Good morning again ladies and gentlemen and welcome back to my daily analysis of Bitcoin. Today I have the 4hr time frame pulled up as there is a lot to talk about on this chart. Things are pretty busy at the moment and a break out is likely on the horizon IMO. But only time will tell for sure. It is Sunday but I have seen crazier things. Weekends are known for the low volume but every once in a while things pop off.. Will that happen today? Or will we lose 19k? Lets take a look at the chart.
I see that we are still in solid consolidation. Moving right along around 19k -19100. But as we move sideways in consolidation the bollinger bands have had a chance to tighten up and when that occurs you can expect increased volatility. But the bollinger bands alone are not going to tell you which way the break out shows its face. It is more or less a volatility indicator and it is helpful, but mainly when paired with other indicators that can lead you to make smart decisions with your trade.
The reason I bring that up is the overwhelming support below us currently. We have the 4hr 50 MA along with the top border of the 4hr cloud and then the bottom ascending support of the triangle. All of these combine to form a strong support. Does that mean we cannot break down? Absolutely not. You need to be prepared for anything in this market. But I am very optimistic.
I see a possible break out to retest 19900 and possibly falling back to former resistance before finally breaking 20k. I usually dont make predictions like this so please dont take this as financial advice. Im simply making an educated guess based on the information I have before me. We all know that nobody is correct 100% of the time so set a stop loss if you want to enter here and try to play this. Risk management is absolutely essential.
I sound bullish because I am bullish. We have 25 days left in 2020. Some people have called 2020 the worst year ever. Well that may be true for most but Bitcoin has had an amazing year. I think breaking 20k is very possible. Especially with the current sentiment coupled with the chart. Loads of support. Tight Bollinger bands. RSI has dropped a bit. Stay tuned folks! I hope you all have a great day! Make good choices! WTFDIK
TLDR: Bulls are awake
I see that we are still in solid consolidation. Moving right along around 19k -19100. But as we move sideways in consolidation the bollinger bands have had a chance to tighten up and when that occurs you can expect increased volatility. But the bollinger bands alone are not going to tell you which way the break out shows its face. It is more or less a volatility indicator and it is helpful, but mainly when paired with other indicators that can lead you to make smart decisions with your trade.
The reason I bring that up is the overwhelming support below us currently. We have the 4hr 50 MA along with the top border of the 4hr cloud and then the bottom ascending support of the triangle. All of these combine to form a strong support. Does that mean we cannot break down? Absolutely not. You need to be prepared for anything in this market. But I am very optimistic.
I see a possible break out to retest 19900 and possibly falling back to former resistance before finally breaking 20k. I usually dont make predictions like this so please dont take this as financial advice. Im simply making an educated guess based on the information I have before me. We all know that nobody is correct 100% of the time so set a stop loss if you want to enter here and try to play this. Risk management is absolutely essential.
I sound bullish because I am bullish. We have 25 days left in 2020. Some people have called 2020 the worst year ever. Well that may be true for most but Bitcoin has had an amazing year. I think breaking 20k is very possible. Especially with the current sentiment coupled with the chart. Loads of support. Tight Bollinger bands. RSI has dropped a bit. Stay tuned folks! I hope you all have a great day! Make good choices! WTFDIK
TLDR: Bulls are awake