Good morning again everyone and welcome back to my daily analysis of Bitcoin. Today I have the 4hr time frame pulled up after losing a bit of ground yesterday. Nothing too serious as of yet in my opinion but the dip to 45k yesterday was sort of a reminder that the bears are still alive and well. We have recovered since yesterdays low but there is still reason to keep an eye out for the bears. I will discuss my thoughts further so grab a cup of coffee and lets get this party started.
The drop to 45k showed us quite a bit for a trader if you paid attention that is. It showed that there is support around 45k. It also shows that 50k - 51k could be a spot to expect resistance. Not so much because of historic reasoning but mainly since the cloud lies at this level. The 4hr candles have already shown that they are respecting the borders of that cloud. It may not be this way forever but for now the 4hr cloud seems to be resistance. Its pretty crazy when you look at it. We have been hugging that cloud for the last 6 4hr candles (24 hrs) so that is definitely something traders should take note of.
I see that we are currently sitting just above 50k. That retrace was pretty impressive. We dipped to 45k and climbed back to 50k. If you can take advantage of swings like this you can be a great trader. Yesterday I was really watching the 4hr RSI and noticed once we got to the bottom of the RSI graph we had a real shot at a bounce. It didn't take us above the 4hr 50 MA like I wanted but that doesn't mean it was not an opportune time to make a quick 10%. I know 10% may not sound like much to you crypto heads but I will take a 10% profit in a trade any day.
I drew an ascending support onto the chart in green. We lost this support briefly upon yesterdays dump but just recently recovered the lost support. But that put us between a rock and a hard place. The bottom of the 4hr cloud has been keeping the candles from advancing upwards for the time being and it is basically a fight of which way is the path of least resistance? The upward trend or the 4hr cloud? One of them is likely to give soon and we will have our answer. In the mean time set a stop loss.
Some key areas of support right now are as follows: 42k (previous ATH) 45k (yesterday the candles stopped dropping here and showed signs of support) and 50K which is right below us. Resistance currently is comprised of the 4hr cloud first and foremost. That is the real thorn in the bulls side right this second. The next resistance on my mind is the 4hr 50 MA. I mentioned this a few times over the last few weeks, if we lose the support of the 4hr 50 MA I wont be bearish anymore. The bulls can flip the script though by retaking the former support. So there you have it. I hope you all have a great day folks and make good choices! WTFDIK???
TLDR: Bitcoin is a work of art. whether the price is 1 dollar or 100,000 dollars. If we can retake the 4hr 50 MA I am bullish. If not I think more blood is certainly a possibility. Cheers!
The drop to 45k showed us quite a bit for a trader if you paid attention that is. It showed that there is support around 45k. It also shows that 50k - 51k could be a spot to expect resistance. Not so much because of historic reasoning but mainly since the cloud lies at this level. The 4hr candles have already shown that they are respecting the borders of that cloud. It may not be this way forever but for now the 4hr cloud seems to be resistance. Its pretty crazy when you look at it. We have been hugging that cloud for the last 6 4hr candles (24 hrs) so that is definitely something traders should take note of.
I see that we are currently sitting just above 50k. That retrace was pretty impressive. We dipped to 45k and climbed back to 50k. If you can take advantage of swings like this you can be a great trader. Yesterday I was really watching the 4hr RSI and noticed once we got to the bottom of the RSI graph we had a real shot at a bounce. It didn't take us above the 4hr 50 MA like I wanted but that doesn't mean it was not an opportune time to make a quick 10%. I know 10% may not sound like much to you crypto heads but I will take a 10% profit in a trade any day.
I drew an ascending support onto the chart in green. We lost this support briefly upon yesterdays dump but just recently recovered the lost support. But that put us between a rock and a hard place. The bottom of the 4hr cloud has been keeping the candles from advancing upwards for the time being and it is basically a fight of which way is the path of least resistance? The upward trend or the 4hr cloud? One of them is likely to give soon and we will have our answer. In the mean time set a stop loss.
Some key areas of support right now are as follows: 42k (previous ATH) 45k (yesterday the candles stopped dropping here and showed signs of support) and 50K which is right below us. Resistance currently is comprised of the 4hr cloud first and foremost. That is the real thorn in the bulls side right this second. The next resistance on my mind is the 4hr 50 MA. I mentioned this a few times over the last few weeks, if we lose the support of the 4hr 50 MA I wont be bearish anymore. The bulls can flip the script though by retaking the former support. So there you have it. I hope you all have a great day folks and make good choices! WTFDIK???
TLDR: Bitcoin is a work of art. whether the price is 1 dollar or 100,000 dollars. If we can retake the 4hr 50 MA I am bullish. If not I think more blood is certainly a possibility. Cheers!