As $BTC approaches the 108-110K range, the market will likely give the impression that everything is primed for a massive rally. Altcoins will also be hitting new highs, creating a sense of euphoria. However, this could very well be the final bull trap before the true altcoin season kicks off in early February.
I anticipate market weakness setting in 2-3 days after the inauguration. The strategy here would be to start building short positions now in the 108-110K BTC range and with altcoins at their current levels. These shorts should ideally be closed by the first week of February. After that, shift gears and go long across the board.
During these pumps, consider selling 20-30% of your spot holdings to secure profits and prepare to re-enter at lower levels. The only scenario where this strategy becomes invalid is if BTC achieves a daily and 3-day close above the 112-114K range.
For downside targets, expect BTC to drop to the 80-86K range.
