Good morning ladies and gentlemen and welcome back to my daily look into the wild world of Bitcoin. Today I have the 4hr time frame pulled up after a retreat from 19k. No sweat huh? Those who have traded Bitcoin for any amount of time should be used to this sort of thing by now. What goes up does come down. But I have good news. There is still tons of support. We will touch on that more in a bit. Meanwhile the return trip from the moon has been rather smooth. No crazy drops as of yet and we could easily reverse this pattern. Especially with all the supposed institutional buying. Supply and demand dictates that a low supply equals high demand and that means higher prices. Its not rocket science. Anyways lets get technical shall we?
I almost took down the triangle we were inside of after this dip to 18775. It looks like it was broken but with a little adjustment I think it could still be valid. Although I have been wrong in the past. This consolidation at 19000 reminds me of the way the charts looked after peaking at 14k last year. We all know what happened after that. Not saying we are destined to sub 4k numbers. Im not that good. What I am saying is dont look at the dip as a bad thing (if it happens that is) Look at it as an opportunity. When the market goes up lock in profit. When it drops again use that profit to ride the next wave.
I drew a horizontal line that shows a level of support I paid little attention to til today. I was too focused on the triangle that I didnt really notice this. The wicks dip far below the line and I realize this. But Im still keeping an eye on this. I typically prefer using wicks so I drew the horizontal line along with the wicks as well. Ill let you be the judge. We are currently stuck inside the 4hr cloud and just closed a 4hr candle within the cloud. The cloud can be a good thing in a dip. It typically causes consolidation and gives the market a chance to reverse. No guarantees. Just set a stop loss if you plan to long this.
We may very well drop farther at this point. Im thinking the first support I see below us on the 4hr is 18300. Candles have respected this range in the recent past so if we drop much farther Im looking for support around here. Also below that is the bottom border of the cloud. Around 18k. It may be a kick in the teeth of the bulls to see a dip to 18k at this point but dont worry. Like Todd said, "When hasnt BTC bounced back?" That is the truth. I hope it doesnt drop that far but like I said in the past, this market is cyclical and as a result we cannot go up forever. But breaking 20k before years end would be nice.
We may even drop to the 4hr 200 MA which hasnt been seen in months. That would put us around 17500. Im just pointing this out because of the pattern and the TA I used. The left side of the right triangle was used to measure the possible drop. This isnt 100% effective but in this case I figured I would share with you. Just keep an eye on the charts and set a stop loss. Bears are awake.
I thought we could break up from this pattern but alas... Things didnt work out. Im wrong from time to time and I can attribute this call to hopium really. These patterns (equilateral triangle) can really go either way. The way the volume dropped towards the end of the pattern should have told me all I needed to know. We dropped. We had an abundance of support and still do but now we need to beat the 4hr 50 MA and the top border of the 4hr cloud before breaking that line in the sand... 19900 -20k. It will happen. Im confident we will break 20k. But very rarely is there a straight path in trading. Patience is absolutely essential at this point. I hope you all have a great day folks. Make good choices!! WTFDIK though right?
TLDR: This analysis is best read with a cup of coffee with a fifth of jack in it. Just dont drive after!
I almost took down the triangle we were inside of after this dip to 18775. It looks like it was broken but with a little adjustment I think it could still be valid. Although I have been wrong in the past. This consolidation at 19000 reminds me of the way the charts looked after peaking at 14k last year. We all know what happened after that. Not saying we are destined to sub 4k numbers. Im not that good. What I am saying is dont look at the dip as a bad thing (if it happens that is) Look at it as an opportunity. When the market goes up lock in profit. When it drops again use that profit to ride the next wave.
I drew a horizontal line that shows a level of support I paid little attention to til today. I was too focused on the triangle that I didnt really notice this. The wicks dip far below the line and I realize this. But Im still keeping an eye on this. I typically prefer using wicks so I drew the horizontal line along with the wicks as well. Ill let you be the judge. We are currently stuck inside the 4hr cloud and just closed a 4hr candle within the cloud. The cloud can be a good thing in a dip. It typically causes consolidation and gives the market a chance to reverse. No guarantees. Just set a stop loss if you plan to long this.
We may very well drop farther at this point. Im thinking the first support I see below us on the 4hr is 18300. Candles have respected this range in the recent past so if we drop much farther Im looking for support around here. Also below that is the bottom border of the cloud. Around 18k. It may be a kick in the teeth of the bulls to see a dip to 18k at this point but dont worry. Like Todd said, "When hasnt BTC bounced back?" That is the truth. I hope it doesnt drop that far but like I said in the past, this market is cyclical and as a result we cannot go up forever. But breaking 20k before years end would be nice.
We may even drop to the 4hr 200 MA which hasnt been seen in months. That would put us around 17500. Im just pointing this out because of the pattern and the TA I used. The left side of the right triangle was used to measure the possible drop. This isnt 100% effective but in this case I figured I would share with you. Just keep an eye on the charts and set a stop loss. Bears are awake.
I thought we could break up from this pattern but alas... Things didnt work out. Im wrong from time to time and I can attribute this call to hopium really. These patterns (equilateral triangle) can really go either way. The way the volume dropped towards the end of the pattern should have told me all I needed to know. We dropped. We had an abundance of support and still do but now we need to beat the 4hr 50 MA and the top border of the 4hr cloud before breaking that line in the sand... 19900 -20k. It will happen. Im confident we will break 20k. But very rarely is there a straight path in trading. Patience is absolutely essential at this point. I hope you all have a great day folks. Make good choices!! WTFDIK though right?
TLDR: This analysis is best read with a cup of coffee with a fifth of jack in it. Just dont drive after!