Good morning ladies and gentlemen and welcome back to my daily analysis of Bitcoin. I pulled up one of my favorite time frames, the 4hr, and I can see the consolidation is real... We are stuck between a rock and a hard place and escaping this situation is easier said than done at this point. All though like I mentioned yesterday... I do think that we will see a big move very soon. The problem is I cant promise that move will be up. Im not clairvoyant so I rely on logic and rational thought. Lets keep that mindset and take a look at the chart this morning.
I can see that we have been wrestling with the 4hr 50 MA since the 9th of July and we are currently above the 50 MA (orange line). That is where you want to be. Being above the 50 MA is bullish while being below is bearish... But a short distance above that is the 4hr 200 MA (blue line) and we are clearly underneath it. That is bearish. The 50 MA below us is really close to being merged with the top border of the 4hr cloud so it could provide us with some support throughout this Sunday. Double support like this can be tough to break. But not impossible. With the daily bollinger bands as tight as Ive seen them in ages I am expecting something to happen.
So currently we are stuck between the 4hr 50 MA which is directly below us acting as support and the 4hr 200 MA above our heads and that is resistance at this time. This situation is almost like being inside the cloud. Very constricted movement due to solid support and resistance surrounding the candles. Right now the 4hr 50 MA and 4hr 200 MA are converging and should meet very soon at this rate. What does this mean for the candles? Well it means we should be out of this trap soon. But I cant tell you if we will end up above or below. My money is we end up below. But like I always say WTFDIK???
If a major move is going to happen it may occur after the daily and weekly close tonight. Nothing is guaranteed so dont go remortgage your home on account of this analysis folks. The halving is behind us and I dont know when (or if) that halving pump will materialize. It is the surprise factor here. With descending resistance still keeping the candles from breaking above 10k approximately at this point we have some work to do if we want to reach 5 figures again. I cant promise you anything but I will say I think we may have another descent to maybe 7k before we see another uptrend. Of course I am not clairvoyant and I cant tell the future so I could very well be wrong. I have been wrong plenty of times. But right now Im relying on logic and path of least resistance principles. Its not rocket science. The more support that is flipped to resistance the more confidence is removed from the markets and as a result if we lose much more support we could see confidence erode and as a result see that dip I keep talking about. Those bears are so lazy. I guess they are remaining indoors. Social distancing? Whatever they are up to be on your toes. I think they are plotting as I type. But then again WTFDIK??
TLDR: It isnt bear or bull season... It is Kangaroo season. I dont usually expect much to occur over the weekend but I have my eyes on the charts this weekend. We are in really tight consolidation and as a result a big move could be on the horizon... (all eyes on the daily bollinger bands)
I can see that we have been wrestling with the 4hr 50 MA since the 9th of July and we are currently above the 50 MA (orange line). That is where you want to be. Being above the 50 MA is bullish while being below is bearish... But a short distance above that is the 4hr 200 MA (blue line) and we are clearly underneath it. That is bearish. The 50 MA below us is really close to being merged with the top border of the 4hr cloud so it could provide us with some support throughout this Sunday. Double support like this can be tough to break. But not impossible. With the daily bollinger bands as tight as Ive seen them in ages I am expecting something to happen.
So currently we are stuck between the 4hr 50 MA which is directly below us acting as support and the 4hr 200 MA above our heads and that is resistance at this time. This situation is almost like being inside the cloud. Very constricted movement due to solid support and resistance surrounding the candles. Right now the 4hr 50 MA and 4hr 200 MA are converging and should meet very soon at this rate. What does this mean for the candles? Well it means we should be out of this trap soon. But I cant tell you if we will end up above or below. My money is we end up below. But like I always say WTFDIK???
If a major move is going to happen it may occur after the daily and weekly close tonight. Nothing is guaranteed so dont go remortgage your home on account of this analysis folks. The halving is behind us and I dont know when (or if) that halving pump will materialize. It is the surprise factor here. With descending resistance still keeping the candles from breaking above 10k approximately at this point we have some work to do if we want to reach 5 figures again. I cant promise you anything but I will say I think we may have another descent to maybe 7k before we see another uptrend. Of course I am not clairvoyant and I cant tell the future so I could very well be wrong. I have been wrong plenty of times. But right now Im relying on logic and path of least resistance principles. Its not rocket science. The more support that is flipped to resistance the more confidence is removed from the markets and as a result if we lose much more support we could see confidence erode and as a result see that dip I keep talking about. Those bears are so lazy. I guess they are remaining indoors. Social distancing? Whatever they are up to be on your toes. I think they are plotting as I type. But then again WTFDIK??
TLDR: It isnt bear or bull season... It is Kangaroo season. I dont usually expect much to occur over the weekend but I have my eyes on the charts this weekend. We are in really tight consolidation and as a result a big move could be on the horizon... (all eyes on the daily bollinger bands)
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.