Good morning bears! I have missed you so! NOT!!! Anyways welcome to my daily look into the world of Bitcoin. Today I have the 4hr time frame pulled up after a rough Sunday that leaked into Monday. Is this the start of the bear run? I got a million messages yesterday and my answer will be posted here. Maybe... Nobody is clairvoyant. I make my trades based on the info in front of me and the info I see shows that we were due for a dip. How far down we go is totally up to the bulls and bears. Now you know why I always say to set a stop loss huh... Anyways lets take a look at what is going on today.
We dropped from the fragile support we were carving up above 40k. Nearly dropping 10k from previous highs. I know this may be discouraging to those that bought near the top but that will be a lesson for you. I did the same exact thing in 2017 and I learned my lesson then. I did great this run. If you learn from your mistakes you can also take advantage of the next run. After all when hasnt BTC bounced back?
As we drop through the weak support we fell to the 4hr cloud. I thought we may find some much needed support upon the cloud but we have since dropped into the cloud. That could mean we move sideways a bit. I would say if we can recover to above the cloud we may have a chance to possibly reverse some of the bear candles. But only time will tell for sure. If you plan to go long to catch a possible pump you need to use risk management and set a stop loss. Its far to risky when you know the bears are awake from their hibernation.
I have a bit of good news. We have a bullish gap above us. From 39200 - 40500 approximately. If we were to jump to fill that gap I would be surprised. I know I have said in the past the gaps tend to fill rather quickly but we have dropped quite a bit since the gap formed this morning. Long story short we may not fill this new gap right away. I would love to see us jump to fill it but the writing is seemingly on the wall folks. The bears are now awakened and if the bulls dont put on a show today we could drop to some of the support below the cloud.
30600 looks like it may provide support but I see a more likely landing spot of 28450 and if that were to fail 24400 looks like it could provide support. I know many of you are looking at this analysis like I am nuts right now but swings like this in Bitcoin are quite common believe it or not. It doesnt just go up forever. People take profit and that is what we are seeing now. Fomo profit taking. People exiting positions because they bought over 40k and they dont want to lose any more than absolutely necessary. Do I think Bitcoin will recover. Absolutely. When will we see 40k again? Could be next week. Could be next halving (3 + years) I am not Madame cleo so I cannot tell you for sure. What I can say is if you stick to my advice and had a stop loss set before this mess you should be sitting pretty at the moment.
I know my stop tripped and I sold around 38750. So I am out for now. I am looking for another point of reentry but for the moment I am being extra cautious. I got plenty of profit from this run and I dont want to squander it buying the dip if its just going to dip further. When I feel comfortable with support I will reenter and play the market again. If I were you and I wanted to reenter the first thing I would do is set a stop loss. Just in case the bears are not done. A ray of sunshine for you all before I go... We have exited the top of the 4hr cloud. It may be fleeting. We will have to wait to see if the cloud becomes the support we all hope for. If not things may get ugly folks. I hope you all have a great day and remember that dips like this arent the end of the world. These are huge opportunities. Just like that dip last March. I loaded up while noobs were exiting positions at a loss. The BTC I loaded up with went up nearly 10X before I sold. Not too shabby... Thank you BTC! Please make good choices folks and always remember WTFDIK???
TLDR: This is not financial advice. This is my opinion on the current market. Take it or leave it. Oh, and the bears are awake from their months of hibernation... Oh, and set a stop loss.
We dropped from the fragile support we were carving up above 40k. Nearly dropping 10k from previous highs. I know this may be discouraging to those that bought near the top but that will be a lesson for you. I did the same exact thing in 2017 and I learned my lesson then. I did great this run. If you learn from your mistakes you can also take advantage of the next run. After all when hasnt BTC bounced back?
As we drop through the weak support we fell to the 4hr cloud. I thought we may find some much needed support upon the cloud but we have since dropped into the cloud. That could mean we move sideways a bit. I would say if we can recover to above the cloud we may have a chance to possibly reverse some of the bear candles. But only time will tell for sure. If you plan to go long to catch a possible pump you need to use risk management and set a stop loss. Its far to risky when you know the bears are awake from their hibernation.
I have a bit of good news. We have a bullish gap above us. From 39200 - 40500 approximately. If we were to jump to fill that gap I would be surprised. I know I have said in the past the gaps tend to fill rather quickly but we have dropped quite a bit since the gap formed this morning. Long story short we may not fill this new gap right away. I would love to see us jump to fill it but the writing is seemingly on the wall folks. The bears are now awakened and if the bulls dont put on a show today we could drop to some of the support below the cloud.
30600 looks like it may provide support but I see a more likely landing spot of 28450 and if that were to fail 24400 looks like it could provide support. I know many of you are looking at this analysis like I am nuts right now but swings like this in Bitcoin are quite common believe it or not. It doesnt just go up forever. People take profit and that is what we are seeing now. Fomo profit taking. People exiting positions because they bought over 40k and they dont want to lose any more than absolutely necessary. Do I think Bitcoin will recover. Absolutely. When will we see 40k again? Could be next week. Could be next halving (3 + years) I am not Madame cleo so I cannot tell you for sure. What I can say is if you stick to my advice and had a stop loss set before this mess you should be sitting pretty at the moment.
I know my stop tripped and I sold around 38750. So I am out for now. I am looking for another point of reentry but for the moment I am being extra cautious. I got plenty of profit from this run and I dont want to squander it buying the dip if its just going to dip further. When I feel comfortable with support I will reenter and play the market again. If I were you and I wanted to reenter the first thing I would do is set a stop loss. Just in case the bears are not done. A ray of sunshine for you all before I go... We have exited the top of the 4hr cloud. It may be fleeting. We will have to wait to see if the cloud becomes the support we all hope for. If not things may get ugly folks. I hope you all have a great day and remember that dips like this arent the end of the world. These are huge opportunities. Just like that dip last March. I loaded up while noobs were exiting positions at a loss. The BTC I loaded up with went up nearly 10X before I sold. Not too shabby... Thank you BTC! Please make good choices folks and always remember WTFDIK???
TLDR: This is not financial advice. This is my opinion on the current market. Take it or leave it. Oh, and the bears are awake from their months of hibernation... Oh, and set a stop loss.