Good morning ladies and gentlemen and welcome to my daily analysis of Bitcoin. Today I have the 4hr pulled up after a rough week last week. Im cautiously optimistic though due to a few developments over the weekend. But I also have a little bearish news. Sentiment is seemingly returning to a fractured market. People mass exodused from Bitmex and I expected the price to drop significantly. But Bitcoin is surprisingly resilient and has surprised the lot of us. Anyways lets take a look at the charts.
Lets talk support and resistance. I have it clearly labeled just below the candles in the bottom right corner of the chart. I see we are still inside the 4hr cloud. The cloud is known to cause consolidation and that is exactly what is occurring. You see a few candles ago we broke to the top of the cloud but that top border of the 4hr cloud resisted our advances, sending us back below the 4hr 50 MA which we broke recently on our journey to the top of the cloud. Right now though the story on the chart is the fight between the 4hr 50 MA (resistance) and the 4hr 200 MA (support). Not only are we stuck inside the 4hr cloud but also between the 4hr 200 MA and the 4hr 50 MA. The spread between the support and resistance is hardly noticeable so Im thinking we should break out of this tight spot sooner rather than later.
I know you all want to know which way we go from here and I wish I had a crystal ball. Im no madame cleo but I can resort to using logic. I see a gap below us from this weekend. Does that concern me? Not really but we may drop to fill it. When the gap formed it was from 10620 and 10690 but since we have filled some of the gap. So technically the gap is even smaller now. From 10620 - 10670. A 50 dollar spread. I would love to see us fill that gap before we move up just to get it over with. Only time will tell for sure if my desires will come to fruition.
We are still inside of the big triangle I have drawn on the chart. I am going to leave the triangle on the chart til we invalidate the thing. We are still respecting the borders and I would say we should see a move on or before October 13th. Resistance is pretty strong where we sit currently. 10670 is where the .5 fib lies and has historically provided support and resistance at this level (at least recently) So this is the level I have my eyes on at the moment. After that 11100 is another area to keep an eye on if you are looking at future hurdles the bulls will encounter. That 2.5 year trend line is strong support and while it is meaningless to us at the moment if the bottom falls out the bulls will be glad that 2.5 year trend line is there. Lets hope it doesnt come to that. I want to see green candles. I hope you all have a great Monday... Make good choices! WTFDIK???
TLDR: $50 Gap below us (10620 - 10670) Support and resistance is listed on the chart. Dont be a hero, set a stop loss
Lets talk support and resistance. I have it clearly labeled just below the candles in the bottom right corner of the chart. I see we are still inside the 4hr cloud. The cloud is known to cause consolidation and that is exactly what is occurring. You see a few candles ago we broke to the top of the cloud but that top border of the 4hr cloud resisted our advances, sending us back below the 4hr 50 MA which we broke recently on our journey to the top of the cloud. Right now though the story on the chart is the fight between the 4hr 50 MA (resistance) and the 4hr 200 MA (support). Not only are we stuck inside the 4hr cloud but also between the 4hr 200 MA and the 4hr 50 MA. The spread between the support and resistance is hardly noticeable so Im thinking we should break out of this tight spot sooner rather than later.
I know you all want to know which way we go from here and I wish I had a crystal ball. Im no madame cleo but I can resort to using logic. I see a gap below us from this weekend. Does that concern me? Not really but we may drop to fill it. When the gap formed it was from 10620 and 10690 but since we have filled some of the gap. So technically the gap is even smaller now. From 10620 - 10670. A 50 dollar spread. I would love to see us fill that gap before we move up just to get it over with. Only time will tell for sure if my desires will come to fruition.
We are still inside of the big triangle I have drawn on the chart. I am going to leave the triangle on the chart til we invalidate the thing. We are still respecting the borders and I would say we should see a move on or before October 13th. Resistance is pretty strong where we sit currently. 10670 is where the .5 fib lies and has historically provided support and resistance at this level (at least recently) So this is the level I have my eyes on at the moment. After that 11100 is another area to keep an eye on if you are looking at future hurdles the bulls will encounter. That 2.5 year trend line is strong support and while it is meaningless to us at the moment if the bottom falls out the bulls will be glad that 2.5 year trend line is there. Lets hope it doesnt come to that. I want to see green candles. I hope you all have a great Monday... Make good choices! WTFDIK???
TLDR: $50 Gap below us (10620 - 10670) Support and resistance is listed on the chart. Dont be a hero, set a stop loss