Good morning everyone and welcome to my daily analysis of BTC. Today I have the 4hr pulled up and I can see the bulls worked late last night. Nice work! Can the gains stick though?? 7200 has proven to be tough resistance and in order to climb more we must hurdle that .5 fib to keep this party alive and kicking.
With no noticeable gaps from the weekend we do not have to worry about dipping simply because there is a gap below us. That is nice to know, but that doesnt mean we are out of the woods yet. Not even close. We have reached 6900+ 4 times in the past 2 weeks and gotten slapped down each time. If you look at the RSI at the time we approached this 6900 - 7200 range it is almost always in overbought territory. This approach to 7k+ is no different with RSI reaching overbought territory. Now this fact alone doesnt guarantee a drop but its telling to say the least.
The bottom support line on the uptrend is sitting around 6650 which is the magic number if the bears start to sell. Since the trend support is moving upwards over time that number will increase with every candle. Eventually it should fail folks. Typically an uptrend is followed by a down trend. That is why they call the markets cyclical. They go up and down. Just looking at the RSI alone compared to past data I expect a retest of trend support today. Although if the bulls decide to wake up early that could be easily negated.
As the .5 resistance reached the support of the trend it creates an ascending triangle. This could be a signal of a reversal pattern. The ascending triangles are typically continuation patterns that form during an uptrend, but they can also signal a reversal during a down trend. If I were you and I decided to go long here I would immediately set a strict stop loss. But I always do that.
Just being above that 200 MA on the 4hr is bullish. We are also above the 50 MA and the cloud on the 4hr. All of these are considered bullish. The markets are pretty wild at the moment and with USDT printing tons of USDT in anticipation of needing it this market could really go either way. Especially considering this stupid virus seems to be peeking (at least here in the states). I am not a doctor and I dont want to come off like I know what Im talking about as far as that is concerned. Im just going by the local number count of people infected here in Houston.
Things will return to normal and the markets will rebound. It wont be today or tomorrow. But it will happen. With oil being the lowest it has been since 2002 or something us BTC traders should count our lucky stars we didnt dip that much. The dip was absolutely significant, dont get me wrong... But we have already recovered to 7k which is promising to say the least. Im not overly optimistic here. I have a strict stop loss set and Im not taking any chances here. Lets hope this ascending triangle on the chart is bullish in nature. We should know within a few days at the most. But then again WTFDIK right?
TLDR: We are above the 7k mark which is nice to see. We are in a big ascending triangle which could signal a reversal. Trade at your own risk folks. With unemployment numbers so high people may not be putting money into the markets like they were and it could hinder a break out.
With no noticeable gaps from the weekend we do not have to worry about dipping simply because there is a gap below us. That is nice to know, but that doesnt mean we are out of the woods yet. Not even close. We have reached 6900+ 4 times in the past 2 weeks and gotten slapped down each time. If you look at the RSI at the time we approached this 6900 - 7200 range it is almost always in overbought territory. This approach to 7k+ is no different with RSI reaching overbought territory. Now this fact alone doesnt guarantee a drop but its telling to say the least.
The bottom support line on the uptrend is sitting around 6650 which is the magic number if the bears start to sell. Since the trend support is moving upwards over time that number will increase with every candle. Eventually it should fail folks. Typically an uptrend is followed by a down trend. That is why they call the markets cyclical. They go up and down. Just looking at the RSI alone compared to past data I expect a retest of trend support today. Although if the bulls decide to wake up early that could be easily negated.
As the .5 resistance reached the support of the trend it creates an ascending triangle. This could be a signal of a reversal pattern. The ascending triangles are typically continuation patterns that form during an uptrend, but they can also signal a reversal during a down trend. If I were you and I decided to go long here I would immediately set a strict stop loss. But I always do that.
Just being above that 200 MA on the 4hr is bullish. We are also above the 50 MA and the cloud on the 4hr. All of these are considered bullish. The markets are pretty wild at the moment and with USDT printing tons of USDT in anticipation of needing it this market could really go either way. Especially considering this stupid virus seems to be peeking (at least here in the states). I am not a doctor and I dont want to come off like I know what Im talking about as far as that is concerned. Im just going by the local number count of people infected here in Houston.
Things will return to normal and the markets will rebound. It wont be today or tomorrow. But it will happen. With oil being the lowest it has been since 2002 or something us BTC traders should count our lucky stars we didnt dip that much. The dip was absolutely significant, dont get me wrong... But we have already recovered to 7k which is promising to say the least. Im not overly optimistic here. I have a strict stop loss set and Im not taking any chances here. Lets hope this ascending triangle on the chart is bullish in nature. We should know within a few days at the most. But then again WTFDIK right?
TLDR: We are above the 7k mark which is nice to see. We are in a big ascending triangle which could signal a reversal. Trade at your own risk folks. With unemployment numbers so high people may not be putting money into the markets like they were and it could hinder a break out.