Good morning ladies and gentlemen and welcome back to my daily analysis of Bitcoin. Today I pulled up the 4hr after creating a new ATH only to be dashed by a significant drop. Lots of traders were left scratching their heads and wondering why they woke up to liquidation. Well that is what happens when you refuse to set a stop loss. This dump happened in the middle of the night and not very many traders in the west were up to react to it. I see a few good developments after the drop I will go over later in the analysis. Lets take a look at the chart.
First of all 10500 held once again. It was the ATH for the year before this recent pump started. So I look to this level for support. It has already proven it is support 2 time since we climbed to a new ATH. The dump to 10500 was followed by a slight recovery to 11100 where we sit currently. It is really nice to see the market is still holding these levels. There are a few factors that have me looking down on the chart but there are also more bullish factors that could send us to the moon if things go right.
The RSI is now far from overbought on the 4hr time frame. This could very well be a sort of a "refuel" before the next pump. RSI was extremely over bought before the dump over night and when the RSI is so high it can signal a drop coming. The bears finally struck back last night. We saw a pretty decent drop right after we filled in the 15 month old gap at around 11800. I have been speaking of this gap for ages and its finally gone. Now the only gaps I see are below us at 9600 - 9900 then one at 7600 and one at 3600.
Now I am not telling you about these gaps to scare you. Rather prepare you. Set a stop loss. Dont get rekt by refusing to take profit or bow out gracefully. Even so we didnt drop too much over night... We are still at 5 figure BTC and Im still hoping for the best while always expecting the worst. As the west wakes up we will see how they react to cheaper BTC. We may see more sell off if people wake up and dont like what they see. I think there has been enough recovery since retesting 10500 to quell the fomo sells but only time will tell.
We may see a gap tomorrow that will likely be above us if things work out right. That could see us reclaim some of the lost ground from last night. Meanwhile the moon is still within reach. At least for now anyways. The 2.5 year resistance is now support (pretty far below us) and we have the cloud and the 50 MA and the 200 MA below us on the major time frames I analyze. That is bullish AF. The halving is also well at our backs so this pump could certainly live on. Only time will tell for sure though.
If you got liquidated last night I hope you didnt lose too much. Take it as a lesson. Set a stop loss. I cant tell you where. Set it just below the nearest support and learn your comfort levels. A stop loss is sort of fluid as it is different for every trader. Find what helps you sleep at night and never take being stopped out as a loss. That is what a stop loss is for after all. I will tell you all right now I lose around 50% of my trades but the stop loss saves me from losing much. That is my strategy. Minimize losses while walking the stop loss up on a pump to lock in the gains. It has worked surprisingly well for me and with a little effort it can work for anyone. Im no rocket scientist by any means so the fact I can accomplish this proves to me that anyone can. I hope you all have a great Sunday... Make good choices! WTFDIK???
TLDR: Pump dump... Lets see another pump. We filled in the gap at 11800 last night. We also created a new yearly ATH. 12140ish. That is a win as far as I am concerned. Set a stop loss for the love of God. Too many traders got liquidated last night!
First of all 10500 held once again. It was the ATH for the year before this recent pump started. So I look to this level for support. It has already proven it is support 2 time since we climbed to a new ATH. The dump to 10500 was followed by a slight recovery to 11100 where we sit currently. It is really nice to see the market is still holding these levels. There are a few factors that have me looking down on the chart but there are also more bullish factors that could send us to the moon if things go right.
The RSI is now far from overbought on the 4hr time frame. This could very well be a sort of a "refuel" before the next pump. RSI was extremely over bought before the dump over night and when the RSI is so high it can signal a drop coming. The bears finally struck back last night. We saw a pretty decent drop right after we filled in the 15 month old gap at around 11800. I have been speaking of this gap for ages and its finally gone. Now the only gaps I see are below us at 9600 - 9900 then one at 7600 and one at 3600.
Now I am not telling you about these gaps to scare you. Rather prepare you. Set a stop loss. Dont get rekt by refusing to take profit or bow out gracefully. Even so we didnt drop too much over night... We are still at 5 figure BTC and Im still hoping for the best while always expecting the worst. As the west wakes up we will see how they react to cheaper BTC. We may see more sell off if people wake up and dont like what they see. I think there has been enough recovery since retesting 10500 to quell the fomo sells but only time will tell.
We may see a gap tomorrow that will likely be above us if things work out right. That could see us reclaim some of the lost ground from last night. Meanwhile the moon is still within reach. At least for now anyways. The 2.5 year resistance is now support (pretty far below us) and we have the cloud and the 50 MA and the 200 MA below us on the major time frames I analyze. That is bullish AF. The halving is also well at our backs so this pump could certainly live on. Only time will tell for sure though.
If you got liquidated last night I hope you didnt lose too much. Take it as a lesson. Set a stop loss. I cant tell you where. Set it just below the nearest support and learn your comfort levels. A stop loss is sort of fluid as it is different for every trader. Find what helps you sleep at night and never take being stopped out as a loss. That is what a stop loss is for after all. I will tell you all right now I lose around 50% of my trades but the stop loss saves me from losing much. That is my strategy. Minimize losses while walking the stop loss up on a pump to lock in the gains. It has worked surprisingly well for me and with a little effort it can work for anyone. Im no rocket scientist by any means so the fact I can accomplish this proves to me that anyone can. I hope you all have a great Sunday... Make good choices! WTFDIK???
TLDR: Pump dump... Lets see another pump. We filled in the gap at 11800 last night. We also created a new yearly ATH. 12140ish. That is a win as far as I am concerned. Set a stop loss for the love of God. Too many traders got liquidated last night!
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.