Good morning again ladies and gentlemen and welcome back to my daily look into the exciting world of Bitcoin. Today I have the 1 day time frame pulled up after stalling out around 11500 during the recent pump action. I sure like what I saw Saturday but we still have plenty of work to do if we want to make these gains stick. We still have the bears below us and they will drag the candles back down if the get a shot. I will explain the goods and the bads I see in the coming analysis. So sit back and grab me a coffee and enjoy!
Okay so I drew a channel on the daily. It is pretty easy to see the candles are respecting the borders of the channel and that could literally end any time. But for now it is still active and since that is the case I will play it. Sell when we hit the top and buy close to the bottom. Sometimes you come out with 2-3 solid quick profit gains. Have I lost playing the charts in this fashion? Sure I have. I lose pretty much as often as I win. The thing is I limit my losses to minimal amounts thanks to my stop loss and my gains tend to be much better than my losses. Mainly because of my refusal to move my stop loss down to remain in the trade. My strategy is to never ever move the stop loss down. Only up. Locking in that profit as I go. When you notice patterns like the one in question it gives a degree of reliability as to where pivots may occur. Nothing is perfect in the world of trading but thats the fun of it after all.
So looking at the channel we can see that we hit the top and ricocheted off of it recently to start a trek back down the charts. The reason that this doesnt really surprise me is the fact that the RSI was also massively over bought and that coupled with the fact that we hit the top of the channel on the chart should have been a dead give away of a reversal. I have been slightly bearish this week. Mainly due to the gap recently formed below us over this previous weekend. From 11100 - 11275. If we fill it I hope to see a pivot right at 11100. 11100 is significant as far as support/resistance is concerned. If we drop below this level we may see confidence wane and Bitcoin could drop a bit.
I dont want to alarm anyone. Bitcoin is absolutely resilient and all you need to do is pair a chart with recent FUD and any fool can see that Bitcoin was the clear winner in that heated exchange. TKO. But markets are gonna market and what goes up must come down. Ive said it before and I will say it again. This market (along with most others) are entirely cyclical and as a result if you do not know how to read a chart you will likely end up losing some $$$. If you want to get started trading may I suggest paper trading. (basically fake trading) You simply right down your fake trades and see how you would do. I have done that quite often and it helps a lot in my opinion. Identifying support and resistance becomes easier the more you trade. That is the most important thing a noob can learn. Support and resistance. I hope you all have a great day. Make good choices!!! WTFDIK
TLDR: Channel seems to be the story today. We have started to form a channel that will take the candles up but likely ultimately end in a drop. We need to stay above 11100 to keep the momentum in the bull pen so to speak. Cmon bulls show us what you got
Okay so I drew a channel on the daily. It is pretty easy to see the candles are respecting the borders of the channel and that could literally end any time. But for now it is still active and since that is the case I will play it. Sell when we hit the top and buy close to the bottom. Sometimes you come out with 2-3 solid quick profit gains. Have I lost playing the charts in this fashion? Sure I have. I lose pretty much as often as I win. The thing is I limit my losses to minimal amounts thanks to my stop loss and my gains tend to be much better than my losses. Mainly because of my refusal to move my stop loss down to remain in the trade. My strategy is to never ever move the stop loss down. Only up. Locking in that profit as I go. When you notice patterns like the one in question it gives a degree of reliability as to where pivots may occur. Nothing is perfect in the world of trading but thats the fun of it after all.
So looking at the channel we can see that we hit the top and ricocheted off of it recently to start a trek back down the charts. The reason that this doesnt really surprise me is the fact that the RSI was also massively over bought and that coupled with the fact that we hit the top of the channel on the chart should have been a dead give away of a reversal. I have been slightly bearish this week. Mainly due to the gap recently formed below us over this previous weekend. From 11100 - 11275. If we fill it I hope to see a pivot right at 11100. 11100 is significant as far as support/resistance is concerned. If we drop below this level we may see confidence wane and Bitcoin could drop a bit.
I dont want to alarm anyone. Bitcoin is absolutely resilient and all you need to do is pair a chart with recent FUD and any fool can see that Bitcoin was the clear winner in that heated exchange. TKO. But markets are gonna market and what goes up must come down. Ive said it before and I will say it again. This market (along with most others) are entirely cyclical and as a result if you do not know how to read a chart you will likely end up losing some $$$. If you want to get started trading may I suggest paper trading. (basically fake trading) You simply right down your fake trades and see how you would do. I have done that quite often and it helps a lot in my opinion. Identifying support and resistance becomes easier the more you trade. That is the most important thing a noob can learn. Support and resistance. I hope you all have a great day. Make good choices!!! WTFDIK
TLDR: Channel seems to be the story today. We have started to form a channel that will take the candles up but likely ultimately end in a drop. We need to stay above 11100 to keep the momentum in the bull pen so to speak. Cmon bulls show us what you got