Good morning everyone and welcome back to my daily analysis of Bitcoin. Today I have the 4hr time frame pulled up early on a Monday morning and I can see we are still around the same level we were during my analysis yesterday. Nothing major has occurred in 24 hours. But that could certainly change today. We filled in an age old gap over the weekend (11800) and created a new yearly high. We did see a little profit taking this weekend but nothing we are not used to in the Bitcoin community. That is what makes the markets liquid after all. Anyways lets take a look at the chart.
First thing I want to bring up is the newest gap we created this weekend. While we did fill the over 1 year old gap when we eclipsed 12k briefly. Nice work bulls. I have been waiting for that gap to fill. Not long after that we saw a big red candle. We dropped from 12200 or so down to 10500. All in a days work for BTC. If you are not used to that by now perhaps you should stick to collecting baseball cards. Bitcoin is a fickle SOB when it dumps but its every traders best friend when it takes off. In all this commotion we ended up creating a brand new gap. It lies between 11480 and 11520. Not a huge gap by any means but its still there and we should all be aware. Most gaps tend to fill quickly. I would say 97% of them fill within the first week of forming. The drop over the weekend took some of the wind out of the crypto community but today could be different if we can pump back to 11500+.
We are clearly following the 50 MA up the chart. The drop over the weekend was ended thanks to the support of the 4hr 50 MA . We dropped to 10500 which has proven itself as support a few times since we started this glorious pump to 12200. According to my trading setup we are in clear bull territory. We have the support of the 50 MA and the 200 MA along with the Ichi cloud on the daily the 4hr and the weekly. Being above these key indicators is bullish. Not to mention the fact we recently broke 2.5 year resistance and the halving happened a few months ago. If you are a bear please tell me your reasoning. Im not saying you are wrong, I just want to know what you are looking at because perhaps I missed something.
Just because Im bullish doesnt mean we keep rising. You should always do everything you can to prevent yourself from becoming a victim of the bears. Set a stop loss. Does a stop loss always work? Not always. But neither does a back up parachute but I would still prefer to use one if Im skydiving. Develop a strategy. Trial and error will show you where to set a stop loss. Every trader is different and that means stop losses will likely be different. It really just depends on your level of comfort.
11200. That is where we currently reside. Not too shabby if you ask me. If we can muscle our way up from this level and fill in the gap at 11480 - 11520 we will have the support of the .236 fib and that could initiate more fomo. You know how the markets react to big green candles. People try to chase the candles. Chasing green candles isnt the best strategy but it does pay off occasionally I suppose. But trying to chase pumps will get you rekt too. I saw a post where someone said their friend was going to remortgage his home to buy some BTC. The next frickin day we dropped to 10500 from 12200. I love BTC and I think everyone should own some, but I think risking your home on a speculative investment is ignorant. Can you make a lot of money? Sure! But you can also lose your home. Only invest what you can afford to lose. Its not rocket science folks. Imagine if he had bought at 12200. He would have lost 10% or more of his investment in a matter of hours. Especially if he panic sells like all noobs do. Take this as a lesson folks. Dont get burned. Make good choices! WTFDIK?
TLDR: Bitcoin has a gap above us that could see us reach 11500 or so. Dont trade cold comfort for change. Dont invest more than you are ready to lose. BTC is speculative and all investments come with inherent risks.
First thing I want to bring up is the newest gap we created this weekend. While we did fill the over 1 year old gap when we eclipsed 12k briefly. Nice work bulls. I have been waiting for that gap to fill. Not long after that we saw a big red candle. We dropped from 12200 or so down to 10500. All in a days work for BTC. If you are not used to that by now perhaps you should stick to collecting baseball cards. Bitcoin is a fickle SOB when it dumps but its every traders best friend when it takes off. In all this commotion we ended up creating a brand new gap. It lies between 11480 and 11520. Not a huge gap by any means but its still there and we should all be aware. Most gaps tend to fill quickly. I would say 97% of them fill within the first week of forming. The drop over the weekend took some of the wind out of the crypto community but today could be different if we can pump back to 11500+.
We are clearly following the 50 MA up the chart. The drop over the weekend was ended thanks to the support of the 4hr 50 MA . We dropped to 10500 which has proven itself as support a few times since we started this glorious pump to 12200. According to my trading setup we are in clear bull territory. We have the support of the 50 MA and the 200 MA along with the Ichi cloud on the daily the 4hr and the weekly. Being above these key indicators is bullish. Not to mention the fact we recently broke 2.5 year resistance and the halving happened a few months ago. If you are a bear please tell me your reasoning. Im not saying you are wrong, I just want to know what you are looking at because perhaps I missed something.
Just because Im bullish doesnt mean we keep rising. You should always do everything you can to prevent yourself from becoming a victim of the bears. Set a stop loss. Does a stop loss always work? Not always. But neither does a back up parachute but I would still prefer to use one if Im skydiving. Develop a strategy. Trial and error will show you where to set a stop loss. Every trader is different and that means stop losses will likely be different. It really just depends on your level of comfort.
11200. That is where we currently reside. Not too shabby if you ask me. If we can muscle our way up from this level and fill in the gap at 11480 - 11520 we will have the support of the .236 fib and that could initiate more fomo. You know how the markets react to big green candles. People try to chase the candles. Chasing green candles isnt the best strategy but it does pay off occasionally I suppose. But trying to chase pumps will get you rekt too. I saw a post where someone said their friend was going to remortgage his home to buy some BTC. The next frickin day we dropped to 10500 from 12200. I love BTC and I think everyone should own some, but I think risking your home on a speculative investment is ignorant. Can you make a lot of money? Sure! But you can also lose your home. Only invest what you can afford to lose. Its not rocket science folks. Imagine if he had bought at 12200. He would have lost 10% or more of his investment in a matter of hours. Especially if he panic sells like all noobs do. Take this as a lesson folks. Dont get burned. Make good choices! WTFDIK?
TLDR: Bitcoin has a gap above us that could see us reach 11500 or so. Dont trade cold comfort for change. Dont invest more than you are ready to lose. BTC is speculative and all investments come with inherent risks.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.