Good morning again everyone and welcome back to my daily analysis of Bitcoin. Today I have the 4hr time frame pulled up and the indicators are really working well on this time frame so Im giving the 4hr a lot of attention til the daily indicators have a chance to catch up to the candles. Its been a pretty hectic week and the mayhem is likely not going to end anytime soon. With all that has happened so far in 2020 Bitcoin has been the one shining star. Can we push to a new ATH this year or will the bears make their appearance late in the show? Lets take a look at the chart.
Yesterday the candles dumped pretty hard after news outlets started calling the election. People were messaging me non stop asking if it was time to sell and wait. I think Bitcoin will do its thing regardless of who is president. With all the turmoil of the election being challenged and the traditional markets being closed over the weekend Monday could be the true test to see if BTC has truly decoupled from stocks. I cant promise that stocks will go down but I just have a feeling that it could happen. Could Bitcoin drop? Sure it can. But whatever happens I think the stocks and Bitcoin will ultimately recover. Regardless of who wins this fiasco.
Okay back to the technicals. I see we dropped to the 4hr 50 MA before recovering nicely. We made it back into the trend I drew yesterday on the chart topping out at trend resistance. I know at one point we were close to 14500 yesterday. Call it the election or call it a well timed retrace but the real story here is the recovery. Bitcoin has proven to us that it is resilient. I would like to say this trend suggests we break up from the descending trend but with the election still in limbo its really up in the air. I would proceed with extra caution with my trades for the rest of the year minimum.
If we remain in the trend I threw on the chart yesterday we may end up with a gap above us. The weekly candles looks promising. We made it to 16k plus this week and that is quite an accomplishment not seen in nearly 3 years. A retrace was likely due. Perhaps that is all we saw yesterday and the bulls are just relaxing this weekend. One thing I will bring up is each time we approach the mid way point on the RSI we bounce on the chart. Happened again after I mentioned this yesterday. Nothing lasts forever but you could have made decent money just trading this strategy this week. Be careful with your trades everyone. Things are going to be pretty unpredictable over the next month or 2. We may even see some wild swings. Stay smart and make good choices! WTFDIK??
TLDR: We recovered from the dip yesterday to 14500. Back into the trend I threw on the chart yesterday. Weekly close looks strong. Election still in limbo. Trade at your own risk
Yesterday the candles dumped pretty hard after news outlets started calling the election. People were messaging me non stop asking if it was time to sell and wait. I think Bitcoin will do its thing regardless of who is president. With all the turmoil of the election being challenged and the traditional markets being closed over the weekend Monday could be the true test to see if BTC has truly decoupled from stocks. I cant promise that stocks will go down but I just have a feeling that it could happen. Could Bitcoin drop? Sure it can. But whatever happens I think the stocks and Bitcoin will ultimately recover. Regardless of who wins this fiasco.
Okay back to the technicals. I see we dropped to the 4hr 50 MA before recovering nicely. We made it back into the trend I drew yesterday on the chart topping out at trend resistance. I know at one point we were close to 14500 yesterday. Call it the election or call it a well timed retrace but the real story here is the recovery. Bitcoin has proven to us that it is resilient. I would like to say this trend suggests we break up from the descending trend but with the election still in limbo its really up in the air. I would proceed with extra caution with my trades for the rest of the year minimum.
If we remain in the trend I threw on the chart yesterday we may end up with a gap above us. The weekly candles looks promising. We made it to 16k plus this week and that is quite an accomplishment not seen in nearly 3 years. A retrace was likely due. Perhaps that is all we saw yesterday and the bulls are just relaxing this weekend. One thing I will bring up is each time we approach the mid way point on the RSI we bounce on the chart. Happened again after I mentioned this yesterday. Nothing lasts forever but you could have made decent money just trading this strategy this week. Be careful with your trades everyone. Things are going to be pretty unpredictable over the next month or 2. We may even see some wild swings. Stay smart and make good choices! WTFDIK??
TLDR: We recovered from the dip yesterday to 14500. Back into the trend I threw on the chart yesterday. Weekly close looks strong. Election still in limbo. Trade at your own risk