Hello traders. The trading instrument is Bitcoin on the W1 timeframe. Since last autumn, in my opinion, a quite expected decline has occurred, with the price mostly compensating for the growth that was seen last year. The decrease was anticipated, but not as intense as it turned out to be. A significant and clear bearish divergence on the MACD indicator was indicating the drop. On the second indicator used, CCI, there was also a bearish divergence, albeit smaller in size. Additionally, there was a rising wedge pattern that was slightly broken before the downward pressure started. After the price dropped to the higher ascending line and the support level at 98589, it bounced back to the resistance level at 108094. It was in a tight position, and I assumed we would get stuck in that range between the levels, forming an accumulation zone to later push in one direction depending on where more trading participants accumulate. However, it seems that those who move the market decided otherwise, taking buyers for a full ride; there was no accumulation zone, they significantly pushed the price down, and it's not certain that this is the end. After the rapid decline, there is already some correction present, which may continue as the CCI indicator is turning upwards from the oversold zone. Since the support line at 98589 was broken, testing it from below looks reasonable, even if the decline continues afterwards. An increase towards this level was expected, which ultimately happened. Here or slightly above, at the test of the ascending line from below, a struggle is likely to unfold, forming a scattered accumulation zone. Of course, the price may be driven straight to the first level that was previously broken, around 108094. This is a mirror level at the edge of growth, a very powerful weekly level. The price lingered at the bottom for quite some time after the drop, practically throughout December and part of January. And as expected, the rise to the level was made, but further growth is now in question. Two clear movements are visible: the rise to the level at 98589, albeit delayed, and the bounce back down from it. Beyond that, there is complete uncertainty. At the end of the month, there will be a decision on the interest rate by the US Federal Reserve, which I believe will have an impact.
