Good morning ladies and gentlemen and welcome back to my daily look at the exciting world of Bitcoin. Today I have the 4hr time frame pulled up after some serious pump. We eclipsed the previous yearly high of 14200 (give or take) and have crushed some serious resistance in the process. The chart looks prime to go even further and if support holds we could definitely see ourselves in territory we havent seen in ages. Lets take a look at the charts and see what is really going on...
First thing I noticed was we have not been this high on the chart since 2018 (January) This is significant. Being in basically uncharted territory on the chart makes it a bit difficult to find resistance and support. But that doesnt mean its impossible. Just pay a bit if attention. I drew a trend line which is ascending on the chart and it shows us being rejected by trend resistance. Like clockwork. If you are a trader and you played that pump you would have walked away with a good chunk of profit. Learning to play trends like this can result in serious profit.
We made it all the way to 14740 and I could not be more proud of the bulls. The election is all but over and I expected to see blood in the streets but that just goes to show you that I am just as green as a lot of you when it comes to TA during an election. I have been paying attention though and next election I should have a better idea of the possible outcomes. Just because there is an initial pump happening as I type dont let your guard down folks. Capital gains taxes will be rising no matter how much income you get. Therefore I see people likely selling Bitcoin in December in an effort to pay current tax rates over the new tax rates which will likely become reality on January 1st. Boy do I despise taxes.
Im going to step off my political soap box for a minute and get back to the charts... There is plenty of support below us. That could be adding fuel to the current pump. When traders see that there is loads of support it is promising to them and they assume they have a lot better chance of doing well in trades like that. And if you ask me the path of least resistance is up. At least according to my trading set up it is. We have gaps below us but for now I would ignore them. Bitcoin sure seems to be ignoring them. Some gaps fill within hours of their creation (in fact I would say 95% of gaps disappear within the first 24 hours of forming) but there are some that remain for even years.
One more quick thing. I hardly bring up the bollinger bands at all anymore. They arent the easiest indicator to see due to the fact they are dark blue bands on a black back drop. But if you look at them you see the got pretty tight before the pump to 14800. That is a clear indication that volatility is coming. The thing about bollinger bands is they help you see incoming volatility but they dont necessarily tell you which way that volatility will take us. I wish it was that easy. You really only have 2 options. Pump or dump. My strategy when I play a trade like this is go long. Set a stop loss. Let the chips fall where they may. Simple yet extremely effective.
If you are trading you need to be careful for the remainder of the year. I cant say for sure but I do think at one point people will exit positions in order to avoid paying higher tax rates that will surely be in the equation next year. I know I am going to be paying attention to see if this does become a reality. But in the mean time lets see how high BTC can get! 20K? 30K? What do you think? I hope you all have a wonderful day. Make good choices folks! WTFDIK right?
TLDR: 14800 new 1 year high. We eclipsed last years high as well. I would set a stop loss but I certainly would not short BTC. Even if it does drop Im not going to bet against the king at this point.
First thing I noticed was we have not been this high on the chart since 2018 (January) This is significant. Being in basically uncharted territory on the chart makes it a bit difficult to find resistance and support. But that doesnt mean its impossible. Just pay a bit if attention. I drew a trend line which is ascending on the chart and it shows us being rejected by trend resistance. Like clockwork. If you are a trader and you played that pump you would have walked away with a good chunk of profit. Learning to play trends like this can result in serious profit.
We made it all the way to 14740 and I could not be more proud of the bulls. The election is all but over and I expected to see blood in the streets but that just goes to show you that I am just as green as a lot of you when it comes to TA during an election. I have been paying attention though and next election I should have a better idea of the possible outcomes. Just because there is an initial pump happening as I type dont let your guard down folks. Capital gains taxes will be rising no matter how much income you get. Therefore I see people likely selling Bitcoin in December in an effort to pay current tax rates over the new tax rates which will likely become reality on January 1st. Boy do I despise taxes.
Im going to step off my political soap box for a minute and get back to the charts... There is plenty of support below us. That could be adding fuel to the current pump. When traders see that there is loads of support it is promising to them and they assume they have a lot better chance of doing well in trades like that. And if you ask me the path of least resistance is up. At least according to my trading set up it is. We have gaps below us but for now I would ignore them. Bitcoin sure seems to be ignoring them. Some gaps fill within hours of their creation (in fact I would say 95% of gaps disappear within the first 24 hours of forming) but there are some that remain for even years.
One more quick thing. I hardly bring up the bollinger bands at all anymore. They arent the easiest indicator to see due to the fact they are dark blue bands on a black back drop. But if you look at them you see the got pretty tight before the pump to 14800. That is a clear indication that volatility is coming. The thing about bollinger bands is they help you see incoming volatility but they dont necessarily tell you which way that volatility will take us. I wish it was that easy. You really only have 2 options. Pump or dump. My strategy when I play a trade like this is go long. Set a stop loss. Let the chips fall where they may. Simple yet extremely effective.
If you are trading you need to be careful for the remainder of the year. I cant say for sure but I do think at one point people will exit positions in order to avoid paying higher tax rates that will surely be in the equation next year. I know I am going to be paying attention to see if this does become a reality. But in the mean time lets see how high BTC can get! 20K? 30K? What do you think? I hope you all have a wonderful day. Make good choices folks! WTFDIK right?
TLDR: 14800 new 1 year high. We eclipsed last years high as well. I would set a stop loss but I certainly would not short BTC. Even if it does drop Im not going to bet against the king at this point.