Bitcoin Futures Analysis for Today

TradeCompass for Bitcoin Futures – January 21, 2025

Current Overview:Bitcoin Futures are currently trading at $102,400, remaining within a tight range. Traders should monitor key levels for potential bullish or bearish breakout opportunities.

Key Levels to Watch for Bitcoin Futures Today:

Bullish Bias Above $102,700

A breakout above this level would put Bitcoin Futures above today’s developing VWAP, signaling potential bullish momentum.

Bearish Bias Below $101,955

A break below this level, which is just under yesterday’s POC (Point of Control), would indicate increased bearish pressure.

Profit Targets for Bitcoin Futures Today:

Bullish Targets for Bitcoin Futures:

1. $102,925 – A quick target for profit-taking, slightly above the bullish breakout level.
2. $103,220 – Another quick target for continuation.
3. $104,100 – Just under the VWAP from two days ago.
4. $105,245 – Near the POC from two days ago.
5. $106,550 – Close to the Value Area High (VAH) of January 17, offering an extended bullish target.

Bearish Targets for Bitcoin Futures:

1. $101,605 – A quick initial target for bears.
2. $100,995 – Just above the Value Area High from three days ago.
3. $99,890 – Slightly above the POC from three days ago.
4. $97,680 – A distant target for those considering extended bearish momentum.

Why These Levels Matter for Bitcoin Futures Analysis Today

VWAP (Volume Weighted Average Price):

VWAP serves as a dynamic benchmark for fair value. Price action relative to VWAP offers insights into market sentiment:

• Price above VWAP signals bullish momentum.
• Price below VWAP suggests bearish sentiment.

Point of Control (POC):

The POC, or the price level with the highest traded volume, acts as a magnet for price action. It is a crucial level for identifying potential reversals or consolidations.

Value Area High (VAH) & Low (VAL):

The VAH and VAL define the 68% of trading activity within a session. These levels often act as reliable support or resistance zones, assisting traders in gauging market structure and planning trades.

Summary of Bitcoin Futures Analysis Today:

• Bullish above $102,700: Watch for profit targets starting at $102,925 and extending to $106,550 for extended momentum.
• Bearish below $101,955: Focus on profit targets beginning at $101,605 and potentially reaching as low as $97,680.

Use the outlined levels and targets as your TradeCompass to navigate today’s price action. Trade Bitcoin at your own risk, and ensure disciplined execution with proper risk management. Stay tuned for updates from the TradeCompass!

This article was written by Itai Levitan at www.forexlive.com.