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 after a pretty decent dip this morning. We have recovered some ground but 35k is pretty distant from the candles at this point. I know many are calling this the start of the dip. Perhaps they are correct? I do know I see a reason for the dip this morning and I will discuss that in this analysis. So pull up a chair and lets get this show on the road.
We dropped. And yes it was quite a far drop. Thousands of dollars lost and Im sure noobs are scrambling as I type this. But all you new folks need to understand this is business as usual for Bitcoin. Nothing we havent witnessed in the past. Bitcoin goes up and it comes down. Dont look at the dips as a bad sign. Healthy markets fluctuate. People take profit and the price drops. Bulls see the price drop and buy. The cycle will repeat. We had a lot of reasons to stay above 28k and I want to bring those up as well.
The .382 fib (28300) held during the dip. That could also have something to do with the gap that formed from the bullish weekend we experienced. We created a 3000 dollar + gap below us to start the week. So as soon as I get up this morning I see people calling 28k BTC and I knew the gap was being filled. Now that I check the gap has certainly been filled and thats usually what occurs. Gaps tend to fill rather quickly on Monday A.M. and Even though I thought filling a 3k + gap would be easier said than done the bears just proved that they are still a force to be reckoned with.
The dip this a.m. also saw us drop to the 4hr 50 MA. I said it the other day but I will say it again... If we lose the 4hr 50 MA it could be the start of the dip. There is no guarantee of this but I suspect that when we start losing support the snowball effect takes effect and weak hands exit positions. Yes I said it... That same fomo that took us to 35k can take us back down to 20k. So what are you doing to ensure you lock in those profits? I suggest setting a stop loss and playing it safe at this point.
This is the first of the year for many people. Loads were off work for New years including 9-5 desk traders. Now that things are starting to return to some normalcy we may see a different market. Especially since tax season is right down the road. Loads of people made profit and as a result people will likely owe a lot of taxes. With that in mind people may take profit from the market in order to pay these tax obligations. The one factor that can lessen the blow of tax season is the stimulus they handed out. People may use this to cover some or all of their tax obligations. There is certainly a lot to consider that may not be on the charts. Stuff like this matters even if you cant see it with the help of an indicator.
We have since recovered from nearly 28k back up to 31100 right now. Things look decent since we dropped to fill the gap but be realistic. A dip is likely going to show its face sooner or later. Not the dip we saw this a.m. That was nothing. Perhaps the drop will leave us above 20K? Only time will tell for sure. Even if we dropped back to 10k or even 5k that would be awful to some but that looks like the opportunity of a lifetime to me. Just like last March. I bought at 4k and it went up over 8X. That is a great return in less than a year. Will 2021 bring us more opportunities like that? We will see. Happy New year everyone and I hope you all have a great day. Make good smart choices! And always remember... WTFDIK???
TLDR: Drop to nearly 28k (filling in that huge gap {Gap was filled}) We still have plenty of support. Be on your toes. The bears seem hungry...
We dropped. And yes it was quite a far drop. Thousands of dollars lost and Im sure noobs are scrambling as I type this. But all you new folks need to understand this is business as usual for Bitcoin. Nothing we havent witnessed in the past. Bitcoin goes up and it comes down. Dont look at the dips as a bad sign. Healthy markets fluctuate. People take profit and the price drops. Bulls see the price drop and buy. The cycle will repeat. We had a lot of reasons to stay above 28k and I want to bring those up as well.
The .382 fib (28300) held during the dip. That could also have something to do with the gap that formed from the bullish weekend we experienced. We created a 3000 dollar + gap below us to start the week. So as soon as I get up this morning I see people calling 28k BTC and I knew the gap was being filled. Now that I check the gap has certainly been filled and thats usually what occurs. Gaps tend to fill rather quickly on Monday A.M. and Even though I thought filling a 3k + gap would be easier said than done the bears just proved that they are still a force to be reckoned with.
The dip this a.m. also saw us drop to the 4hr 50 MA. I said it the other day but I will say it again... If we lose the 4hr 50 MA it could be the start of the dip. There is no guarantee of this but I suspect that when we start losing support the snowball effect takes effect and weak hands exit positions. Yes I said it... That same fomo that took us to 35k can take us back down to 20k. So what are you doing to ensure you lock in those profits? I suggest setting a stop loss and playing it safe at this point.
This is the first of the year for many people. Loads were off work for New years including 9-5 desk traders. Now that things are starting to return to some normalcy we may see a different market. Especially since tax season is right down the road. Loads of people made profit and as a result people will likely owe a lot of taxes. With that in mind people may take profit from the market in order to pay these tax obligations. The one factor that can lessen the blow of tax season is the stimulus they handed out. People may use this to cover some or all of their tax obligations. There is certainly a lot to consider that may not be on the charts. Stuff like this matters even if you cant see it with the help of an indicator.
We have since recovered from nearly 28k back up to 31100 right now. Things look decent since we dropped to fill the gap but be realistic. A dip is likely going to show its face sooner or later. Not the dip we saw this a.m. That was nothing. Perhaps the drop will leave us above 20K? Only time will tell for sure. Even if we dropped back to 10k or even 5k that would be awful to some but that looks like the opportunity of a lifetime to me. Just like last March. I bought at 4k and it went up over 8X. That is a great return in less than a year. Will 2021 bring us more opportunities like that? We will see. Happy New year everyone and I hope you all have a great day. Make good smart choices! And always remember... WTFDIK???
TLDR: Drop to nearly 28k (filling in that huge gap {Gap was filled}) We still have plenty of support. Be on your toes. The bears seem hungry...