Good morning again ladies and gentlemen and happy February everyone! Welcome to my daily analysis of Bitcoin. Today I have the 4hr time frame after a pretty wild January 2021... I mean we saw ATH's followed by the biggest dip in my 3 years. At least in a 24 hour period. We have found some support just above 30k and are holding steady. But can that last? I am optimistic for sure but there are also a few things that have me double checking if my stop loss is truly set. Anyways lets take a look at what is happening today on the charts.
Yesterday was a big day. Daily close and the weekly close and the monthly close all aligned like some sort of blood moon or something. No effect on the price really though. We really were flat over the weekend for the most part. There was a bit of movement though but nothing significant to write home about. The candles are at a crossroads right this second and I will explain why I feel this way.
We have reached the absolute limit of the descending resistance that saw us drop from 42k. This descending resistance has been creating lower highs (typically bearish) ever since early January. If we can muscle our way above the resistance I just mentioned the out look will be much brighter for the bulls. So technically we are still inside of the right triangle but maybe just maybe the bulls will give me a surprise today and we will break up from this mess.
Another hurdle will be the line I drew around 35k. There is support and resistance in this area. Its completely evident through recent price action. So even if we do conquer the descending resistance of the right triangle I mentioned in the paragraph above we still have the resistance at 35k to worry about. If I were to long this I would look for a good place to set a stop loss for sure. With that in mind lets look at the support just below us.
We have some good support on the 4hr including the 4hr 50 MA (orange line) along with the 4hr cloud. Being above these indicators is considered bullish. But look at the 4hr 200 MA. It is above us. That is bearish. So if we want to break up from this fine mess we got ourselves into we need to conquer the 200 MA on the 4hr. The path of least resistance seemingly is up but dont be so sure about that. Set a stop loss just in case.
I did notice a small gap between 34k and 35k (approximately) but it was filled right away. Gotta be quick to play those gaps.
New month new candles. We could very well learn more about the pending new stimulus deal in the US which could certainly add some volume to the market. With random billionaires tweets causing 15% gains overnight we must understand that anything can and usually will happen with the market. Outside interference is something no indicator can warn you about. That is why I recommend never trading without a stop loss in place. I hope you all have a great day folks! Make good choices my friends! Always remember WTFDIK???
TLDR: Filled the gap quickly this a.m. We are right on the edge of glory. If we can break this resistance above us we can breathe the free air. If not we will sink. Set a stop loss and hope for the best. We should know which way the market will head within a few hours. Cheers!
Yesterday was a big day. Daily close and the weekly close and the monthly close all aligned like some sort of blood moon or something. No effect on the price really though. We really were flat over the weekend for the most part. There was a bit of movement though but nothing significant to write home about. The candles are at a crossroads right this second and I will explain why I feel this way.
We have reached the absolute limit of the descending resistance that saw us drop from 42k. This descending resistance has been creating lower highs (typically bearish) ever since early January. If we can muscle our way above the resistance I just mentioned the out look will be much brighter for the bulls. So technically we are still inside of the right triangle but maybe just maybe the bulls will give me a surprise today and we will break up from this mess.
Another hurdle will be the line I drew around 35k. There is support and resistance in this area. Its completely evident through recent price action. So even if we do conquer the descending resistance of the right triangle I mentioned in the paragraph above we still have the resistance at 35k to worry about. If I were to long this I would look for a good place to set a stop loss for sure. With that in mind lets look at the support just below us.
We have some good support on the 4hr including the 4hr 50 MA (orange line) along with the 4hr cloud. Being above these indicators is considered bullish. But look at the 4hr 200 MA. It is above us. That is bearish. So if we want to break up from this fine mess we got ourselves into we need to conquer the 200 MA on the 4hr. The path of least resistance seemingly is up but dont be so sure about that. Set a stop loss just in case.
I did notice a small gap between 34k and 35k (approximately) but it was filled right away. Gotta be quick to play those gaps.
New month new candles. We could very well learn more about the pending new stimulus deal in the US which could certainly add some volume to the market. With random billionaires tweets causing 15% gains overnight we must understand that anything can and usually will happen with the market. Outside interference is something no indicator can warn you about. That is why I recommend never trading without a stop loss in place. I hope you all have a great day folks! Make good choices my friends! Always remember WTFDIK???
TLDR: Filled the gap quickly this a.m. We are right on the edge of glory. If we can break this resistance above us we can breathe the free air. If not we will sink. Set a stop loss and hope for the best. We should know which way the market will head within a few hours. Cheers!