Good morning everyone and welcome back to my daily analysis of Bitcoin. Today I have the 4hr pulled up after a pretty bad weekend in terms of price action. There are always 2 sides to every coin though and cheaper BTC will eventually drive the price back up once again. In the mean time we are sitting here back underneath the 5 digit Bitcoin that made so many of my cohorts quit their jobs at McDonalds thanks to the pump. Looks like its back to that 9-5 unfortunately for now... Lets take a look at the chart.
The first thing I want to discuss is the fact that 9900 has been acting as short term support. We have wicked below the 9900 level but recovered to just above the support. It isnt very solid looking if you ask me and we could dip even further. There is a 300 dollar gap just below us as well which could very well get filled this week. There is some descending support in the 2.5 year trend line I have pointed out on the chart. This should keep us above 9300 for the time being. But the bears are relentless with this drop so dont forget to set a stop loss if you are crazy enough to long this.
I dont see a gap on the CME. But there is a holiday in the USA today so the CME may not really show the gap til tomorrow. I just dont have enough experience with the CME charts so I am still learning how holidays work. I imagine that Chicago Mercantile Exchange is closed thanks to labor day therefore the gap should materialize on the chart tomorrow. I could be wrong though. If you do know how this works please let me know in the comments below.
On the daily we had been trying to break back into the daily cloud all weekend. Just below 10400 where the bottom border of the daily cloud lies we were continuously rejected on each attempt to retake lost ground. So it looks like the candles are retreating to live to fight another day. The resistance above our head such as the daily 50 MA and the daily cloud along with the 4hr 50 MA and the 4hr 200 MA and the 4hr cloud that tends to take some of the enthusiasm out of the trading scene. Typically when you are above these indicators things are generally more bullish. Since we are below confidence will suffer and these red candles will continue to plague us.
Its not really so bad that BTC is cheaper. Its an opportunity. This market has proven to be cyclical and as a result what goes up comes down. What goes down eventually goes back up. These cycles are important for traders to be able to identify. I saw people that were asking if they should remortgage their home to invest in BTC. This was maybe 2 weeks prior to the dump we are currently experiencing. Imagine if that person went through with it? Lets just say they got a 100k loan using their home as a collateral. BIG MISTAKE. Now Bitcoin has dropped nearly 15% - 20% and now you only have 85k - 80k. That is a big loss folks. Dont ever get a loan to invest or trade. Its just a bad idea. I have a million other stories like this too. Never trade without a stop loss. Its like jumping from a plane without a backup parachute. I am sorry if I am coming off as condescending as that is not my intention. I just hate seeing people I know lose $$$. Have a great day everyone and make good choices! WTFDIK????
TLDR: Bye Bye 10k it has been fun
The first thing I want to discuss is the fact that 9900 has been acting as short term support. We have wicked below the 9900 level but recovered to just above the support. It isnt very solid looking if you ask me and we could dip even further. There is a 300 dollar gap just below us as well which could very well get filled this week. There is some descending support in the 2.5 year trend line I have pointed out on the chart. This should keep us above 9300 for the time being. But the bears are relentless with this drop so dont forget to set a stop loss if you are crazy enough to long this.
I dont see a gap on the CME. But there is a holiday in the USA today so the CME may not really show the gap til tomorrow. I just dont have enough experience with the CME charts so I am still learning how holidays work. I imagine that Chicago Mercantile Exchange is closed thanks to labor day therefore the gap should materialize on the chart tomorrow. I could be wrong though. If you do know how this works please let me know in the comments below.
On the daily we had been trying to break back into the daily cloud all weekend. Just below 10400 where the bottom border of the daily cloud lies we were continuously rejected on each attempt to retake lost ground. So it looks like the candles are retreating to live to fight another day. The resistance above our head such as the daily 50 MA and the daily cloud along with the 4hr 50 MA and the 4hr 200 MA and the 4hr cloud that tends to take some of the enthusiasm out of the trading scene. Typically when you are above these indicators things are generally more bullish. Since we are below confidence will suffer and these red candles will continue to plague us.
Its not really so bad that BTC is cheaper. Its an opportunity. This market has proven to be cyclical and as a result what goes up comes down. What goes down eventually goes back up. These cycles are important for traders to be able to identify. I saw people that were asking if they should remortgage their home to invest in BTC. This was maybe 2 weeks prior to the dump we are currently experiencing. Imagine if that person went through with it? Lets just say they got a 100k loan using their home as a collateral. BIG MISTAKE. Now Bitcoin has dropped nearly 15% - 20% and now you only have 85k - 80k. That is a big loss folks. Dont ever get a loan to invest or trade. Its just a bad idea. I have a million other stories like this too. Never trade without a stop loss. Its like jumping from a plane without a backup parachute. I am sorry if I am coming off as condescending as that is not my intention. I just hate seeing people I know lose $$$. Have a great day everyone and make good choices! WTFDIK????
TLDR: Bye Bye 10k it has been fun
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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.