Good morning again ladies and gentlemen and welcome back to the Bitcoin chat. Today we are taking a look at the 4hr time frame believe it or not! LOL. But seriously we did get a rebound over the weekend which left us sitting above 19k. I know 3 months ago reaching 19k would have been monumental but now that we have spent a few weeks at that level I guess its lost its luster so to speak. Still plenty of money to be made in this market. We have a few predicaments on the chart I wanna cover today so lets wait no longer... Lets take a look at the chart.
First thing I looked at after I finally crawled my lazy butt out of bed (sorry for being late yall) was the gap. There is a pretty big CME gap below us. From 18200 all the way up to around 19k. Most gaps fill within 25 hours of forming so I am keeping an eye on this for a bit. Not every gap fills in a timely manner though. This weekends gap is almost 1k which means filling it may come in stages which means we may only fill part of the gap and fill the remainder later. Anything can happen and there isnt much science behind these gaps I must confess. But Im still trying to see if they are reliable enough for an easy trade once a week.
We escaped the clutches of the 4hr cloud and the 4hr 50 MA breaking both resistances over the weekend. That is the reason we have such a decent gap below us. Price movement over the weekend formed the gap. But being above the 50 MA and the cloud once again is bullish and the markets may take this and run with it. Or they may not. Im not clairvoyant. Im a simple chartist. I cant tell you the future. What I will do is educate you on the current situation on the chart that way you can make the most of your trades. I like the break out we saw when we beat the 50 MA and the 4hr cloud. It looks like it may just be a continuation pattern going up. Only time will tell for sure.
I see resistance above us around 19600. That will be the first real test if we go up. 19900 is also a line in the sand. But we all know 20k is the real resistance and if we can beat that we may see fomo we have not seen since 2017. Even if we did drop to fill in the gap there is still plenty to be bullish about. Like they say... When in doubt, zoom out. So check out the weekly if the 4hr is discouraging! I think there is still money to be made and as long as you exercise risk management you should come out the other side with profit. In the mean time I hope you all have a wonderful day my friends. Make good choices! And always remember... WTFDIK???
TLDR: Gap from 18100 - 19000. That is bearish. We also created what seems to be a continuation pattern which is bullish. If the 4hr 50 MA holds we should see some green candles.
First thing I looked at after I finally crawled my lazy butt out of bed (sorry for being late yall) was the gap. There is a pretty big CME gap below us. From 18200 all the way up to around 19k. Most gaps fill within 25 hours of forming so I am keeping an eye on this for a bit. Not every gap fills in a timely manner though. This weekends gap is almost 1k which means filling it may come in stages which means we may only fill part of the gap and fill the remainder later. Anything can happen and there isnt much science behind these gaps I must confess. But Im still trying to see if they are reliable enough for an easy trade once a week.
We escaped the clutches of the 4hr cloud and the 4hr 50 MA breaking both resistances over the weekend. That is the reason we have such a decent gap below us. Price movement over the weekend formed the gap. But being above the 50 MA and the cloud once again is bullish and the markets may take this and run with it. Or they may not. Im not clairvoyant. Im a simple chartist. I cant tell you the future. What I will do is educate you on the current situation on the chart that way you can make the most of your trades. I like the break out we saw when we beat the 50 MA and the 4hr cloud. It looks like it may just be a continuation pattern going up. Only time will tell for sure.
I see resistance above us around 19600. That will be the first real test if we go up. 19900 is also a line in the sand. But we all know 20k is the real resistance and if we can beat that we may see fomo we have not seen since 2017. Even if we did drop to fill in the gap there is still plenty to be bullish about. Like they say... When in doubt, zoom out. So check out the weekly if the 4hr is discouraging! I think there is still money to be made and as long as you exercise risk management you should come out the other side with profit. In the mean time I hope you all have a wonderful day my friends. Make good choices! And always remember... WTFDIK???
TLDR: Gap from 18100 - 19000. That is bearish. We also created what seems to be a continuation pattern which is bullish. If the 4hr 50 MA holds we should see some green candles.