Good morning everyone and welcome back to my daily analysis of Bitcoin. Today I have the 4hr time frame pulled up after a tumble over night. No sweat though huh bulls? I mean we are still above 9400 and holding steady currently. We fell back below some key support flipping it back to resistance. The infamous Bart Pattern strikes again (you go up and move sideways a bit and dump) Can we buck this loss of confidence and break through the resistance that lies above us? Lets take a look at what the chart tell us.
Less than 8 hours ago we touched 9300 which was the lowest point of this dip. This dip saw us drop below the 4hr cloud once again which is bearish. But we have since recovered back above the cloud which is nice but if you ask me its not enough to keep the bears at bay. We are still below the 4hr 50 MA and the 4hr 200 MA. Being below both of these key indicators is considered bearish. Also look at both of the indicators. They are pretty much merged into one uber resistance at this time. The 50 MA moves more than the 200 MA so I dont imagine this built up resistance will last forever. But for now breaking above 9450 is going to be easier said than done thanks to the build up of resistance.
Looking at the daily time frame I see we dropped back to the same tight area between the daily cloud and the daily 50 MA. We were stuck between these 2 indicators 3 out of the last 6 days and we fell right back into the tight confined area. The thing is that daily cloud that will likely provide support if we drop a bit is ascending. This means that it will soon intersect with that daily 50 MA which means we either walk up the cloud when the time comes or we fall into the cloud thanks to the overwhelming pressure of the daily 50 MA. Let me tell you both indicators are dependable and I rely on both often. Therefore its basically a shoot out between these 2 indicators. We have a time frame of 4-5 days before this becomes a reality but be ready for anything as the market will sometimes react prematurely to an event like this. Basically set a stop loss if you desire to be in a position at this time.
If we can keep the 4hr cloud below our feet we shouldnt drop below 9300 today. But that is a big IF. The west will awaken soon and sometimes when traders see the drop they may sell their bags to ensure they dont lose anymore of their profit. This causes negative fomo and knee jerk selling commences. Ive seen it a million times. We still have plenty of support below us and I will name a few... The weekly cloud (top border), the weekly 50 MA, the daily cloud, the daily 200 MA, The 4hr cloud etc... Im not telling you this so you remortgage your home and go all in... Quite the contrary. I just want you to be aware of where support may show its face in the near future. If the markets are anything they are unpredictable.
I feel like a weather man at times. People hoist me up on their shoulders when I make a good call but I sure hear about it when I make the wrong ones too. Its all good though. I put myself in this position by publicly sharing my charts. The best advice I can give to everyone of you is learning to trade is more than just getting profit. Learn to mitigate that risk. Cut your losses. I trade with USDT (and other stable coins) which is (in my opinion) much safer than leverage trading. You can make a LOT of money trading with leverage... Dont get me wrong. But its easier to get liquidated and lose your bag. Of course you can set a stop loss on Bitmex as well so once you perfected the art of the stop loss perhaps you could give leverage a shot. Just dont get burned. There is a test net that one can utilize to learn to use Bitmex without having to invest anything. I think it gives you like .1 Bitcoin to start with and you learn the basics. Ive messed with it a few times and even won a few trades. But I can stable coin trade much better and more confidently. I know that I cannot get liquidated when I USDT trade. Even if the bottom drops out and my stop loss didnt trip. (It happens more often than you think apparently) I can only imagine what it feels like waking up and logging onto your laptop to discover you lost everything. I know someone that lost 100 Bitcoin in one foul swoop so dont be that guy... Learn from others mistakes. Lets see if the bulls can scare away those clouds and make it a sunshiny day. But WTFDIK right?
TLDR: 100 years ago an OZ of gold could buy you a nice suit. Today an OZ of gold can buy you a really nice suit. 10 years ago 1 Bitcoin could buy you a used Matchbox car. Today 1 Bitcoin can nice used car. 10 years from now where will we be?
Less than 8 hours ago we touched 9300 which was the lowest point of this dip. This dip saw us drop below the 4hr cloud once again which is bearish. But we have since recovered back above the cloud which is nice but if you ask me its not enough to keep the bears at bay. We are still below the 4hr 50 MA and the 4hr 200 MA. Being below both of these key indicators is considered bearish. Also look at both of the indicators. They are pretty much merged into one uber resistance at this time. The 50 MA moves more than the 200 MA so I dont imagine this built up resistance will last forever. But for now breaking above 9450 is going to be easier said than done thanks to the build up of resistance.
Looking at the daily time frame I see we dropped back to the same tight area between the daily cloud and the daily 50 MA. We were stuck between these 2 indicators 3 out of the last 6 days and we fell right back into the tight confined area. The thing is that daily cloud that will likely provide support if we drop a bit is ascending. This means that it will soon intersect with that daily 50 MA which means we either walk up the cloud when the time comes or we fall into the cloud thanks to the overwhelming pressure of the daily 50 MA. Let me tell you both indicators are dependable and I rely on both often. Therefore its basically a shoot out between these 2 indicators. We have a time frame of 4-5 days before this becomes a reality but be ready for anything as the market will sometimes react prematurely to an event like this. Basically set a stop loss if you desire to be in a position at this time.
If we can keep the 4hr cloud below our feet we shouldnt drop below 9300 today. But that is a big IF. The west will awaken soon and sometimes when traders see the drop they may sell their bags to ensure they dont lose anymore of their profit. This causes negative fomo and knee jerk selling commences. Ive seen it a million times. We still have plenty of support below us and I will name a few... The weekly cloud (top border), the weekly 50 MA, the daily cloud, the daily 200 MA, The 4hr cloud etc... Im not telling you this so you remortgage your home and go all in... Quite the contrary. I just want you to be aware of where support may show its face in the near future. If the markets are anything they are unpredictable.
I feel like a weather man at times. People hoist me up on their shoulders when I make a good call but I sure hear about it when I make the wrong ones too. Its all good though. I put myself in this position by publicly sharing my charts. The best advice I can give to everyone of you is learning to trade is more than just getting profit. Learn to mitigate that risk. Cut your losses. I trade with USDT (and other stable coins) which is (in my opinion) much safer than leverage trading. You can make a LOT of money trading with leverage... Dont get me wrong. But its easier to get liquidated and lose your bag. Of course you can set a stop loss on Bitmex as well so once you perfected the art of the stop loss perhaps you could give leverage a shot. Just dont get burned. There is a test net that one can utilize to learn to use Bitmex without having to invest anything. I think it gives you like .1 Bitcoin to start with and you learn the basics. Ive messed with it a few times and even won a few trades. But I can stable coin trade much better and more confidently. I know that I cannot get liquidated when I USDT trade. Even if the bottom drops out and my stop loss didnt trip. (It happens more often than you think apparently) I can only imagine what it feels like waking up and logging onto your laptop to discover you lost everything. I know someone that lost 100 Bitcoin in one foul swoop so dont be that guy... Learn from others mistakes. Lets see if the bulls can scare away those clouds and make it a sunshiny day. But WTFDIK right?
TLDR: 100 years ago an OZ of gold could buy you a nice suit. Today an OZ of gold can buy you a really nice suit. 10 years ago 1 Bitcoin could buy you a used Matchbox car. Today 1 Bitcoin can nice used car. 10 years from now where will we be?
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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.