Good morning ladies and gentlemen and welcome back to my daily analysis of Bitcoin. Today I have the daily chart pulled up after recovering much of what we lost over the past weekend. It is nice to see the bulls refusing to let 9k go but how long can that last? It has gone on for quite a while already and every single time we dip below 9k over the past few months we recover very quickly. I see a few reasons for this I will touch on later in this analysis. What is next on the chart? Lets try and decipher this mess.
First thing I notice is we got rejected from the small trend resistance. Yesterday we climbed a bit and during that climb we encountered the trend resistance. We were rejected from this resistance and have since retraced a bit to 9250 when we climbed to 9400 approximately yesterday. The resistance was a bit more built up where we got rejected thanks to the daily 50 MA being there as well. Both the 50 MA on the daily and the trend resistance rejected the candles. I see another possible test of 8800 in the not so distant future.
Next thing I want to talk about is the daily bollinger bands. They are really tight at the moment. They have been pretty tight since late June and I expect some volatility to show its face sooner or later. Its like a ticking time bomb with the bollinger bands. That is a pretty good analogy if you ask me as the bollinger bands dont tell you the direction the breakout will show its face but rather it tells you volatility is on the horizon and allows you to prepare.
So we are stuck firmly within the daily clouds grasp at this time. If the trend continues we will be pushed out of the bottom of the cloud in 10 days or less I imagine. If that happens it will be a blow to confidence on the chart. So would losing 8800 as it has held for months now. 8800 (or the .236 fib) is an important support. If it should fail the next support down I see would be the daily 200 MA and the bottom border of the daily cloud. Both are merged and would likely hold up the candles around 8300ish.
Bitcoin will go up and go down. No way around it because that is what a healthy market does. We had a nice few months from March to May. After that we have largely been in a period of consolidation. I know its hard to imagine bouncing between the mid 8k range to 10400 is a big range but this is BTC after all. Anything goes. After a year like this its hard to understand how BTC has held its own but it certainly has. Look at it like this. If things head south I can get some cheaper BTC and I win. If things go north on the chart my BTC value increases and I win. Either way I win... But WTFDIK right???
TLDR: Save the trees!!! Use Bitcoin
First thing I notice is we got rejected from the small trend resistance. Yesterday we climbed a bit and during that climb we encountered the trend resistance. We were rejected from this resistance and have since retraced a bit to 9250 when we climbed to 9400 approximately yesterday. The resistance was a bit more built up where we got rejected thanks to the daily 50 MA being there as well. Both the 50 MA on the daily and the trend resistance rejected the candles. I see another possible test of 8800 in the not so distant future.
Next thing I want to talk about is the daily bollinger bands. They are really tight at the moment. They have been pretty tight since late June and I expect some volatility to show its face sooner or later. Its like a ticking time bomb with the bollinger bands. That is a pretty good analogy if you ask me as the bollinger bands dont tell you the direction the breakout will show its face but rather it tells you volatility is on the horizon and allows you to prepare.
So we are stuck firmly within the daily clouds grasp at this time. If the trend continues we will be pushed out of the bottom of the cloud in 10 days or less I imagine. If that happens it will be a blow to confidence on the chart. So would losing 8800 as it has held for months now. 8800 (or the .236 fib) is an important support. If it should fail the next support down I see would be the daily 200 MA and the bottom border of the daily cloud. Both are merged and would likely hold up the candles around 8300ish.
Bitcoin will go up and go down. No way around it because that is what a healthy market does. We had a nice few months from March to May. After that we have largely been in a period of consolidation. I know its hard to imagine bouncing between the mid 8k range to 10400 is a big range but this is BTC after all. Anything goes. After a year like this its hard to understand how BTC has held its own but it certainly has. Look at it like this. If things head south I can get some cheaper BTC and I win. If things go north on the chart my BTC value increases and I win. Either way I win... But WTFDIK right???
TLDR: Save the trees!!! Use Bitcoin
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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.