive histogram band, which is a bullish signal indicating an upward momentum. The next target for the BTC price will be the 38.2% Fibonacci level ($ 44,000).
How to trade BTC with large price fluctuations?
According to the above analysis, we can predict that the BTC bull will hit the scene again in the near future. You can buy a drop in spot trading to make a profit. But if you want to make big profits, you should try BTC futures contracts.
Trading BTC futures with 100x leverage is a good tool. Every price move can give you a chance to make a profit. BTC futures trading allows traders to buy / increase or sell / decrease BTC. As long as there is market volatility, there is an opportunity to make a profit.
For example, if you use 1 BTC to open a long position of 100 BTC when it was at $ 39,000 on January 10, then BTC increased to $ 42,200 on January 11 and you closed the position to take profit. You will earn ($ 42,200 – $ 39,000) * 100 BTC / $ 42,200 = 7.33 BTC with over 700% ROI.
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