Analysis on FIRE!!! BITCOIN! (BTC)

Updated

My friends, my fans, my haters, my family, welcome to this one-of-a-kind, often imitated, but never duplicated, analysis on BITCOIN! Let's jump right in! Looking at the four hour chart, we can see that BTC has formed a bull flag consolidation just below the 200 EMA (in purple.) You can see that we're about half way up to the bull flag target, but we still have a long way to go. BTC needs to break out of this bull flag, get above the 200 EMA, and start running up toward the top of the pink downtrend channel. If LTC is any indication, this thing should eventually break out. Technically, LTC is leading the market. You can say what you want, LTC made the move first, and everyone else is following. LTC has broken out well above it's downtrend channel, and BTC looks like it wants to follow. Before we get too excited though, let's take it one step at a time. Let's breakout of the bull flag, and see what happens. You can see that the 50 EMA (in orange) is rising now, confirming the recent turn in price action. The MACD looks like it wants to crossover bearish, but that's just because of the consolidation here under the 200 EMA. If the bull flag breaks to the downside, I would immediately look to the 50 EMA as support. We really want to see BTC hold that level. I'd like to draw your attention to the green dashed trendline now. You can see that when BTC broke below it, it rallied back up and tested it a few times, confirming it as resistance. Since we've broken higher, we haven't retested that level, to confirm it as support. Retests aren't required, but if this bull flag broke down, I would imagine that we would only be reversing for a retest. For now, let's just watch this flag to see which way it breaks. I've given you the expected scenarios for either direction. I often hear people say "you called for the upside and the downside and took credit either way." No I didn't. I've always had clear longer-term targets on this chart. All of which have essentially been reached. Expert traders and analysts will always assess the upside and downside. Why focus on only one direction? If you do, you aren't properly analyzing the market, and you're creating vulnerability. I have an entry and exit strategy at all times. You should too.

This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!

***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***

-MPC loves you-

-JD-

Note

I just realized that I wrote “Bull Flag Target” on the chart. It should say “Inverse Head & Shoulders Target.”

MagicPoopCannon

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