Good morning all and welcome to my daily analysis of Bitcoin. Today I have the 4hr chart pulled up and I see that we have managed to keep our heads above 7k. But can this continue? Is a retrace in the cards??? Well it certainly can happen. But there are also some reasons to be optimistic. Lets take a look.
The daily 50 MA (in yellow) is proving to be tough resistance as I thought it would be. We have been rejected by it already 2 times and now we are above the daily cloud and below the daily 50 MA... Or a rock and a hard place. The .5 fib that is providing us with the support we desperately need is also merged with the top of the daily cloud. We slipped through the break in the cloud yesterday. In order to say without a doubt we made it through said cloud is to close a confirmation candle above it. Which means we should know in 12 hours or so if we keep our head out of the daily cloud.
Looking at what the 4hr chart is telling me I see that the current support we have thanks to the uptrend will cross the daily 50 MA and from the looks of it the 50 MA will likely win the battle. We will likely sink to sub 7k if that does happen and end up within the confines of the daily cloud. If we can manage to remain in the daily cloud we will remain above 6k indefinitely. That is unless we fall out below the cloud. For now I would be hesitant to enter a long position at this point. If you are feeling lucky go ahead. But remember to set that stop loss folks.
The ray of sunshine here is the 4hr 50 MA is pretty much merged with the 4hr 50 MA which will make it a bit stronger as far as support is concerned. Though the 4hr 50 MA is not as reliable as the daily 50 MA is I am still watching to see what happens. If we do drop it will make cheaper BTC for the halving which approximately a month away. There is a silver lining if you look for it folks.
The volume suggests people are taking profit at this point but its not causing a huge drop which signals a bit of indecision. We should understand what the markets plan to do a bit better when the western hemisphere wakes up and decides how they plan to play this. I love green candles as much as any of you but at this point my money is on the bears.
So if the bulls do win this tug a war we will likely end up inside the daily cloud for a while. That is actually not the worst thing that can happen as the top and bottom of the cloud are possible providers of support. It is nice knowing you have some support to catch you in the event of a drop. No big deal. We can refuel and try again.
This market is absolutely cyclical. Which means what goes up comes down. Just get used to this and ride the waves when you can and you should be able to pull in some nice profit. In the mean time set a stop loss and keep your eyes on the charts folks. This may get bumpy. But then again WTFDIK right??
TLDR: Looks like we are topping out at the daily 50 MA. We have a lot of support below us as well. My money is on the bears today but like I always say... WTFDIK right? Dont forget to set a stop loss!
The daily 50 MA (in yellow) is proving to be tough resistance as I thought it would be. We have been rejected by it already 2 times and now we are above the daily cloud and below the daily 50 MA... Or a rock and a hard place. The .5 fib that is providing us with the support we desperately need is also merged with the top of the daily cloud. We slipped through the break in the cloud yesterday. In order to say without a doubt we made it through said cloud is to close a confirmation candle above it. Which means we should know in 12 hours or so if we keep our head out of the daily cloud.
Looking at what the 4hr chart is telling me I see that the current support we have thanks to the uptrend will cross the daily 50 MA and from the looks of it the 50 MA will likely win the battle. We will likely sink to sub 7k if that does happen and end up within the confines of the daily cloud. If we can manage to remain in the daily cloud we will remain above 6k indefinitely. That is unless we fall out below the cloud. For now I would be hesitant to enter a long position at this point. If you are feeling lucky go ahead. But remember to set that stop loss folks.
The ray of sunshine here is the 4hr 50 MA is pretty much merged with the 4hr 50 MA which will make it a bit stronger as far as support is concerned. Though the 4hr 50 MA is not as reliable as the daily 50 MA is I am still watching to see what happens. If we do drop it will make cheaper BTC for the halving which approximately a month away. There is a silver lining if you look for it folks.
The volume suggests people are taking profit at this point but its not causing a huge drop which signals a bit of indecision. We should understand what the markets plan to do a bit better when the western hemisphere wakes up and decides how they plan to play this. I love green candles as much as any of you but at this point my money is on the bears.
So if the bulls do win this tug a war we will likely end up inside the daily cloud for a while. That is actually not the worst thing that can happen as the top and bottom of the cloud are possible providers of support. It is nice knowing you have some support to catch you in the event of a drop. No big deal. We can refuel and try again.
This market is absolutely cyclical. Which means what goes up comes down. Just get used to this and ride the waves when you can and you should be able to pull in some nice profit. In the mean time set a stop loss and keep your eyes on the charts folks. This may get bumpy. But then again WTFDIK right??
TLDR: Looks like we are topping out at the daily 50 MA. We have a lot of support below us as well. My money is on the bears today but like I always say... WTFDIK right? Dont forget to set a stop loss!