Good morning again ladies and gentlemen and welcome back to my daily look into the world of Bitcoin. I have the 4hr time frame pulled up after a Monday that certainly could have been worse. The consolidation has been real and while the rocket ship like climb up the charts seems to have subsided. No worries. Some traders say we are just refueling. I will let you be the judge. Meanwhile lets take a look at what is going on this morning with the charts.
I mentioned this yesterday in my analysis but I thought it was worth bringing up again. The MACD is bullish at the moment. No trader should only rely on MACD alone but it looks good on the 4hr for sure. I rarely use the MACD but I made a video for the course I have recently and decided to let the followers see the tool in action. Its quite simple yet effective. Now you need to remember the MACD is different depending on which time frame you are looking at so dont forget that. (Same for many indicators)
We muscled our way above the 4hr 50 MA (orange line) once again so it is now support again. It may be fleeting as we approach the top of the triangle pattern drawn on the chart. If we were to test the top border of the triangle we would be limited to a $38700 top. Simply due the descending nature of the top border. Lower highs and higher lows. People are asking me how to play this pattern and if its going to break up or down. Im not 100% certain which way the break out will materialize.
I am going to play this triangle by ear. My strategy is simple for a pattern like this.. Go long when I think a break out is imminent. Set a good stop loss and if we break up I get profit. If we break down I go to stable coin and re-buy when the dust settles. Either way I win. That strategy has paid off for me numerous times. And its not even like you need to be a rocket scientist to do this. Its simple.
We have been flirting with the 4hr 50 MA quite a bit lately and officially put the indicator below our feet. So now the 4hr 50 MA should provide at least some support. It may fail like it has the last few times but not before it offers a few possible trades. As with any trade setting a stop loss is important. When we conqured the 4hr 50 MA we also beat the 4hr cloud so there is plenty to be bullish about. But time will tell if that conjures a break out...
Learning to read a chart and understand support and resistance is important. But so is learning risk management and risk tolerance. If you are sweating because you think you are going to lose too much profit you are over extended in your investment. I know there are many noobs in this market now and if you want any advice that will help you it is to have patience. Dont resort to knee jerk reactions and sell in a panic. I know its easy to do. I know many that sold on the dip from 42k down to 30k. A simple bout of patience would have saved you from losing up to 25% of your bag. I know it sucks to have to go through that but those that panicked and sold need to take this as a lesson and learn from it. If you dont it will be the same old song and dance come next run.
Just dropping a few pieces of advice in the analysis this a.m. I hope you guys and gals learn something from my analysis. Even if you are just here to read it I appreciate your patronage. I have been doing this now for roughly 2 years and I am still enjoying sharing my ideas with each and everyone of you. I really appreciate all the support. My YT channel is growing fast and I plan on growing it in 2021. Im not 100% sure of the end goal but I am confident it will benefit me. Unless we break from the triangle which seems a little premature to me we should stay below 38700. The bottom border of the triangle shows a current bottom of around 33k give or take a few hundred bucks. We have a lot of extenuating circumstances that cant be shown necessarily on the chart. More stimulus money is almost certain from the sounds of it so get ready for USD printing and people having disposable income they may or may not spend on BTC. Either way it should make for an exciting 2021. Oh how I love the sound of my money inflating in the morning. It goes great with my coffee. I hope you all have a great day folks. Make good choices with your money. Risk management is key! But then again WTFDIK???
TLDR: Broke above the 4hr 50 MA and the 4hr cloud (bullish) but we are still within the big triangle. That makes the likely tip of this pump around 38700. (no promises that we make it that high but that is the current top IMO, but it will be a descending number thanks to the descending nature of the top border of the triangle. We should break from this triangle within the next 2 weeks.
I mentioned this yesterday in my analysis but I thought it was worth bringing up again. The MACD is bullish at the moment. No trader should only rely on MACD alone but it looks good on the 4hr for sure. I rarely use the MACD but I made a video for the course I have recently and decided to let the followers see the tool in action. Its quite simple yet effective. Now you need to remember the MACD is different depending on which time frame you are looking at so dont forget that. (Same for many indicators)
We muscled our way above the 4hr 50 MA (orange line) once again so it is now support again. It may be fleeting as we approach the top of the triangle pattern drawn on the chart. If we were to test the top border of the triangle we would be limited to a $38700 top. Simply due the descending nature of the top border. Lower highs and higher lows. People are asking me how to play this pattern and if its going to break up or down. Im not 100% certain which way the break out will materialize.
I am going to play this triangle by ear. My strategy is simple for a pattern like this.. Go long when I think a break out is imminent. Set a good stop loss and if we break up I get profit. If we break down I go to stable coin and re-buy when the dust settles. Either way I win. That strategy has paid off for me numerous times. And its not even like you need to be a rocket scientist to do this. Its simple.
We have been flirting with the 4hr 50 MA quite a bit lately and officially put the indicator below our feet. So now the 4hr 50 MA should provide at least some support. It may fail like it has the last few times but not before it offers a few possible trades. As with any trade setting a stop loss is important. When we conqured the 4hr 50 MA we also beat the 4hr cloud so there is plenty to be bullish about. But time will tell if that conjures a break out...
Learning to read a chart and understand support and resistance is important. But so is learning risk management and risk tolerance. If you are sweating because you think you are going to lose too much profit you are over extended in your investment. I know there are many noobs in this market now and if you want any advice that will help you it is to have patience. Dont resort to knee jerk reactions and sell in a panic. I know its easy to do. I know many that sold on the dip from 42k down to 30k. A simple bout of patience would have saved you from losing up to 25% of your bag. I know it sucks to have to go through that but those that panicked and sold need to take this as a lesson and learn from it. If you dont it will be the same old song and dance come next run.
Just dropping a few pieces of advice in the analysis this a.m. I hope you guys and gals learn something from my analysis. Even if you are just here to read it I appreciate your patronage. I have been doing this now for roughly 2 years and I am still enjoying sharing my ideas with each and everyone of you. I really appreciate all the support. My YT channel is growing fast and I plan on growing it in 2021. Im not 100% sure of the end goal but I am confident it will benefit me. Unless we break from the triangle which seems a little premature to me we should stay below 38700. The bottom border of the triangle shows a current bottom of around 33k give or take a few hundred bucks. We have a lot of extenuating circumstances that cant be shown necessarily on the chart. More stimulus money is almost certain from the sounds of it so get ready for USD printing and people having disposable income they may or may not spend on BTC. Either way it should make for an exciting 2021. Oh how I love the sound of my money inflating in the morning. It goes great with my coffee. I hope you all have a great day folks. Make good choices with your money. Risk management is key! But then again WTFDIK???
TLDR: Broke above the 4hr 50 MA and the 4hr cloud (bullish) but we are still within the big triangle. That makes the likely tip of this pump around 38700. (no promises that we make it that high but that is the current top IMO, but it will be a descending number thanks to the descending nature of the top border of the triangle. We should break from this triangle within the next 2 weeks.