Good morning again ladies and gentlemen and welcome back to my daily look into the world of Bitcoin. Today I have the 4hr time frame pulled up after a pretty bullish weekend. It sure came tumbling down this a.m. though. It was expected and I will explain why. The bears have let us know that beating 60k for good may not be as easy as it looks. Lets take a look at the charts this morning and see what is going on.
First of all I want to cover the drop this morning. This drop can be attributed to the 2000 dollar + gap that was left on the chart this weekend. We pumped from 57k to 61k over the weekend creating a higher high in the process. Nice work bulls! I hope you all got your profit out because the rise over the weekend created a bearish gap. I mentioned it yesterday. We already filled the gap in less than 24 hours after forming and that happens more often than not. One look at the chart and anyone can see we dropped significantly this morning, filling in the gap formed over the weekend. So the drop this morning sure had plenty of warning signs. I hope you noticed them.
The drop is all the community will talk about today, but lets discuss support. We fell to the 4hr 50 MA and even wicked pretty deep below the 4hr 50 MA but ultimately recovered above the 4hr 50 MA. This is how I have been gauging the market lately. If we are above the 4hr 50 MA I am bullish (short term) and if we are below the 4hr 50 MA I am bearish (short term) We have seen a nice bounce off the 4hr 50 MA but there is resistance above us around 58350. That was the previous ATH and I expect there to be some sort of resistance in the area.
This analysis has been mostly about gaps and that is okay. Gaps are reliable and make for easy trades to start off your week (usually). Occasionally the gaps dont fill like they did today. But more often than not they do fill within 24 hours. If you can learn to trade these gaps you can make a lot of money. Even after the significant drop we have witnessed this a.m. Im not bearish quite yet. Lets see if the 4hr 50 MA can hold before I rush to any conclusions. I hope you all enjoy your Monday. Make good choices folks. And always remember WTFDIK???
TLDR: We pumped over the weekend creating a bearish gap which we filled this morning. We are sitting on 55k support. If we lose the 4hr 50 MA I will be a bit more bearish. At least short term.
First of all I want to cover the drop this morning. This drop can be attributed to the 2000 dollar + gap that was left on the chart this weekend. We pumped from 57k to 61k over the weekend creating a higher high in the process. Nice work bulls! I hope you all got your profit out because the rise over the weekend created a bearish gap. I mentioned it yesterday. We already filled the gap in less than 24 hours after forming and that happens more often than not. One look at the chart and anyone can see we dropped significantly this morning, filling in the gap formed over the weekend. So the drop this morning sure had plenty of warning signs. I hope you noticed them.
The drop is all the community will talk about today, but lets discuss support. We fell to the 4hr 50 MA and even wicked pretty deep below the 4hr 50 MA but ultimately recovered above the 4hr 50 MA. This is how I have been gauging the market lately. If we are above the 4hr 50 MA I am bullish (short term) and if we are below the 4hr 50 MA I am bearish (short term) We have seen a nice bounce off the 4hr 50 MA but there is resistance above us around 58350. That was the previous ATH and I expect there to be some sort of resistance in the area.
This analysis has been mostly about gaps and that is okay. Gaps are reliable and make for easy trades to start off your week (usually). Occasionally the gaps dont fill like they did today. But more often than not they do fill within 24 hours. If you can learn to trade these gaps you can make a lot of money. Even after the significant drop we have witnessed this a.m. Im not bearish quite yet. Lets see if the 4hr 50 MA can hold before I rush to any conclusions. I hope you all enjoy your Monday. Make good choices folks. And always remember WTFDIK???
TLDR: We pumped over the weekend creating a bearish gap which we filled this morning. We are sitting on 55k support. If we lose the 4hr 50 MA I will be a bit more bearish. At least short term.