Good morning again ladies and gentlemen and welcome back to my daily look into the King of the charts... Bitcoin. Today I have the 1hr time frame pulled up mainly because its been likely months since I have shared a 1hr chart. There are reasons for that. I appreciate the larger time frames and base most of my trades off of the 4hr and daily. But the hourly is helpful none the less. Which is why I pulled it up this morning. We seem to be holding right around 23k but the weekend is coming... So a stop loss is recommended just in case. Anyways lets take a look at the charts.
I see consolidation. Right along the line I drew at 22700. This is showing signs of being support. The candles have all closed above this level ever since we broke above the resistance which is now support. We seem to be holding the line with 23k. The bulls are still fighting. Every time we drop below the 22700 support we recover to close above it. There are plenty of wicks below the support but since the candles all seem to close above the 22700 line I see support being strong at this level.
Of course being at 22939 is pretty new for us. For now I am watching for the support and resistance that forms at these levels. In the event of a retrace this info will be crucial to making solid trades. This is all new for all of us and every single candle has a story to tell. As traders we need to decipher that story so we can make money off it. TA is not easy at these levels and the best advice I can give anyone that wants to long this is to make sure you set a stop loss. A retrace is on everyones mind. I promise we wont go up forever...
With that in mind I see a possible continuation pattern. Its not 100% that we break up from this pattern but it certainly looks like a possibility if you believe this is a continuation pattern. Although Ive seen patterns like this break down. That would be a blow to confidence but I dont think it will be enough for us to lose 20k. Although I could be wrong. I see support below us around 22700 and 20800. I guess Im hoping in the event of a drop these supports may just save the day. But only time will tell if this will work out.
The triangle I drew on the chart could break either way to be honest. These equilateral triangles are a bit unpredictable. I would love to see us break up and smash 24k. But I will be realistic and assume a break down to former support is highly likely. Especially if you look at the RSI on major time frames. They are all over bought. That is to be expected in a bull market. 2017 and 2019 both saw highly extended RSI that did eventually result in a drop. I cant promise you anything but what I can do is recommend that you exercise risk management and set that stop loss. This market is wild at these levels and I would hate to see you guys lose any profit.
As we cruise right along at 23k approximately I remember those days at 3800. Or 3200. We spent all that time listening to the haters and now that the tables have turned it is nice. Bitcoin has gained legitimacy in the eyes of institutions this year and with that millions of people around the globe now have access to buying and selling Bitcoin via Paypal. Even if it is custodial it is still a big deal. 2020 has been terrible as far as the pandemic and job market is concerned but for Bitcoin investors this has been our best year. At least it has been the best year I have experienced. I know 2017 was just as hyped but I joined the party late that year. What will 2021 bring us? Will we see new highs or a retrace just like in 2018??? Only time will tell. I hope you all have a good Friday and an even greater weekend. Remember that I am going out of town today and may not be able to share my analysis tomorrow. I may be wrong. Im just not 100% about the service and even if I have wifi available in this cabin we rented. All I know is there is a TV there with a dvd player. LOL. If I can share with you guys believe me I will. I get up so early most of the time I enjoy having my coffee and looking at the charts. But if you dont see me you understand why. Make good choices my friends! WTFDIK????
TLDR: Consolidation. 22700 seems to be support. 23k seems to be resistance. Weekend is coming so set that stop loss. Also I am going out of town so if you dont see me tomorrow dont send a search party. Ill be back I promise.
I see consolidation. Right along the line I drew at 22700. This is showing signs of being support. The candles have all closed above this level ever since we broke above the resistance which is now support. We seem to be holding the line with 23k. The bulls are still fighting. Every time we drop below the 22700 support we recover to close above it. There are plenty of wicks below the support but since the candles all seem to close above the 22700 line I see support being strong at this level.
Of course being at 22939 is pretty new for us. For now I am watching for the support and resistance that forms at these levels. In the event of a retrace this info will be crucial to making solid trades. This is all new for all of us and every single candle has a story to tell. As traders we need to decipher that story so we can make money off it. TA is not easy at these levels and the best advice I can give anyone that wants to long this is to make sure you set a stop loss. A retrace is on everyones mind. I promise we wont go up forever...
With that in mind I see a possible continuation pattern. Its not 100% that we break up from this pattern but it certainly looks like a possibility if you believe this is a continuation pattern. Although Ive seen patterns like this break down. That would be a blow to confidence but I dont think it will be enough for us to lose 20k. Although I could be wrong. I see support below us around 22700 and 20800. I guess Im hoping in the event of a drop these supports may just save the day. But only time will tell if this will work out.
The triangle I drew on the chart could break either way to be honest. These equilateral triangles are a bit unpredictable. I would love to see us break up and smash 24k. But I will be realistic and assume a break down to former support is highly likely. Especially if you look at the RSI on major time frames. They are all over bought. That is to be expected in a bull market. 2017 and 2019 both saw highly extended RSI that did eventually result in a drop. I cant promise you anything but what I can do is recommend that you exercise risk management and set that stop loss. This market is wild at these levels and I would hate to see you guys lose any profit.
As we cruise right along at 23k approximately I remember those days at 3800. Or 3200. We spent all that time listening to the haters and now that the tables have turned it is nice. Bitcoin has gained legitimacy in the eyes of institutions this year and with that millions of people around the globe now have access to buying and selling Bitcoin via Paypal. Even if it is custodial it is still a big deal. 2020 has been terrible as far as the pandemic and job market is concerned but for Bitcoin investors this has been our best year. At least it has been the best year I have experienced. I know 2017 was just as hyped but I joined the party late that year. What will 2021 bring us? Will we see new highs or a retrace just like in 2018??? Only time will tell. I hope you all have a good Friday and an even greater weekend. Remember that I am going out of town today and may not be able to share my analysis tomorrow. I may be wrong. Im just not 100% about the service and even if I have wifi available in this cabin we rented. All I know is there is a TV there with a dvd player. LOL. If I can share with you guys believe me I will. I get up so early most of the time I enjoy having my coffee and looking at the charts. But if you dont see me you understand why. Make good choices my friends! WTFDIK????
TLDR: Consolidation. 22700 seems to be support. 23k seems to be resistance. Weekend is coming so set that stop loss. Also I am going out of town so if you dont see me tomorrow dont send a search party. Ill be back I promise.