Good morning again ladies and gentlemen and welcome back to my daily analysis of Bitcoin. Today I have the 4hr time frame pulled up after losing a bit of ground yesterday. No big deal. The weekend is typically a bit more quiet so this should not be a surprise to anyone. The bulls worked very hard over the past few weeks and pushed us to a new yearly high. But where do we go from here? I dont have a crystal ball, but I do have plenty of logic. So lets look at what the chart is telling us.
That 4hr 50 MA has proven to be some strong support. It has held up as support since we dipped to 10500 on August 1st. We have tons of support below us when you cycle through the major time frames. When the candles are above my trading set up its bullish. (My trading setup includes the Ichimoku cloud, the 50 MA and the 200 MA. I use the RSI and Bollinger bands as well but they are not like the cloud or the MA's I just mentioned. After breaking the 2.5 year resistance a few weeks ago the bulls have taken over. But dont ever count the bears out. They are plotting their revenge as I type.
The weekly closes tonight and from the looks of it we will not be eclipsing last weeks high of 12135. No big deal. These markets are cyclical and traders take profit. Its just a fact. These markets lack liquidity if everyone just sat on their BTC. So traders and long term investors sort of scratch each others backs. I can see an ascending triangle forming on the chart that isnt the best defined by any means. But I still pointed it out. If we close the weekend out lower than it began a gap should form on the CME right above us and that could fill as early as Monday. The gap from last weekend filled in less than 7 days. I would say a gap typically fills within a week of forming. Most fill within a day or 2. There are a few gaps below us I will point out. One at 3600, one at 7600, one between 9600 - 9900. Those are the only gaps I know of on the chart. Im not telling you this to frighten you. I told you this so you are aware of your surroundings.
The ascending triangle tends to break up. But only time will tell. Like I said this isnt the perfect example of a defined triangle by any means but some of that can be attributed to the 4hr 50 MA crossing right through the middle of the pattern. The reason why I am starting to watch this development is the fact that the 4hr bollinger bands are also beginning to squeeze... We all know what that means dont we??? Volatility is coming. With all this bullishness I want to say we go up but only time will tell for sure. The best advice I can give is do what I do. Go long and set a strict stop loss. Let the chips fall where they may.
We can easily create a higher high if the breakout I mentioned earlier is a bullish one. If we drop I see the 4hr cloud below us which could provide cushion for the candles. The RSI is looking better on the 4hr (if you are a bull that is) and has retreated far enough from the over bought territory to entice the bulls. Looking at landing spots in the event of a drop the top of the 4hr cloud would be around 11200 -11300. Above that we have the 4hr 50 MA at 11500. We have tons of support below us and that has to instill confidence in this market. If we close today with a gap above us that could be the catalyst to start Monday off with a bang. Either way I am still very optimistic when it comes to Bitcoin. I hope you all have a great Sunday... Make good choices! WTFDIK???
TLDR: Im still bullish. We have tons of support below us. We seem to be forming (sort of) an ascending triangle which could lead to higher highs. Only time will tell. 4hr bollinger bands are squeezing. Monday could be good if the bulls wake their butts up.
That 4hr 50 MA has proven to be some strong support. It has held up as support since we dipped to 10500 on August 1st. We have tons of support below us when you cycle through the major time frames. When the candles are above my trading set up its bullish. (My trading setup includes the Ichimoku cloud, the 50 MA and the 200 MA. I use the RSI and Bollinger bands as well but they are not like the cloud or the MA's I just mentioned. After breaking the 2.5 year resistance a few weeks ago the bulls have taken over. But dont ever count the bears out. They are plotting their revenge as I type.
The weekly closes tonight and from the looks of it we will not be eclipsing last weeks high of 12135. No big deal. These markets are cyclical and traders take profit. Its just a fact. These markets lack liquidity if everyone just sat on their BTC. So traders and long term investors sort of scratch each others backs. I can see an ascending triangle forming on the chart that isnt the best defined by any means. But I still pointed it out. If we close the weekend out lower than it began a gap should form on the CME right above us and that could fill as early as Monday. The gap from last weekend filled in less than 7 days. I would say a gap typically fills within a week of forming. Most fill within a day or 2. There are a few gaps below us I will point out. One at 3600, one at 7600, one between 9600 - 9900. Those are the only gaps I know of on the chart. Im not telling you this to frighten you. I told you this so you are aware of your surroundings.
The ascending triangle tends to break up. But only time will tell. Like I said this isnt the perfect example of a defined triangle by any means but some of that can be attributed to the 4hr 50 MA crossing right through the middle of the pattern. The reason why I am starting to watch this development is the fact that the 4hr bollinger bands are also beginning to squeeze... We all know what that means dont we??? Volatility is coming. With all this bullishness I want to say we go up but only time will tell for sure. The best advice I can give is do what I do. Go long and set a strict stop loss. Let the chips fall where they may.
We can easily create a higher high if the breakout I mentioned earlier is a bullish one. If we drop I see the 4hr cloud below us which could provide cushion for the candles. The RSI is looking better on the 4hr (if you are a bull that is) and has retreated far enough from the over bought territory to entice the bulls. Looking at landing spots in the event of a drop the top of the 4hr cloud would be around 11200 -11300. Above that we have the 4hr 50 MA at 11500. We have tons of support below us and that has to instill confidence in this market. If we close today with a gap above us that could be the catalyst to start Monday off with a bang. Either way I am still very optimistic when it comes to Bitcoin. I hope you all have a great Sunday... Make good choices! WTFDIK???
TLDR: Im still bullish. We have tons of support below us. We seem to be forming (sort of) an ascending triangle which could lead to higher highs. Only time will tell. 4hr bollinger bands are squeezing. Monday could be good if the bulls wake their butts up.
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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.