Good morning again ladies and gentlemen and welcome back to the Bitcoin analysis show! This is your host Tim Pace and I have a doozy for you guys and gals this morning! Bitcoin did well yesterday in general terms of bull vs bear and we held an important line of support. Can the bullish events continue and multiply into a snowball effect on the chart? Lets take a closer look at the charts this morning and see what the deal is.
We held the 4hr 200 MA (I know this is the daily but you all know I religiously use the 4hr chart. This was important. I was really watching to see if we could hold the line and we did. Now that we are not drowning in underneath the 4hr 200 MA we can breathe the fresh air and the bulls have every opportunity to turn this into a higher high.
A higher high. That is what everyone wants right? From traders to long term investors. We all desire green candles unless you have short open. In order to create that higher high we have to beat Elons candle and it would be ideal for us to close a few candles above the previous high of $38,531. If we can do this we can possibly even retake 40k. But I will play that by ear of course.
The daily time frame is starting to catch up to my trading set up. That is if we continue on the present course (30k-40k) This consolidation between 30k and 40k is crazy. 1 year ago a 10k drop would have been around 90% or more of the entire market cap and price of BTC for that matter. The last 10k drop was only 25% of the price. I remember Todd told me that the higher in price BTC the bigger the swings will be. So far it was accurate. 15% at 10k is only 1500 dollars. 15% at 40k is 6,000 dollars.
30k is support along with 35k. I know it seems to easy but I believe that once we eclipsed 20k there was not much in terms of data available. So it wasnt easy for traders to plan ahead after the break. We just dont have as much data above 20k as we do below 20k. With that in mind I believe traders were using round numbers like 30k and 35k on the way up. Its just my assumption but due to lack of data traders just decided to carve out their own support and resistance and the results are evident. I believe the line between bull and bear is currently the daily 50 MA which we have been above for almost 4 months at this point.
As the bulls sneak back up the chart Im curious to see how far they can take us. If you are longing this set a stop loss. If you have trouble setting a stop loss take a look at my YT channel for some free content. One of the videos explains how I go about setting a stop loss. Its very important. With many outside forces playing a role in the future of Bitcoin the market is really intriguing and the possibilities are infinite. Visa may be throwing their hats into the game with crypto purchases. Institutions are still loading up. Another round of stimulus checks are being debated. This could all be bullish for BTC. On the other hand I hear India is thinking of banning all crypto except a national coin. That is a bad move. But oh well. More BTC for me huh? Some bullish news and some bearish. So my recommendation is to set a stop loss. Set it and forget it! Not really. Dont forget it! I hope you all have a great day. Make good choices and always remember WTFDIK????
TLDR: As long as we remain above the daily 50 MA I am still bullish. We held the 4hr 200 MA and we are seeing a nice bounce this a.m. Set a stop loss and trade with caution.
We held the 4hr 200 MA (I know this is the daily but you all know I religiously use the 4hr chart. This was important. I was really watching to see if we could hold the line and we did. Now that we are not drowning in underneath the 4hr 200 MA we can breathe the fresh air and the bulls have every opportunity to turn this into a higher high.
A higher high. That is what everyone wants right? From traders to long term investors. We all desire green candles unless you have short open. In order to create that higher high we have to beat Elons candle and it would be ideal for us to close a few candles above the previous high of $38,531. If we can do this we can possibly even retake 40k. But I will play that by ear of course.
The daily time frame is starting to catch up to my trading set up. That is if we continue on the present course (30k-40k) This consolidation between 30k and 40k is crazy. 1 year ago a 10k drop would have been around 90% or more of the entire market cap and price of BTC for that matter. The last 10k drop was only 25% of the price. I remember Todd told me that the higher in price BTC the bigger the swings will be. So far it was accurate. 15% at 10k is only 1500 dollars. 15% at 40k is 6,000 dollars.
30k is support along with 35k. I know it seems to easy but I believe that once we eclipsed 20k there was not much in terms of data available. So it wasnt easy for traders to plan ahead after the break. We just dont have as much data above 20k as we do below 20k. With that in mind I believe traders were using round numbers like 30k and 35k on the way up. Its just my assumption but due to lack of data traders just decided to carve out their own support and resistance and the results are evident. I believe the line between bull and bear is currently the daily 50 MA which we have been above for almost 4 months at this point.
As the bulls sneak back up the chart Im curious to see how far they can take us. If you are longing this set a stop loss. If you have trouble setting a stop loss take a look at my YT channel for some free content. One of the videos explains how I go about setting a stop loss. Its very important. With many outside forces playing a role in the future of Bitcoin the market is really intriguing and the possibilities are infinite. Visa may be throwing their hats into the game with crypto purchases. Institutions are still loading up. Another round of stimulus checks are being debated. This could all be bullish for BTC. On the other hand I hear India is thinking of banning all crypto except a national coin. That is a bad move. But oh well. More BTC for me huh? Some bullish news and some bearish. So my recommendation is to set a stop loss. Set it and forget it! Not really. Dont forget it! I hope you all have a great day. Make good choices and always remember WTFDIK????
TLDR: As long as we remain above the daily 50 MA I am still bullish. We held the 4hr 200 MA and we are seeing a nice bounce this a.m. Set a stop loss and trade with caution.