🔥 BTC Best Day In 240 Days. Sentiment & Technical Analysis

٥ فبراير ٢٠٢٢

Yesterday we saw one of the best days in crypto in a very long time, +11.37% daily candle for Bitcoin. The last time we saw a move larger than this was in the middle of the summer-21 bear market with a +12% daily candle.

In my view, this massive candle is very important for BTC. Not only from a technical perspective, but also for a sentiment perspective.

Technical: First of all, we found a bottom at the Pitchfork channel, see below. Second, we pierced through the extremely bearish channel resistance, see dotted line. Both of these technical aspects are bullish, especially the second.

Sentiment: as you might have realized, sentiment is extremely bearish. Look at the comments on this website, twitter or any other crypto avenue. No one expected the bearish 3-month move to last this long. Furthermore, this move hurts way more than the move in the summer of 21. Summer-21 bear market did almost all damage in the first 2-3 weeks. The current correction is a continuous grind down so far. In addition, the fear and greed index has been in fear mode for the longest time on record, another signal that sentiment was in the gutter.

A massive day like yesterday is definitely great for sentiment. A day like this grabs attention of traders and will signal patient traders that now is a good time to enter the market in the hope of a longer-term trend reversal.

Happy trading!