Good morning again ladies and gentlemen and welcome back to my daily analysis of Bitcoin. Today I have the 4hr time frame pulled up once again and I can see we are starting this Tuesday off on a decent note. We have our collective heads above 23k and holding steady for now. I guess people are dumping those Xmas bonuses into BTC LOL. While that may or may not be the case the fact remains... We are still above 20k. But can we close up 2020 on a high note? Lets discuss.
22400 - 22500 seems to be support at this time. Ever since we got to this level we have maintained it for the most part, wicking out one time recently. I am seeing that the 4hr 50 MA (orange line) is creeping up below the candles. This should give traders confidence as the orange line (4hr 50 MA) acts as support. When you see an abundance of support it gives traders more confidence to go long with an expectation of getting a return. I know I am more apt to go long when I see support built up below the candles. Speaking of support lets take a look at the 4hr cloud.
The 4hr cloud is also right below us. I would go as far to say that the 4hr 50 MA (orange line) I mentioned earlier will merge with the top border of the 4hr cloud. This should be stronger support. When supports like the 50 MA and the cloud merge it gives traders confidence as well and that is what a bull market is all about. Traders having confidence to go long. With support holding around 22500 there is no shortage of support at these current levels and that should be good news to you bulls out there.
As Christmas approaches I am wondering if the bulls are done for the year. I know the stimulus has seemingly passed which offers each American 600 dollars. This could be good news for Bitcoin. Even if people dont throw that 600 dollars into the mix they may instead use that 600 dollars to pay tax obligations for this year. It would stop traders from selling simply for tax purposes. Of course this is purely speculation. With institutions buying up BTC by the fistful the future is definitely bright for Bitcoin.
We have many factors that were not in the mix back in 2017. Institutions were not really interested in Bitcoin back in 2017. Alts really took a big chunk of the pump back in 2017 as well. Its known affectionately in the crypto groups Im in as "Alt Season". This 2020 pump is different. The halving is fueling this 2020 pump. Along with the fact we saw a huge dip in March which resulted in a massive influx of volume. We broke the 2.5 year trend line around 6 months ago. Institutions are now interested in Bitcoin and alts are not popping like they did in 2017. This pump is absolutely different than the pump in 2017.
Im expecting a retrace. It may or may not occur before years end. Im an analyst but I am not clairvoyant. Unfortunately. What I do know is risk management is key if you want to play the market at these levels. 10% - 20% swings are not uncommon, either way. Which is one reason I always recommend a stop loss. Its just smart trading. Even if we do dump 2020 has been a phenomenal year for Bitcoin. With institutions buying up BTC can 2021 be even better? We will know in about 9 days folks. I will see you guys and gals tomorrow. Please make good choices my friends. And always remember... WTFDIK???
TLDR: Last chance to vote for the silver BTC in Crypto Coin Trader (Facebook group) If you want to participate make sure you vote by midnight tonight (CST) The winner will be announced Xmas day (noon CST) price will be pulled from Coinbase. Winner gets a .999 silver BTC and 100 USD worth of Bitcoin as well. Happy holidays everyone!
22400 - 22500 seems to be support at this time. Ever since we got to this level we have maintained it for the most part, wicking out one time recently. I am seeing that the 4hr 50 MA (orange line) is creeping up below the candles. This should give traders confidence as the orange line (4hr 50 MA) acts as support. When you see an abundance of support it gives traders more confidence to go long with an expectation of getting a return. I know I am more apt to go long when I see support built up below the candles. Speaking of support lets take a look at the 4hr cloud.
The 4hr cloud is also right below us. I would go as far to say that the 4hr 50 MA (orange line) I mentioned earlier will merge with the top border of the 4hr cloud. This should be stronger support. When supports like the 50 MA and the cloud merge it gives traders confidence as well and that is what a bull market is all about. Traders having confidence to go long. With support holding around 22500 there is no shortage of support at these current levels and that should be good news to you bulls out there.
As Christmas approaches I am wondering if the bulls are done for the year. I know the stimulus has seemingly passed which offers each American 600 dollars. This could be good news for Bitcoin. Even if people dont throw that 600 dollars into the mix they may instead use that 600 dollars to pay tax obligations for this year. It would stop traders from selling simply for tax purposes. Of course this is purely speculation. With institutions buying up BTC by the fistful the future is definitely bright for Bitcoin.
We have many factors that were not in the mix back in 2017. Institutions were not really interested in Bitcoin back in 2017. Alts really took a big chunk of the pump back in 2017 as well. Its known affectionately in the crypto groups Im in as "Alt Season". This 2020 pump is different. The halving is fueling this 2020 pump. Along with the fact we saw a huge dip in March which resulted in a massive influx of volume. We broke the 2.5 year trend line around 6 months ago. Institutions are now interested in Bitcoin and alts are not popping like they did in 2017. This pump is absolutely different than the pump in 2017.
Im expecting a retrace. It may or may not occur before years end. Im an analyst but I am not clairvoyant. Unfortunately. What I do know is risk management is key if you want to play the market at these levels. 10% - 20% swings are not uncommon, either way. Which is one reason I always recommend a stop loss. Its just smart trading. Even if we do dump 2020 has been a phenomenal year for Bitcoin. With institutions buying up BTC can 2021 be even better? We will know in about 9 days folks. I will see you guys and gals tomorrow. Please make good choices my friends. And always remember... WTFDIK???
TLDR: Last chance to vote for the silver BTC in Crypto Coin Trader (Facebook group) If you want to participate make sure you vote by midnight tonight (CST) The winner will be announced Xmas day (noon CST) price will be pulled from Coinbase. Winner gets a .999 silver BTC and 100 USD worth of Bitcoin as well. Happy holidays everyone!