Good morning fellow bulls and welcome back to my daily adventure into the world of Bitcoin.. Today I have the 4hr time frame pulled up after rocking the night away stuck between a rock and a hard place. More on that later. We are still above some key support and while things could be more bullish I'm not waving the white flag as of yet anyway. But being unprepared is the quickest way to ruin so prepare for anything. So you will be ready for everything. Anyways lets take a look at the charts this a.m.
First thing I want to discuss is the fact that the 4hr cloud is acting exactly as it should. It captured the candles and we have been bouncing around inside the cloud ever since. Just a few hours ago we bounced off the bottom border confirming my suspicions that this support would hold. Mainly because of my experience with the cloud but also due to the fact that the 4hr 200 MA pretty much lined up with the bottom border of the cloud strengthening it as support and giving traders confidence to enter long positions in hopes of a bounce.
The problem with a bounce is we fell below the 4hr 50 MA while descending into the depths of the 4hr cloud. With that in mind it will make the journey back up to the top of the cloud that much more difficult. Not impossible by any means. But if I were trying to long here you better believe I'm setting a decent stop loss. And yes I believe you are crazy if you dont use a stop loss.
Looking ahead I drew a possible pattern that was really outlined by the descending resistance I drew on the chart (descending yellow line) which is as I just mentioned trend resistance. Trend support happens to line up with the 4hr 200 MA which is the bottom support of the pattern in question. The pattern (triangle) looks like an equilateral triangle which means (in my experience) it could break out either way. Easy way to play a pattern like this is to go long close to the end with a stop loss set. Sounds simple but if you hit it you can see some great gains. If not the 5% - 10% you may have lost during the break down from the pattern. I would have to guess that the average loss I take in a situation like this is 5 - 10% depending on where the support below lies. But gains tend to be much more. Although I have been known to take lesser profit if I see no upside to the current situation.
So at the end of the day it could be worse. At least its Friday. I know we all wanted one more pump at 60k this week but it didnt work out. Next week is another week. Stimulus talks are still ongoing and with that in mind people may have some residual income soon. This could be a good thing for BTC in more ways than 1. The people may buy BTC with their extra money in hopes it goes up. Also when the US prinits trillions it obviously devalues the US dollar. So that could also stoke BTC to rise. Only time will tell for sure. I hope you all enjoy the weekend. Make good choices! And always remember WTFDIK????
TLDR: Bears and bulls are fighting for chart dominance. It could really go either way. Set a stop loss!
First thing I want to discuss is the fact that the 4hr cloud is acting exactly as it should. It captured the candles and we have been bouncing around inside the cloud ever since. Just a few hours ago we bounced off the bottom border confirming my suspicions that this support would hold. Mainly because of my experience with the cloud but also due to the fact that the 4hr 200 MA pretty much lined up with the bottom border of the cloud strengthening it as support and giving traders confidence to enter long positions in hopes of a bounce.
The problem with a bounce is we fell below the 4hr 50 MA while descending into the depths of the 4hr cloud. With that in mind it will make the journey back up to the top of the cloud that much more difficult. Not impossible by any means. But if I were trying to long here you better believe I'm setting a decent stop loss. And yes I believe you are crazy if you dont use a stop loss.
Looking ahead I drew a possible pattern that was really outlined by the descending resistance I drew on the chart (descending yellow line) which is as I just mentioned trend resistance. Trend support happens to line up with the 4hr 200 MA which is the bottom support of the pattern in question. The pattern (triangle) looks like an equilateral triangle which means (in my experience) it could break out either way. Easy way to play a pattern like this is to go long close to the end with a stop loss set. Sounds simple but if you hit it you can see some great gains. If not the 5% - 10% you may have lost during the break down from the pattern. I would have to guess that the average loss I take in a situation like this is 5 - 10% depending on where the support below lies. But gains tend to be much more. Although I have been known to take lesser profit if I see no upside to the current situation.
So at the end of the day it could be worse. At least its Friday. I know we all wanted one more pump at 60k this week but it didnt work out. Next week is another week. Stimulus talks are still ongoing and with that in mind people may have some residual income soon. This could be a good thing for BTC in more ways than 1. The people may buy BTC with their extra money in hopes it goes up. Also when the US prinits trillions it obviously devalues the US dollar. So that could also stoke BTC to rise. Only time will tell for sure. I hope you all enjoy the weekend. Make good choices! And always remember WTFDIK????
TLDR: Bears and bulls are fighting for chart dominance. It could really go either way. Set a stop loss!