Good morning ladies and gentlemen and welcome to my daily analysis of Bitcoin. Today I have the 4hr pulled up after a pretty flat day yesterday. We have plenty of support and resistance and as a result we are stuck in the middle with Bitcoin... We are still stuck between a rock and a hard place on the charts. Nothing Im not used to though. I do know that when the candles are stuck like this the consolidation allows the bollinger bands to tighten and then volatility follows. But will we break up out of this mess or down? Lets take a look at the chart.
I pointed out current support on the chart. A list of 3 specific areas of support that happen to be within 80 dollars of each other. This built up support encourages the bulls as 3 supports are better than one. So below us we have the 4hr 50 MA along with the top border of the 4hr cloud and the .5 fib on the chart. All around 10650. If this fails we may see a decent drop. I imagine many people have their stop losses set around this level (lower) and if we fall a domino effect may ensue due to sell offs. Im just thinking out loud. While it is nice to enjoy 3x support at 10650 we must look above us to see the resistance we must overcome to retake 11k.
Above our heads we have the daily cloud (bottom border) that has been keeping the candles underneath 10750 pretty much for the last 7-8 days. We briefly broke into the daily cloud a few times recently but ultimately succumbed to pressure and fell back out of the bottom. So as of right now the daily cloud (bottom border) is resistance. I see the daily 50 MA descending. That is a good sign. We have had trouble breaking above the daily 50 MA for the last month pretty much. Now that it is descending it is only a matter of time before we break above the resistance. I guess that is why everyone says patience is key when you trade...
I mentioned the bollinger bands earlier and I took a look at the daily bollinger bands and noticed that they are getting tighter... I smell volatility on the horizon. Being in this situation with plenty of resistance and support leaves me curious as to which way the candles will go. When I am at a point like this I tend to use all avenues to try and make my decisions easier. For example I will ask CCT if they are bearish or bullish. Polls can show you a lot. These are not presidential polls so you can take them for what they are worth. Sentiment is important.
Consolidation has been the name of the game for the last week pretty much. Boring times on the chart. Times like this really test a traders patience. But remain steadfast and stick to your plan. Stick with your stop loss. Dont keep walking it down. That is what I did when I began trading. Sometimes walking the stop loss down can be beneficial, but 9 times out of 10 you will end up in worse shape than you would have been if you simply let the stop loss trip. That is how I am. I refuse to walk my stop loss down anymore. If my stop loss trips Im out of that trade. Better luck next time. I have said it before and I will say it again. Trading is like baseball. You may strike out this time at bat but next time you could certainly hit a home run. Trading is all about minimizing losses too. You see I lose plenty. Maybe around 50% of my trades dont go as planned. But my stop loss prevents a small loss from becoming a hemorrhage. That is my entire game plan. Minimize losses while maximizing gains. How do you maximize gains? Well I said you should not walk your stop losses down. But moving them up while the candles rise is a great strategy. You lock in profit while remaining in the trade. I hope you all have a great day and make good choices folks!! WTFDIK???
TLDR: Consolidation. We have plenty of support and resistance. Rock and a hard place. Bollinger bands are tightening. Volatility is coming soon.
I pointed out current support on the chart. A list of 3 specific areas of support that happen to be within 80 dollars of each other. This built up support encourages the bulls as 3 supports are better than one. So below us we have the 4hr 50 MA along with the top border of the 4hr cloud and the .5 fib on the chart. All around 10650. If this fails we may see a decent drop. I imagine many people have their stop losses set around this level (lower) and if we fall a domino effect may ensue due to sell offs. Im just thinking out loud. While it is nice to enjoy 3x support at 10650 we must look above us to see the resistance we must overcome to retake 11k.
Above our heads we have the daily cloud (bottom border) that has been keeping the candles underneath 10750 pretty much for the last 7-8 days. We briefly broke into the daily cloud a few times recently but ultimately succumbed to pressure and fell back out of the bottom. So as of right now the daily cloud (bottom border) is resistance. I see the daily 50 MA descending. That is a good sign. We have had trouble breaking above the daily 50 MA for the last month pretty much. Now that it is descending it is only a matter of time before we break above the resistance. I guess that is why everyone says patience is key when you trade...
I mentioned the bollinger bands earlier and I took a look at the daily bollinger bands and noticed that they are getting tighter... I smell volatility on the horizon. Being in this situation with plenty of resistance and support leaves me curious as to which way the candles will go. When I am at a point like this I tend to use all avenues to try and make my decisions easier. For example I will ask CCT if they are bearish or bullish. Polls can show you a lot. These are not presidential polls so you can take them for what they are worth. Sentiment is important.
Consolidation has been the name of the game for the last week pretty much. Boring times on the chart. Times like this really test a traders patience. But remain steadfast and stick to your plan. Stick with your stop loss. Dont keep walking it down. That is what I did when I began trading. Sometimes walking the stop loss down can be beneficial, but 9 times out of 10 you will end up in worse shape than you would have been if you simply let the stop loss trip. That is how I am. I refuse to walk my stop loss down anymore. If my stop loss trips Im out of that trade. Better luck next time. I have said it before and I will say it again. Trading is like baseball. You may strike out this time at bat but next time you could certainly hit a home run. Trading is all about minimizing losses too. You see I lose plenty. Maybe around 50% of my trades dont go as planned. But my stop loss prevents a small loss from becoming a hemorrhage. That is my entire game plan. Minimize losses while maximizing gains. How do you maximize gains? Well I said you should not walk your stop losses down. But moving them up while the candles rise is a great strategy. You lock in profit while remaining in the trade. I hope you all have a great day and make good choices folks!! WTFDIK???
TLDR: Consolidation. We have plenty of support and resistance. Rock and a hard place. Bollinger bands are tightening. Volatility is coming soon.
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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.