Good morning everyone and welcome back to my daily analysis of Bitcoin. Today I pulled up the 4hr as it is really working well with my trading set up. A lot happened yesterday and while some of it was bullish I will refrain from celebrations until we are really out of the clouds. Literally and figuratively. Bitcoin is flat out refusing to let us go below 9k. We have a few times over the past few months but not for long. The bulls seem hell bent at keeping us above 9k. Will they outlast the bears or will we ultimately fall? Lets take a look at the chart.
I noticed we retook the 4hr 50 MA. That is quite an accomplishment as we had some pretty stiff resistance where we broke through. Now that pesky 4hr 50 MA is now support once again. Nice work bulls. But can it last? Im not too optimistic at this point in time. Im watching closely for anything to develop. With us breaking the 4hr 50 MA you would expect a little bullish action but the 4hr cloud was directly above that. This hindered the candles from breaking any further than that 4hr cloud.
Now we reside inside of that 4hr cloud with the 4hr 50 MA as support. It seems to be fleeting to me as we are in an ascending wedge pattern Ive drawn on the chart. These patterns are typically bearish in nature therefore Im expecting a drop sooner rather than later. Ive been bearish for a while now as you all probably have picked up on but the dump just has not materialized. You can blame it on the halving or blame it on whatever. The magic number we need to beat is somewhere between 10100 - 10200 in my opinion. This is where the 2.5 year descending resistance lies. If we can beat that I will be bullish af.
The 4hr cloud that trapped the candles within its borders dips all the way to 9k within the next three 4hr candles and if we follow the 4hr 50 MA down riding the support we will encounter the bottom border of the cloud that could provide support to the candles as well . This could keep us above 9k a bit longer than I expected. It is bullish to be above the 50 MA on any time frame but bearish to be below the cloud. Even within the cloud is definitely not bullish.
But we all know what Bitcoin is capable of so be on your toes if you desire to be in a position. The bears are just waiting for their moment I guess. Meanwhile the bulls seem unable to hurdle that descending resistance I bring up quite often. I see this as being the catalyst for bull season. I know we went from 3800 to 10400 in a few months but to me that was more of a recovery than a pump. We were sitting around 8k before that pandemic hit and recovered very shortly after. No matter how you slice it we are between a rock and a hard place with this descending resistance breathing down our necks. We either conquer it soon or we follow it down. No way around that. Hopefully the bulls can pull a rabbit from a hat and hit that grand slam we all want to see. But WTFDIK right???
TLDR: Ascending wedge could mean a break down is on the horizon. Set that stop loss! Have a great day everyone and thank you so much for your continued support!
I noticed we retook the 4hr 50 MA. That is quite an accomplishment as we had some pretty stiff resistance where we broke through. Now that pesky 4hr 50 MA is now support once again. Nice work bulls. But can it last? Im not too optimistic at this point in time. Im watching closely for anything to develop. With us breaking the 4hr 50 MA you would expect a little bullish action but the 4hr cloud was directly above that. This hindered the candles from breaking any further than that 4hr cloud.
Now we reside inside of that 4hr cloud with the 4hr 50 MA as support. It seems to be fleeting to me as we are in an ascending wedge pattern Ive drawn on the chart. These patterns are typically bearish in nature therefore Im expecting a drop sooner rather than later. Ive been bearish for a while now as you all probably have picked up on but the dump just has not materialized. You can blame it on the halving or blame it on whatever. The magic number we need to beat is somewhere between 10100 - 10200 in my opinion. This is where the 2.5 year descending resistance lies. If we can beat that I will be bullish af.
The 4hr cloud that trapped the candles within its borders dips all the way to 9k within the next three 4hr candles and if we follow the 4hr 50 MA down riding the support we will encounter the bottom border of the cloud that could provide support to the candles as well . This could keep us above 9k a bit longer than I expected. It is bullish to be above the 50 MA on any time frame but bearish to be below the cloud. Even within the cloud is definitely not bullish.
But we all know what Bitcoin is capable of so be on your toes if you desire to be in a position. The bears are just waiting for their moment I guess. Meanwhile the bulls seem unable to hurdle that descending resistance I bring up quite often. I see this as being the catalyst for bull season. I know we went from 3800 to 10400 in a few months but to me that was more of a recovery than a pump. We were sitting around 8k before that pandemic hit and recovered very shortly after. No matter how you slice it we are between a rock and a hard place with this descending resistance breathing down our necks. We either conquer it soon or we follow it down. No way around that. Hopefully the bulls can pull a rabbit from a hat and hit that grand slam we all want to see. But WTFDIK right???
TLDR: Ascending wedge could mean a break down is on the horizon. Set that stop loss! Have a great day everyone and thank you so much for your continued support!
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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.