Good morning Bulls and Bears and welcome back to my daily look into a traders dream we call Bitcoin. Today I have the 4hr time frame pulled up and I can see the bulls have been busy as of late. We even spiked to 11700 (approximately) yesterday but have since retreated to where we sit currently which is 11500. Not to shabby if you ask me. I still see some danger below us and I touched on it a bit yesterday. But lets take a look at what is going on today.
Looking at the current pattern. We see the typical bullish step pattern up the 4hr chart. I drew some lines on the chart that point to a possible drop. Typically triangles like this break down.. But remember this is BTC and with that in mind we must remember how contrarian this asset can be. We could very well break up if the bears are caught slipping. I know that the market is much more confident at this point than a week ago... That is for sure.
We do still have a small gap below us between 11100 and 11275. I really like the bottom of the gap being at this level. 11100 is important support and we cant lose it if we plan on retaking 12k any time soon. I really would prefer to fill the gap sooner rather than later. We only have gaps below us all the way down to around the mid 3k region. Does that mean we are destined to drop to 3600? Not necessarily. I would say 85% of gaps fill within a week and then 10% within 2 weeks, 4% take a month or less and then 1 % takes longer. Maybe even over a year. This shows you that gaps can be quite reliable tools to a trader. But they arent always filled immediately or may never... Only time will tell.
Looking at the daily and the 4hr we are sitting pretty when you look at my set up. Being above the 50 MA and the 200 MA along with the ichimoku cloud is considered bullish. That is the case on the 4hr and the daily which are pretty significant time frames. Same goes for the weekly. Things are going to get interesting very soon I believe. The fabled post halving pump should be arriving any day according to the prediction chart I saw. At least the time period between the last halving and the post halving pump took about the same amount of days as we have had after this recent halving. Markets arent perfect and nobody can guarantee that the pump will even occur or it the time frame will resemble previous halvings. This is our 3rd halving after all. So I think we are all still learning as the data is lacking when it comes to halvings.
Bitcoin is resilient. Oil gets bad news and its in the dumps for a year or more. Not the case with BTC. We dropped to 3800 this year and have climbed to over 12k which is a great return... Imagine throwing in 10000 and coming back 4 - 8 weeks later to 4x your investment. Only alts seemingly give better returns and that is so hit and miss. There are literally 10000 or more different alts you can pick from and good luck finding the good ones. Ive gotten lucky with alts but many dont have extensive charts and are tougher to analyze as a result. Bitcoin only has 10-11 years of data and accessing the first few years is tough. Regardless of this you can go back years and see patterns and history on the chart. Many alts dont have that luxury. Whatever you do dont forget to set a stop loss. This entire market is extremely volatile. After all its only billions of dollars vs the stock market which is literally trillion. Smaller markets move more than bigger more established markets. That is why Bitcoin is a traders dream, so long as you stick to a plan... Have a great day everyone and make good choices!!! WTFDIK???
TLDR: We could very well drop to fill in the gap below soon (11100 - 11275) We desperately need to stay above 11100. Come on bulls! Show us what you got..
Looking at the current pattern. We see the typical bullish step pattern up the 4hr chart. I drew some lines on the chart that point to a possible drop. Typically triangles like this break down.. But remember this is BTC and with that in mind we must remember how contrarian this asset can be. We could very well break up if the bears are caught slipping. I know that the market is much more confident at this point than a week ago... That is for sure.
We do still have a small gap below us between 11100 and 11275. I really like the bottom of the gap being at this level. 11100 is important support and we cant lose it if we plan on retaking 12k any time soon. I really would prefer to fill the gap sooner rather than later. We only have gaps below us all the way down to around the mid 3k region. Does that mean we are destined to drop to 3600? Not necessarily. I would say 85% of gaps fill within a week and then 10% within 2 weeks, 4% take a month or less and then 1 % takes longer. Maybe even over a year. This shows you that gaps can be quite reliable tools to a trader. But they arent always filled immediately or may never... Only time will tell.
Looking at the daily and the 4hr we are sitting pretty when you look at my set up. Being above the 50 MA and the 200 MA along with the ichimoku cloud is considered bullish. That is the case on the 4hr and the daily which are pretty significant time frames. Same goes for the weekly. Things are going to get interesting very soon I believe. The fabled post halving pump should be arriving any day according to the prediction chart I saw. At least the time period between the last halving and the post halving pump took about the same amount of days as we have had after this recent halving. Markets arent perfect and nobody can guarantee that the pump will even occur or it the time frame will resemble previous halvings. This is our 3rd halving after all. So I think we are all still learning as the data is lacking when it comes to halvings.
Bitcoin is resilient. Oil gets bad news and its in the dumps for a year or more. Not the case with BTC. We dropped to 3800 this year and have climbed to over 12k which is a great return... Imagine throwing in 10000 and coming back 4 - 8 weeks later to 4x your investment. Only alts seemingly give better returns and that is so hit and miss. There are literally 10000 or more different alts you can pick from and good luck finding the good ones. Ive gotten lucky with alts but many dont have extensive charts and are tougher to analyze as a result. Bitcoin only has 10-11 years of data and accessing the first few years is tough. Regardless of this you can go back years and see patterns and history on the chart. Many alts dont have that luxury. Whatever you do dont forget to set a stop loss. This entire market is extremely volatile. After all its only billions of dollars vs the stock market which is literally trillion. Smaller markets move more than bigger more established markets. That is why Bitcoin is a traders dream, so long as you stick to a plan... Have a great day everyone and make good choices!!! WTFDIK???
TLDR: We could very well drop to fill in the gap below soon (11100 - 11275) We desperately need to stay above 11100. Come on bulls! Show us what you got..