 It has been an interesting, yet pretty boring week overall in the crypto market. We opened up the week with a new low of $32,000, it was around $32,900 to be exact. And then fought our way all the way back up to almost $39,000 before eventually leveling out and kind of, you know, sitting where we currently are right now, which is around that $37,000 area. So today we will be taking a look at these charts to see if there's anything that we can be expecting over the weekend. We'll take a look at how the market structure is looking now. And we're going to cover some breaking news in the Bitcoin space today. Bitcoin legal tender in the US. Let's go ahead and dive right into today's video. Hey, what's up, Jay here, and welcome to Bitcoin Daily. We bring you guys the best tips, tutorials and ideas to help you guys become profitable and successful investors. The goal of this channel is to empower you, the community with the knowledge and resources to help you get your wealth up to that next level. So if you guys are new to the channel, consider subscribing, turn on notifications. And if you enjoy this video, make sure to smash the like button helps us a ton with the algorithm. And of course, if you have any questions, drop it in the comments. Let's jump right into the video. So let's go ahead and start with the news yesterday. The president of the United States, Joe Biden said that he wants crypto rules as a matter of national security. The report says that the Biden administration is preparing to release an executive action that will task federal agencies with regulating digital assets such as Bitcoin and other cryptocurrencies as a matter of national security. The national security memorandum is expected to come in the next few weeks. They will be analyzing digital assets and assembling a regulatory framework that covers cryptos, stablecoins and NFTs. Do you guys think this is good or bad? I think it's all going to depend on what type of rules exactly are they going to try to come up with because the last time that they had a hearing to talk about cryptocurrencies, they did not seem to really get it. They did not understand it. I was surprised at how little knowledge they had. So how can somebody that doesn't have a lot of knowledge in the space and really get it and understand it? How can they create rules? That's like me going to play cricket. I've never played cricket. I don't understand cricket, but me just going out and being like, okay, guys, I'm going to create all the rules for this entire sport. Basically the same thing. If the rules are too strict or harsh, it could definitely stifle innovation and creativity and it will probably lead to people and tech companies leaving from places like the United States to other places where they don't have those type of rules. So we will keep an eye on this report. We will see what happens. Let me know what you think about this in the comments. In other news, a bill is being introduced in Arizona to make Bitcoin legal tender. Yes, this is official, guys. This is the official website where the bill is being submitted. You can see here the legal tender definition. It consists of any medium of exchange that is authorized by the United States Constitution or Congress for the payment of debts, public charges, taxes and dues. Now the reason why this is very, very interesting to me is because two days ago, the IMF was urging El Salvador to drop Bitcoin as legal tender. The IMF director stressed that there are large risks associated with the use of Bitcoin on financial stability, financial integrity and consumer protection as well as associated fiscal contingent liabilities. The IMF was urging authorities to narrow the scope of its Bitcoin law by removing Bitcoin status as legal money. So it would be very interesting how the IMF would react to if something like this happened right within the United States. All right, guys, so let's dive into these charts now. So with the month coming to an end, you can see that so far in January, we are down 19.25%. From Bitcoin's all-time highs, we're currently down about 45%. And the lowest that we've gone from its all-time highs was 52% earlier this week. So looking at where we are right now on the monthly, you can see that we fell below this big, big support area that we were watching for a while here. And unless we get back on top of it, it's going to be difficult for Bitcoin to jump up and continue up. However, although that is a strong resistance there at this point, if we do break above it, we should be expecting something similar to what happened here before. So remember, last time we set up an all-time high up here that was around that $65,000 area before having the massive pullback was about a 55% correction before bouncing on this support here and basically starting another leg to the upside. So with that move to the upside, we set up a new all-time high before yet again dropping for another 50% pullback correction this month. So although we've lost this main support that we had here, there is still a possibility to keep this structure intact. Remember on Monday's video, we spoke about we still have a higher low here as long as we don't go below this lower low or this higher low of $28,800, the structure is still actually intact. This is still higher than this right here. So that would be considered a higher low. So what could happen here is something where we go like that, correction, wave two, right? Correction, we can have a wave three where we could possibly set up a new all-time high. If we zoom into the daily chart here, you can see this very, very obvious pattern here. This is basically an M, right? So what exactly does that mean? It's basically an upside down W. Now why would it be an upside down W? Because most of our investments are probably upside down at this point. So if we look at it upside down, it's still letting us know that we're still winning. So