Good morning again ladies and gentlemen and welcome back to my daily analysis of Bitcoin. Today I got the 4hr pulled up after a little kiss to 19500 recently. Nice work. I can taste the new ATH and it is simply a stones throw away from where we sit currently (19200) The markets are extremely volatile as witnessed yesterday. A dump to 17600 on Nov 22 (3 days ago) to above 19450 just a few hours ago. That is incredible. The higher BTC gets the more volatile the swings. Hell if you would have just played that jump from 17600 - 19450 you would have been better off than people that waited weeks or even months for that sort of profit earlier this year. My point is get while the gettin is good. Lets take a look at what the F is going on.
Lets discuss some numbers. Like Market cap for instance. When I say market cap it is defined as "refers to the total value of all a company's shares of stock" according to Google. But we arent dealing with stocks. But the same still basically applies and the Market cap in crypto is simply the amount of money in the market at any given time. I know that is not the best definition but I tried to make it easier to understand. Bitcoin currently is enjoying the highest market cap it has ever had. Even in 2017. We hit 20k and the market cap was lower than it is right now even though we are below 20k.
Bitcoin Market Cap: $356,582,278,358
Daily Volume (24hr) $48,520,051,712 (2,528,012 BTC)
Yes that is 356 BILLION... With a B. My dad asked me how that was possible when nobody accepts BTC (like McDonalds and Walmart etc) I told him the entire black market on the internet operates largely on crypto (mainly Bitcoin from my experience but Monero and other currencies have their places) A multi billion dollar global black market thrives on this currency. Bitcoin is a revolution and the value is not only in the coins themselves. No siree. The value is in the users. Loads of people use the system and that in itself gives Bitcoin and the system value. A liquid market you can make trades confidently and expect returns. People have called BTC a scam ever since I started... But the only scam I see is the fact I wasnt alerted to the presence of Bitcoin til 2017.
Back to the charts... The 4hr 50 MA. I brought it up before and I will again. It has been extremely reliable in a sea of volatility. Right now as a trader I am looking for anything that can and may repeat itself so I can trade that. Well I only see a few reliable events. Such as the bounces off the 4hr 50 MA along with the RSI below. You can see we pretty much bounce around the line I have drawn on the RSI graph. This wont last forever but the last 2 bounces I traded with success. Ill take that quick few hundred dollars and laugh all the way to the bank.
At these levels we know to expect anything folks. Alts started taking off and that could be an indication of Bitcoin slowing down. NOT ALWAYS, but occasionally when BTC pumps alts retreat or stagnate. When that happens all eyes are on BTC (like the last few months til Saturday of this past weekend) Eventually alts got some love. It was lead by XRP blowing the roof off and going up like 150% since the pump began (I knew I should have grabbed some at 0.25 cents) when alts are in control BTC tends to move sideways. I would not bet against BTC and go short or anything. I am just putting this out there. If alts continue to do well I see BTC possibly taking a much needed break. I really hope BTC has the steam to make it to a new ATH though. But I guess that is because Im spoiled by Bitcoin.
I really enjoy analyzing Bitcoin for all of you and I wish I could tell you exactly what was going to occur next. At these levels its difficult for me to make solid predictions. Things are just wild at these levels. We have just not spent much time above 19k and now that we are here we need to soak up all the TA we can at these levels. Recognize any support and resistance you come across at these levels. We spent less than a week at these levels in 2017. The data is seriously lacking. The more time we spend here the more we learn. (then later the more we earn) See what I did there? It rhymes...
I have to go live for the course Im giving tonight. I hope Bitcoin gives me something to celebrate. 20k would be amazing. Im here with fingers crossed. I know it can happen in the blink of an eye. I want you all to be cautious though. We dont want to be screwed like I was in 2017 as a noob. I didnt realize I should sell because this was my first Fourier into trading and that was the result. I got left holding bags. Largely my fault for being stubborn and refusing to ask for help til after the fact. This go around its going to be different!!! It is already different. I removed my principle investment which is one of my most important rules. Remove the original investment when you can. You put in 100? Trade til you have 200 or 300 and remove your initial 100 investment. I think that should be the 2nd goal of each and every trader reading this. The 1st? Set a stop loss. For the love of God set a stop loss! Otherwise you may go to the rest room and when you get back all your profit is gone or even worse if you use leverage.... Liquidation! I hope you all have a great day and be cautious. Being above the clouds has its advantages but its a dangerous place to be. The fall will be a tear jerker... Make good choices my friends! WTFDIK though...
