Good morning everyone and welcome back to my daily look into the world of Bitcoin. Today I pulled up the daily because quite frankly it looks a bit less bearish than the 4hr today. We dropped below 18k while I was asleep and lost some support in the process. But if you are in doubt zoom out. This could be a much needed pull back. This could be a dump. As a trader you should be prepared for anything and everything that can happen. With that being said lets take a look at the charts.
The .236 is support at this time. I have noticed the .236 fib (red line) has provided support in the past so it does not surprise me that it is doing so again. Things look pretty bearish at the moment. Especially if you look at a smaller time frame. We are still in decent shape as far as the daily goes although if things stay cloudy on the 4hr time frame much longer Im afraid it will eventually migrate to the daily time frame as well.
Below us we have some major support on the daily time frame. We are above the daily cloud, the daily 50 MA and the daily 200 MA. That is all bullish. But a quick cycle to the 4hr time frame and one can see why things are bearish at the moment (short term) The 4hr isnt necessarily the best for long term predictions but its great for short term predictions and right now things look bearish on the 4hr. The 50 MA is far above us and we just lost the 4hr 200 MA . I didnt think that would happen so fast but in this market you should expect the unexpected. No doubt that the bears are out for blood. But can they stand up to the power of the bulls??
As I drink my coffee I think about this year. We went from a low of 3800 to a high of 19800 (approximately) That is a 16k rise! Even if this is a dump coming and we fall down the chart we still have plenty to be happy about. 2020 has legitimized Bitcoin in my eyes. By banks accepting it as an investment and adding it to portfolios around the globe it legitimized the f out of Bitcoin. Not to mention the fact that institutional buyers are stacking sats like the world will end tomorrow. That tells me all I need to know about Bitcoin. If these multi billion dollar companies want it, I want it. Simple as that. They would not be buying 5 figure Bitcoin if they didnt believe in it. When you think about it that way this dip is meaningless in the grand scheme.
In order for us to turn this around we need to conquer the 4hr 200 MA. It is the closest thing to resistance that I see on the chart. Its sitting around 17700 and we are flirting with it as I type. We cant seem to get above it and close that confirmation candle we all want to see. This may boost confidence and allow a turnaround to commence. But that is mostly my opinion. The market will ultimately decide the direction it will take. The next 4hr candle close will be significant IMO. If we can close above 17700 and (I know Im being greedy) if we can close another candle above the support of the 4hr 200 MA that will go a long way. If not we could very likely drop even more. Last real dump saw us drop to around 16k and a wild recovery occurred following that drop. Only time will tell if this will happen again. As December closes we may see more people taking profit. Its a tax thing. End of year is always different thanks to the tax man. Many traders will sell for tax purposes if the move suits them. This year selling should pretty much suit everyone. 17700 dollar Bitcoin is premium. But it could also be fleeting folks. So get it while the getting is good. Remember that old saying... "When you are happy and you know it, sell" Well I did sell some around 19200. But just enough to make it through Xmas and buy gifts etc. Work was awfully slow this year and they cut us to 32 hours a week so Bitcoin really bailed my butt out this holiday season. Im sure Im not the only one relying on his stash of BTC to get him out of a mess. The market is cyclical after all and what goes up eventually comes down. I hate it just as much as you guys. I could sit here and type about it all day. Let me tell ya. I have a huge mouth and I dont know when to shut up sometimes. Like now for instance. LOL. Anyways I hope you all have a great day. Dont trip about the market. Every move the market makes is an opportunity. Take advantage of it. Make good choices my friends and always remember... WTFDIK????
TLDR" The line in the sand is the 4hr 200 MA. If we can close the current 4hr candle above 17700 we will be in decent shape. Otherwise the 4hr 200 MA will be resistance. Candle closes in approx 3.5 hours.
The .236 is support at this time. I have noticed the .236 fib (red line) has provided support in the past so it does not surprise me that it is doing so again. Things look pretty bearish at the moment. Especially if you look at a smaller time frame. We are still in decent shape as far as the daily goes although if things stay cloudy on the 4hr time frame much longer Im afraid it will eventually migrate to the daily time frame as well.
Below us we have some major support on the daily time frame. We are above the daily cloud, the daily 50 MA and the daily 200 MA. That is all bullish. But a quick cycle to the 4hr time frame and one can see why things are bearish at the moment (short term) The 4hr isnt necessarily the best for long term predictions but its great for short term predictions and right now things look bearish on the 4hr. The 50 MA is far above us and we just lost the 4hr 200 MA . I didnt think that would happen so fast but in this market you should expect the unexpected. No doubt that the bears are out for blood. But can they stand up to the power of the bulls??
As I drink my coffee I think about this year. We went from a low of 3800 to a high of 19800 (approximately) That is a 16k rise! Even if this is a dump coming and we fall down the chart we still have plenty to be happy about. 2020 has legitimized Bitcoin in my eyes. By banks accepting it as an investment and adding it to portfolios around the globe it legitimized the f out of Bitcoin. Not to mention the fact that institutional buyers are stacking sats like the world will end tomorrow. That tells me all I need to know about Bitcoin. If these multi billion dollar companies want it, I want it. Simple as that. They would not be buying 5 figure Bitcoin if they didnt believe in it. When you think about it that way this dip is meaningless in the grand scheme.
In order for us to turn this around we need to conquer the 4hr 200 MA. It is the closest thing to resistance that I see on the chart. Its sitting around 17700 and we are flirting with it as I type. We cant seem to get above it and close that confirmation candle we all want to see. This may boost confidence and allow a turnaround to commence. But that is mostly my opinion. The market will ultimately decide the direction it will take. The next 4hr candle close will be significant IMO. If we can close above 17700 and (I know Im being greedy) if we can close another candle above the support of the 4hr 200 MA that will go a long way. If not we could very likely drop even more. Last real dump saw us drop to around 16k and a wild recovery occurred following that drop. Only time will tell if this will happen again. As December closes we may see more people taking profit. Its a tax thing. End of year is always different thanks to the tax man. Many traders will sell for tax purposes if the move suits them. This year selling should pretty much suit everyone. 17700 dollar Bitcoin is premium. But it could also be fleeting folks. So get it while the getting is good. Remember that old saying... "When you are happy and you know it, sell" Well I did sell some around 19200. But just enough to make it through Xmas and buy gifts etc. Work was awfully slow this year and they cut us to 32 hours a week so Bitcoin really bailed my butt out this holiday season. Im sure Im not the only one relying on his stash of BTC to get him out of a mess. The market is cyclical after all and what goes up eventually comes down. I hate it just as much as you guys. I could sit here and type about it all day. Let me tell ya. I have a huge mouth and I dont know when to shut up sometimes. Like now for instance. LOL. Anyways I hope you all have a great day. Dont trip about the market. Every move the market makes is an opportunity. Take advantage of it. Make good choices my friends and always remember... WTFDIK????
TLDR" The line in the sand is the 4hr 200 MA. If we can close the current 4hr candle above 17700 we will be in decent shape. Otherwise the 4hr 200 MA will be resistance. Candle closes in approx 3.5 hours.