Good morning all and welcome to my daily analysis of Bitcoin. Today I have the 4hr pulled up again mainly because my trading set up is working very well on the 4hr time frame. The daily is an important time frame no doubt but the 4hr just has more to see in terms of my layout (50 MA, 200 MA, ichi cloud). We are still chugging along in a flat line of consolidation which is boring but and not very profitable for the bears or the bulls. But I think this may be the calm before the storm and I will explain why in a bit. So buckle up folks and get ready to have your minds blown :) lets take a look at the chart.
First of all I assumed we would escape the 4hr cloud yesterday and either be below it or above it due to the small break in the cloud. It got so thin in this fleeting few hours I assumed the candles would never stay inside the cloud in a million years. But being the contrarian that BTC can be the candles somehow managed to remain inside the cloud somehow. I mean the gap in the cloud was less than 40 dollars though an entire 24 hour period and we stayed in that range! A few wicks did break below and above but ultimately we closed every candle within the confines of the cloud. This is why I like to use the cloud. If anything its reliable. One of the most reliable indicators I have ever used.
2nd I threw on the MACD onto the chart today. Ive never been a huge fan of the MACD tool but I must admit I have not really used it much so I figured I would give it a look today and add something new to the mix. So just from looking at the MACD the blue line being above the orange line is bullish and when the orange line is above the blue its bearish. This indicator isnt fool proof by any means but many of my friends and tutors throughout my time in TA resorted to using the MACD with success. Right now the blue line is just above the orange and that is bullish. But its not very far and just a slight dip and things are bearish.
Looking at the bollinger bands on the chart and we can see that they are very tight and have been for a while now. Last time the bands got tight like this is was only for half the time and we broke up from 9500 to 10400. Im not promising those results again because the bollinger bands dont tell you which way the break out will happen but they do tell you volatility is on the horizon and something should happen quite soon I imagine. We are in the cloud (4hr) and that isnt particularly bullish but we do have the 4hr 50 MA supporting us currently. Not to mention we are above the weekly cloud for the first time in 6 months so I can see why sentiment is currently mixed. One guy says up and the other says down.
At the end of today I wouldnt be surprised to see a decent move in the market. It may not be today but those bollinger bands certainly suggest something is coming. I would proceed with caution my friends. Set a stop loss if you want to long this. There is no reason to trade without a plan so make a plan and stick to it. I used to trade without a solid plan and my profits suffered as a result. An idiot with a plan will do better than a brilliant person without a plan. But then again WTFDIK right?
TLDR: MACD is bullish but just barely... We are in the 4hr cloud which isnt bearish but it certainly isnt bullish either. We have a lot of support below us. The bollinger bands are very tight. Something is coming. Bring an umbrella just in case
First of all I assumed we would escape the 4hr cloud yesterday and either be below it or above it due to the small break in the cloud. It got so thin in this fleeting few hours I assumed the candles would never stay inside the cloud in a million years. But being the contrarian that BTC can be the candles somehow managed to remain inside the cloud somehow. I mean the gap in the cloud was less than 40 dollars though an entire 24 hour period and we stayed in that range! A few wicks did break below and above but ultimately we closed every candle within the confines of the cloud. This is why I like to use the cloud. If anything its reliable. One of the most reliable indicators I have ever used.
2nd I threw on the MACD onto the chart today. Ive never been a huge fan of the MACD tool but I must admit I have not really used it much so I figured I would give it a look today and add something new to the mix. So just from looking at the MACD the blue line being above the orange line is bullish and when the orange line is above the blue its bearish. This indicator isnt fool proof by any means but many of my friends and tutors throughout my time in TA resorted to using the MACD with success. Right now the blue line is just above the orange and that is bullish. But its not very far and just a slight dip and things are bearish.
Looking at the bollinger bands on the chart and we can see that they are very tight and have been for a while now. Last time the bands got tight like this is was only for half the time and we broke up from 9500 to 10400. Im not promising those results again because the bollinger bands dont tell you which way the break out will happen but they do tell you volatility is on the horizon and something should happen quite soon I imagine. We are in the cloud (4hr) and that isnt particularly bullish but we do have the 4hr 50 MA supporting us currently. Not to mention we are above the weekly cloud for the first time in 6 months so I can see why sentiment is currently mixed. One guy says up and the other says down.
At the end of today I wouldnt be surprised to see a decent move in the market. It may not be today but those bollinger bands certainly suggest something is coming. I would proceed with caution my friends. Set a stop loss if you want to long this. There is no reason to trade without a plan so make a plan and stick to it. I used to trade without a solid plan and my profits suffered as a result. An idiot with a plan will do better than a brilliant person without a plan. But then again WTFDIK right?
TLDR: MACD is bullish but just barely... We are in the 4hr cloud which isnt bearish but it certainly isnt bullish either. We have a lot of support below us. The bollinger bands are very tight. Something is coming. Bring an umbrella just in case
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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.