We got the break last night we were patiently waiting for to see bulls set their higher low at $3437 and allowed many to scale into positions during that consolidation before the next bull break. We are now into the $3800s which is fantastic to see the bulls pushing higher. I personally scaled out of half my position at $3787 last night and remainder I am utilizing higher lows on 4 hour for stops. I am expecting consolidation today or definitely by tomorrow as we are pretty extended on 4 hour time frame. Remember, consolidation is perfectly normal and healthy. No reason to shake people out of positions and should be reason to scale into positions provided there are no red flags on the consolidation. Red flags I will be watching for is any loss of higher lows (start with hourly and then to 4 hour), spike in bearish volume (I want to see small declining bearish volume on any consolidation, not large and increasing bearish volume).
Overhead resistance I am watching is $3875 and $4035 from back in early December. If the bulls can push this into the low $4000s before consolidation, it would be a nice sign and would give the bulls some much needed breathing space on the daily chart to try and eventually set a higher low (and then ideally a higher high to start shifting this trend).
I know a lot in the space are getting bullish so only word of caution is we have seen this before this year and then eventually fall lower. Even our move in late November was a 27-28% gain for BTC and we all know that eventually turned into lower lows still. This move the past 3-4 days has been about 24% gains so far. In order for these bulls to really start proving themselves they need to shift these lower lows into higher lows and then higher highs on daily chart and then eventually on the weekly chart but that is a long ways away from being able to do that. For anyone who did not hop in on this bull move, hard to justify chasing here and would ideally want to see some consolidation and entries there. But at least the space is back on my trading radar again and has me keeping a much closer watch.
Sorry for the long read. Please like, share, comment!
Just My 2 Sats!
Overhead resistance I am watching is $3875 and $4035 from back in early December. If the bulls can push this into the low $4000s before consolidation, it would be a nice sign and would give the bulls some much needed breathing space on the daily chart to try and eventually set a higher low (and then ideally a higher high to start shifting this trend).
I know a lot in the space are getting bullish so only word of caution is we have seen this before this year and then eventually fall lower. Even our move in late November was a 27-28% gain for BTC and we all know that eventually turned into lower lows still. This move the past 3-4 days has been about 24% gains so far. In order for these bulls to really start proving themselves they need to shift these lower lows into higher lows and then higher highs on daily chart and then eventually on the weekly chart but that is a long ways away from being able to do that. For anyone who did not hop in on this bull move, hard to justify chasing here and would ideally want to see some consolidation and entries there. But at least the space is back on my trading radar again and has me keeping a much closer watch.
Sorry for the long read. Please like, share, comment!
Just My 2 Sats!
