Well first Merry Christmas to my followers and anyone checking out this chart. I hope each and every one of you gets to enjoy the holiday with your family.
Wanted to get a quick update for BTC here. I had personally exited my positions and locked in profits a couple of days ago as BTC started its lower highs and lower lows on hourly and 4 hour charts. This however lasted a very brief time and I was very impressed when bulls set $3775 as the low before climbing back to a new high of this move which is now $4239. Bulls held 26 EMA on the 4 hour chart for that pull back and I was expecting them to lose it before trying for higher highs. So instead I remained patient and recognized my initial thoughts were if we had gotten a bull break originally above our high (at the time it was $4175) that I was not expecting much follow through. So here we are a few days later and that follow through only yielded $64 before we started pulling back again.
This pullback is different in my opinion for a couple of reasons.
1. We have lost 26 EMA support on 4 hour chart
2. We saw the initial red candlestick up near the top and then saw the INCREASING bear volume behind it.
So those are negatives. If I were looking for positives, I'd give a couple reasons here as well.
1. The bulls held the initial low of our pullback 3 days ago (the $3775) albeit by $11.
2. The daily chart found support on its 12 EMA.
So what next? I continue to remain cash personally as I still want to see that daily chart consolidate more and form its healthy higher low. I would consider bullish entries if hour chart can turn higher lows and higher highs but ideally want to keep patient and wait. Will $3775 hold again? I don't know but I was leaning No last post and I remain of that same mindset. $3775 was not enough consolidation in my opinion and I still think there is more to come. Perhaps bulls turn it around and don't fall lower but I'll wait and see. ETH and LTC who have both run harder, are also falling harder with about 20% and 17% pullbacks respectively in the last few hours compared to about 10% for BTC. We are definitely seeing some increased volatility today so it does have me protective as I don't care to be involved in a whale battle with fast swings in price action.
Likely no chart update tomorrow unless something exciting happens so once again, Merry Christmas! Please like, share, comment.
Just My 2 Sats!