it's still a W. I'm just kidding, guys. If we take a look at the weekly here, you can see that the pattern that we've been watching is still intact. Remember that we broke beyond it on Monday? Well, we are about to close inside of it. So this falling wedge pattern is still intact here. This is a very, very big falling wedge pattern actually that started since back in November. Another thing that you can also see here is that we're holding on to this Fibonacci retracement level. That's the 50% level we're still holding on. So remember, we've spoken about these levels before. And basically what we tell you guys is that if we lose a level, usually we test the bottom of the level because we jumped back up and above the level over here. It means that we don't have to test the bottom of this level at this point. So if we were to lose this level, then we would probably be testing this level. And what level is that? That's around that $28,000 level that we went to last time that we were down here. Right? So you can see last time we lost the level right here, we tested the bottom of the level before eventually continuing up. So so far, so good. We're holding up as long as we stay on top of this level, we're probably going to test this area right here. And it's going to be very important. Now of course, this Fibonacci level is also important, but this right here is probably going to be the ultimate test because there we have two different resistant levels. We have this huge resistance here that's been holding us back since November, which of course would also be the breakout of the following wedge, a reversal pattern reversal signal. And then we have this huge, which was a previous support here that would now be a resistance. Maybe the momentum from the breakout of this following wedge would get us right over it, but it is going to be something to watch. We are going to need to break basically three different resistances in this area. If we want a chance to retest that $50,000 level and then possibly newer all time highs after that. So that's the first level that we're going to be watching here. If we continue on the way up, now that level would be up around that $40,000 area. If you zoom in more into the daily here, you can see how we've been green so far this week since we got that oversold signal down here. Remember, we spoke about this on Friday. We spoke about this on Monday. We told you guys, there's no way that it can continue being oversold. We need to see a move up. If it's just a relief rally, even if it's just a dead cat bounce, we need to see a relief up because if you go back into history, you will see that every single time we've been oversold, we've always had a rally back to the upside. It never stays oversold on the daily. We showed you that most of the time we get a rally back within a week. If you look here, we went into oversold on the 20th and we got out of oversold on the 26th, so it took about a span of six days and now we're back out of that oversold area. So definitely a at least short-term bullish signal here. We're seeing a move up. We're seeing momentum back to the upside. We got back above this big level. We've held the bottom of the falling wedge and now we have a shot at retesting the top here, which sits around that $39,000 to $40,000 area. A break above this, then of course we have this $42,000 area, which is a previous big level and we have what used to be the big support here, which will now be a resistance. But again, the momentum from breaking out of a falling wedge could be enough to catapult us back up and above possibly $45,000 and at that point, we would be retesting the $50,000 to $54,000 levels. So trades that we're going to be watching are probably going to be a breakout above $38,000 is maybe a level that you could play. You have to use caution here because at any time it could just easily dump back down. You can see that it happened here a couple of days ago. So $38,000 is a key level though. You can play that in either direction depending what your sentiment is. If you think that we can continue up, then 38 is an interesting level to play for a long position. If you think that we could go down, then if you see a break above, you should set a short sell order right below $38,000. So if we get rejected, you can enter that trade and write it back down. Because of course at $39,000, that's when we reach this level here. So there's going to be a lot of resistance. Of course $40,000 is an important number as well. It's a big whole number. We should see a lot of resistance there as well. If we take a look at the order books here, you'll see that there's a lot of buys at the $35,000 level currently. Then the next spot after that is $32,000. And then beyond that is sitting at of course at $30,000. That's where we have the most massive buy while currently. Of course as price changes, all these orders can change at any time as well. If we look at sell orders, there's not any one level that just has like a massive, massive amount of sell orders. I guess the biggest one from what I'm seeing here, what it's showing me, it's way up at $44,000. Everything else is pretty much just kind of small orders at this point. So I'm not seeing, you know, any huge sell walls right now. That's pretty much it for today's videos guys. I hope you enjoyed it. If you did, make sure to smash that like button. It helps us a ton with the YouTube algorithm to get this out to as many people as possible. Helps the channel grow, helps the community grow, so to win-win for everybody. Also if you're new to the channel, make sure to subscribe, turn on notifications. And of course, if you have any questions whatsoever, drop it in the comments. Also if you watched this video to the end, let me know in the comments that you watched it. I appreciate you guys so, so much. I'll see you guys on our next one. Have a great weekend. As always, peace and love.