Good morning ladies and gentlemen and welcome back to my daily look into the Bitcoin market... Today I have the 4 hr pulled up and I see we gained some ground since yesterday. We arent out of the woods yet though, that is for sure. We took back some support yesterday but stalled soon after and now we are in consolidation again. Typical of the weekend though. Lets take a look at what is going on this morning.
I see we entered the 4hr cloud which is really the first step to taking back the lost support from this previous week. We entered the 4hr cloud and now the bottom border of the cloud is acting as support. That is to be expected as that is the way the cloud works. Now that we are inside the cloud we can expect some consolidation (that is also the way the cloud works) So we could very well close the week inside or below the 4hr cloud.
The reason I say below is the fact the 4hr 200 MA and the 4hr 50 MA are directly above us. Very close to one another and that is 2 areas of resistance that are more or less on top of each other. Traders see situations like this and act accordingly. Just think logically here. Which is the path of least resistance? The bottom border of the 4hr cloud or the 4hr 200 MA and the 4hr 50 MA?? That is the question and logic points to the path of least resistance being that bottom border of the cloud. But I certainly would love to be wrong in this case.
After mentioning the resistance in the paragraph above it would be short sighted for me not to mention the top border of the 4hr cloud. So between 10630 and 10760 approximately there are 3 areas of resistance. That is tight and as a result I dont expect a lot from the bulls this weekend. If we can retake the lost support and get to 10800 I think that would possibly stoke confidence and as a result we could shoot to 10900 or 11k. 11100 is the real test though. It has proven to be strong support and over the last month it has been strong resistance. The bulls definitely have their work cut out for them if they want to turn this Bitmex fud around.
This week has been marked by FUD from the Bitmex fiasco. Trading has suffered and people are mass exodusing a well known platform due to uncertainty. Its to be expected when the owner gets arrested along with 5 other higher ups in the company. I have to be honest with you I thought when I saw the news of Bitmex that the price of Bitcoin would suffer much more than it did.. But so far its been resilient. Lets hope that continues. Have a great Sunday everyone. Make good choices! WTFDIK???
TLDR: Resistance is strong but we retook the 4hr cloud. Path of least resistance is down at the moment. Lets hope the bulls can prove me wrong!
I see we entered the 4hr cloud which is really the first step to taking back the lost support from this previous week. We entered the 4hr cloud and now the bottom border of the cloud is acting as support. That is to be expected as that is the way the cloud works. Now that we are inside the cloud we can expect some consolidation (that is also the way the cloud works) So we could very well close the week inside or below the 4hr cloud.
The reason I say below is the fact the 4hr 200 MA and the 4hr 50 MA are directly above us. Very close to one another and that is 2 areas of resistance that are more or less on top of each other. Traders see situations like this and act accordingly. Just think logically here. Which is the path of least resistance? The bottom border of the 4hr cloud or the 4hr 200 MA and the 4hr 50 MA?? That is the question and logic points to the path of least resistance being that bottom border of the cloud. But I certainly would love to be wrong in this case.
After mentioning the resistance in the paragraph above it would be short sighted for me not to mention the top border of the 4hr cloud. So between 10630 and 10760 approximately there are 3 areas of resistance. That is tight and as a result I dont expect a lot from the bulls this weekend. If we can retake the lost support and get to 10800 I think that would possibly stoke confidence and as a result we could shoot to 10900 or 11k. 11100 is the real test though. It has proven to be strong support and over the last month it has been strong resistance. The bulls definitely have their work cut out for them if they want to turn this Bitmex fud around.
This week has been marked by FUD from the Bitmex fiasco. Trading has suffered and people are mass exodusing a well known platform due to uncertainty. Its to be expected when the owner gets arrested along with 5 other higher ups in the company. I have to be honest with you I thought when I saw the news of Bitmex that the price of Bitcoin would suffer much more than it did.. But so far its been resilient. Lets hope that continues. Have a great Sunday everyone. Make good choices! WTFDIK???
TLDR: Resistance is strong but we retook the 4hr cloud. Path of least resistance is down at the moment. Lets hope the bulls can prove me wrong!