TDLR: When Bitcoin goes to 100k people will still be FOMO into it and when it dumps to 50k they will sell and call it a scam. Then when it goes to 200k they will repeat
Lets discuss some numbers. Like Market cap for instance. When I say market cap it is defined as "refers to the total value of all a company's shares of stock" according to Google. But we arent dealing with stocks. But the same still basically applies and the Market cap in crypto is simply the amount of money in the market at any given time. I know that is not the best definition but I tried to make it easier to understand. Bitcoin currently is enjoying the highest market cap it has ever had. Even in 2017. We hit 20k and the market cap was lower than it is right now even though we are below 20k.
Bitcoin Market Cap: $356,582,278,358
Daily Volume (24hr) $48,520,051,712 (2,528,012 BTC)
Yes that is 356 BILLION... With a B. My dad asked me how that was possible when nobody accepts BTC (like McDonalds and Walmart etc) I told him the entire black market on the internet operates largely on crypto (mainly Bitcoin from my experience but Monero and other currencies have their places) A multi billion dollar global black market thrives on this currency. Bitcoin is a revolution and the value is not only in the coins themselves. No siree. The value is in the users. Loads of people use the system and that in itself gives Bitcoin and the system value. A liquid market you can make trades confidently and expect returns. People have called BTC a scam ever since I started... But the only scam I see is the fact I wasnt alerted to the presence of Bitcoin til 2017.
Back to the charts... The 4hr 50 MA. I brought it up before and I will again. It has been extremely reliable in a sea of volatility. Right now as a trader I am looking for anything that can and may repeat itself so I can trade that. Well I only see a few reliable events. Such as the bounces off the 4hr 50 MA along with the RSI below. You can see we pretty much bounce around the line I have drawn on the RSI graph. This wont last forever but the last 2 bounces I traded with success. Ill take that quick few hundred dollars and laugh all the way to the bank.
At these levels we know to expect anything folks. Alts started taking off and that could be an indication of Bitcoin slowing down. NOT ALWAYS, but occasionally when BTC pumps alts retreat or stagnate. When that happens all eyes are on BTC (like the last few months til Saturday of this past weekend) Eventually alts got some love. It was lead by XRP blowing the roof off and going up like 150% since the pump began (I knew I should have grabbed some at 0.25 cents) when alts are in control BTC tends to move sideways. I would not bet against BTC and go short or anything. I am just putting this out there. If alts continue to do well I see BTC possibly taking a much needed break. I really hope BTC has the steam to make it to a new ATH though. But I guess that is because Im spoiled by Bitcoin.
I really enjoy analyzing Bitcoin for all of you and I wish I could tell you exactly what was going to occur next. At these levels its difficult for me to make solid predictions. Things are just wild at these levels. We have just not spent much time above 19k and now that we are here we need to soak up all the TA we can at these levels. Recognize any support and resistance you come across at these levels. We spent less than a week at these levels in 2017. The data is seriously lacking. The more time we spend here the more we learn. (then later the more we earn) See what I did there? It rhymes...
I have to go live for the course Im giving tonight. I hope Bitcoin gives me something to celebrate. 20k would be amazing. Im here with fingers crossed. I know it can happen in the blink of an eye. I want you all to be cautious though. We dont want to be screwed like I was in 2017 as a noob. I didnt realize I should sell because this was my first Fourier into trading and that was the result. I got left holding bags. Largely my fault for being stubborn and refusing to ask for help til after the fact. This go around its going to be different!!! It is already different. I removed my principle investment which is one of my most important rules. Remove the original investment when you can. You put in 100? Trade til you have 200 or 300 and remove your initial 100 investment. I think that should be the 2nd goal of each and every trader reading this. The 1st? Set a stop loss. For the love of God set a stop loss! Otherwise you may go to the rest room and when you get back all your profit is gone or even worse if you use leverage.... Liquidation! I hope you all have a great day and be cautious. Being above the clouds has its advantages but its a dangerous place to be. The fall will be a tear jerker... Make good choices my friends! WTFDIK though...
TDLR: When Bitcoin goes to 100k people will still be FOMO into it and when it dumps to 50k they will sell and call it a scam. Then when it goes to 200k they will repeat