Looking at Bitcoin (BTC) on Bitmex (XBT), there are three levels to focus on heading into the expiration of CME futures on Dec. 28.

Key support is at $3,550. That level is the 50 percent retracement of the recent up move. If that level does not hold, a move to $3,400 is possible (Figure 1).  Above the market, $3,977 is an important level in Gann analysis.

 Figure 1

If Bitcoin (BTC) can hang around that $3,977, it increases the chances that there will be a break above $4,250. Any breakout above $4,250, could create a sustained up move that would target $5,250.

We are looking at these levels to see if a head and shoulders bottom is developing in Bitcoin (BTC). Over the last seven days, the pattern has been tough to draw. The formation is lining up with support levels established for a potential long entry by the Crypto.IQ trading room.

We are seeing an encouraging sign that Bitcoin (BTC) may hold at support. We went outside the box and looked at the chart of Galaxy Digital (GLXY). GLXY is the premier publicly traded crypto fund.  GLXY is headed by prominent crypto figure Mike Novogratz.

At present, GLXY is perched on Fibonacci speed line support at $.93. We also noticed that GLXY may be making a rectangular base (Figure 2). If that drawing is correct, a spike to $1.25 is possible.

 Figure 2

Absent any fundamental news about GLXY, we see GLXY following Bitcoin (BTC) higher. GLXY has likely done a flush lower off possible tax loss selling. That may leave room for GLXY and Bitcoin (BTC) to move higher together

Bottom Line: As sad it is, many long-term bulls in Bitcoin (BTC) and cryptoassets have been flushed out of the market in 2018. This leaves room for buyers to enter the market in force headed into 2019.

That said, entering the long trade may be tricky. Either Bitcoin will not dip as far as bulls would like, or Bitcoin (BTC) may do a frightening flush lower to scare dip buyers. Regardless of which scenario unfolds, the Crypto.IQ trading unit will have the strategy to make the most of post CME expiration price action. Join me as I work with the ever-expanding community to be ready for the next big move.