In Bits and Pieces? Don't Watch! (BTC)

Here again for another Doc breakdown, this time our beloved Bitcoin .

On the 4h chart we see our ruler and fearless leader, BTC taking the charge from 7950s to 9400s. Holy canoli, thats almost a 20% jump!!! Then you start doing the mental math in your head: If I had just put 100 dollars of my hard earned USD(or USDT hehe) yesterday, I would have made 20 bucks! Pretty soon your quitting your day job, buying name brand toothpaste, and trading in your 20 year old rusty bike for a new sexy thing with 29 inch wheels... All because of that 20% jump in BTC . OKayyyy maybe I'm getting a little a head of myself(or a lot!), let's cut to the chase as why that's wrong.

If you don't want to read anything else, read this: The jump we are seeing here is most likely a false breakout. Support and Resistance levels are at 8100s and 9800s respectively. I NEVER speak in certain terms because as technical analysts, we are like weathermen. BUT, just like weathermen, we should adjust to any new developments which come out.

Let the Doctor diagnose this chart. First, we are STILL in a downwards trend (Red parallel channel ), do not forget this. Second, yes we did see almost a 20% jump since yesterday's low, but peep the volume now and then(circled to the left in green). The volume with this increase is PUNY compared to before (which wasn't even a sustained reversal but certainly had more volume backing it then now!). Lastly, we are already seeing lower-highs on the next 4 hr candlestick .

Also, check the 2hr chart below for fun. If you look at the candlesticks they are already starting to trend down again with waning buyer momentum. Check the MACD too, losing buyer momentum.

I will continue to watch our fearless master of the crypto, BTC .
Happy trading!
-Dr.Don't Watch
Comment: Goodmorning cryptoland!

Looks like its back to eating Ramen and having generic toothpaste... Just after I called it, BTC began to tank. Now sitting at more than a 10% loss from right after my initial post. Will BTC bounce off of the 8100s and reverse the trend? Its too soon to call. I love the RSI as a leading indicator, but it hasn't given us any strong evidence of a reversal.

I will report a new Idea once we know more.

Good luck trading or patiently waiting... whichever suits you in this market ^_^
Trade closed: target reached: Closing as bottom resistance seems to be breaking at the moment. I will post as a new idea as we know more.
-Dr. Don't Watch


Nice setup!
+1 Reply
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