Good morning ladies and gentlemen and welcome back to my daily look into the oldest cryptocurrency on the planet... Bitcoin! Today I have the 4hr time frame pulled up again after a little pump action yesterday. I like what I saw from the bulls yesterday. They took us to new levels not seen since September 1st. I know I enjoyed walking up my stop loss yesterday. But will these gains stick? Lets take a look at what is going on.
I brought up a few days back that I thought I noticed a bullish divergence. Im still kind of green when it comes to a divergence but from October 9th to the 16th we ultimately moved sideways. I mean there were ups and downs along the way but ultimately we found ourselves right where we began in terms of price. But not with RSI. RSI seemingly sunk while we moved sideways which to me is bullish. What are your thoughts? If this was not a bullish divergence I guess I need to hit the books again.
Back to the chart. We broke above the .236 fib on my chart. If we keep this up I might just have to lay another Fib down and reassess the charts. We are close to kissing 12k once again as well. With all the recent FUD (Bitmex and OKEx and Kucoin) you would expect the bears would have had a field day. If you ask me it was a real missed opportunity (for the bears to capitalize on this FUD) But perhaps the bears were discouraged that they couldnt use Bitmex to short so the price never dropped LOL. Im only having a bit of fun but this does show you Bitcoin is absolutely resilient.
We still remain in the larger trend that we have been in since we dropped to 9800 in early September. If you would have simply "bought the dip" when we went to 9800 you would have around 20% - 25% profit at the moment. Not to shabby for a simple buy and hold. I see we are above my trading set up on all the major time frames but we have also reached the top of the trend I just mentioned. This means we either retreat back into the trend or traders cinch up their saddles and take us to 12k+. Looking at current RSI on the 4hr it would look like a drop is in order. Perhaps to the new support of the .236 fib (11630)
12500 is this years high. The top of my fib lies on 12500. This is one of the few hurdles I notice when I look at the chart. But before that we need to worry about the possibility of psychological resistance showing its face around the 12k region. Traders often set stop losses or sell at nice even numbers. Its just a human trait that people choose to sell at 12k vs 11971. Does this mean 12k is guaranteed to be resistance? Absolutely not. But I would still keep this in mind. I would say by October the 26th we should know if we buck the current trend we have been in since early September or we drop back to previous support and continue along within the trend. With the way things have been going I think I will long this and set a good stop loss. I hope you all have a great day folks. Make good choices! WTFDIK???
TLDR: We pumped since yesterday. 11900 kissing 12k. RSI is high so we may have issues taking 12k today. Fingers crossed.
I brought up a few days back that I thought I noticed a bullish divergence. Im still kind of green when it comes to a divergence but from October 9th to the 16th we ultimately moved sideways. I mean there were ups and downs along the way but ultimately we found ourselves right where we began in terms of price. But not with RSI. RSI seemingly sunk while we moved sideways which to me is bullish. What are your thoughts? If this was not a bullish divergence I guess I need to hit the books again.
Back to the chart. We broke above the .236 fib on my chart. If we keep this up I might just have to lay another Fib down and reassess the charts. We are close to kissing 12k once again as well. With all the recent FUD (Bitmex and OKEx and Kucoin) you would expect the bears would have had a field day. If you ask me it was a real missed opportunity (for the bears to capitalize on this FUD) But perhaps the bears were discouraged that they couldnt use Bitmex to short so the price never dropped LOL. Im only having a bit of fun but this does show you Bitcoin is absolutely resilient.
We still remain in the larger trend that we have been in since we dropped to 9800 in early September. If you would have simply "bought the dip" when we went to 9800 you would have around 20% - 25% profit at the moment. Not to shabby for a simple buy and hold. I see we are above my trading set up on all the major time frames but we have also reached the top of the trend I just mentioned. This means we either retreat back into the trend or traders cinch up their saddles and take us to 12k+. Looking at current RSI on the 4hr it would look like a drop is in order. Perhaps to the new support of the .236 fib (11630)
12500 is this years high. The top of my fib lies on 12500. This is one of the few hurdles I notice when I look at the chart. But before that we need to worry about the possibility of psychological resistance showing its face around the 12k region. Traders often set stop losses or sell at nice even numbers. Its just a human trait that people choose to sell at 12k vs 11971. Does this mean 12k is guaranteed to be resistance? Absolutely not. But I would still keep this in mind. I would say by October the 26th we should know if we buck the current trend we have been in since early September or we drop back to previous support and continue along within the trend. With the way things have been going I think I will long this and set a good stop loss. I hope you all have a great day folks. Make good choices! WTFDIK???
TLDR: We pumped since yesterday. 11900 kissing 12k. RSI is high so we may have issues taking 12k today. Fingers crossed.