Good morning ladies and gentlemen and welcome back to my daily look into the ups and downs of Bitcoin. Today I have the 4hr time frame pulled up after a clear rejection at resistance. The candles are respecting indicators once again so that gives the charts a degree of predictability. I admit that I dont have a crystal ball but I will give you a logical analysis with a logical explanation to accompany it. Maybe we will even learn a thing or 2.... So put that thinking cap on and lets jump into this analysis.
First thing I wanted to bring up is the clear rejection at the 4hr 50 MA . This is what is supposed to happen really. Indicators like the 50 MA (on any time frame) should act as support or resistance accordingly. We were underneath the 4hr 50 MA and it rejected our advances. The 4hr 50 MA should start descending as a result of the candles being below the indicator. This is cyclical. The 50 MA starts sinking and as a result it makes it easier for the candles to break back above it. If you look at just about any time frame just with the 50 MA on the chart you can see the wrestling match between the candles and the 50 MA. The 200 MA is less dramatic but it is largely the same.
***Bonus tip: I always say this but I figured I would say it here too. Here is an easy way to look at the 50 MA or really any moving average.. (I use 50 and 200 MA because they are popular and they work as advertised quite often) When you are below the MA its bearish. When you are above the MA it is bullish. Pretty easy.
I wanted to speak a bit more about the rejection at the 4hr 50 MA. This has a lot to do with the 4hr 50 MA being a reliable indicator, but the rejection can be traced to a few things. There is a ton of resistance built up at this particular area. Between 10700 and 11k is a lot of resistance to break through. Bulls see this and it takes the confidence right out of their sails. I see a few opportunities to break above the built up resistance coming soon, but I am not holding my breath. I think the bulls may wait a bit before trying to break above the resistance. It will be easier to break each indicator individually (the 50 MA, 200 MA, 4hr cloud) vs breaking all of these indicators at once. Im just thinking out loud here folks. Let me know if you disagree with my logic.
10250 seems to be support and if we were to fall I would expect to find some relief at this level. But that isnt certain by any means. Make sure you set a stop loss folks. We are currently experiencing heavy cloud cover on the 4hr and the daily time frame. As you know those are my go to time frames. I also wanted to mention that I went over all the resistance above us on the 4hr time frame. But the rejection was not only at the 4hr 50 MA... The 4hr 50 MA and the bottom border of the daily cloud are at the exact same price level. This is even more resistance for the bulls to overcome and I think we may have to wait til maybe Monday before we can see the bulls start to work their way out of this fine mess they are in. But only time will tell for sure. In the mean time make a plan and stick with it. Strategy is important. I hope you all have a great day and I wish you luck on your trades! Make good choices! WTFDIK???
TLDR: Rejected around 10700. The 4hr 50 MA and the daily cloud (*bottom border) is immediate resistance. Support is around 10250. Lets hope the bulls can hold us above 10k. It may take a few days before confidence returns to the market. We have an overwhelming amount of resistance above us.
First thing I wanted to bring up is the clear rejection at the 4hr 50 MA . This is what is supposed to happen really. Indicators like the 50 MA (on any time frame) should act as support or resistance accordingly. We were underneath the 4hr 50 MA and it rejected our advances. The 4hr 50 MA should start descending as a result of the candles being below the indicator. This is cyclical. The 50 MA starts sinking and as a result it makes it easier for the candles to break back above it. If you look at just about any time frame just with the 50 MA on the chart you can see the wrestling match between the candles and the 50 MA. The 200 MA is less dramatic but it is largely the same.
***Bonus tip: I always say this but I figured I would say it here too. Here is an easy way to look at the 50 MA or really any moving average.. (I use 50 and 200 MA because they are popular and they work as advertised quite often) When you are below the MA its bearish. When you are above the MA it is bullish. Pretty easy.
I wanted to speak a bit more about the rejection at the 4hr 50 MA. This has a lot to do with the 4hr 50 MA being a reliable indicator, but the rejection can be traced to a few things. There is a ton of resistance built up at this particular area. Between 10700 and 11k is a lot of resistance to break through. Bulls see this and it takes the confidence right out of their sails. I see a few opportunities to break above the built up resistance coming soon, but I am not holding my breath. I think the bulls may wait a bit before trying to break above the resistance. It will be easier to break each indicator individually (the 50 MA, 200 MA, 4hr cloud) vs breaking all of these indicators at once. Im just thinking out loud here folks. Let me know if you disagree with my logic.
10250 seems to be support and if we were to fall I would expect to find some relief at this level. But that isnt certain by any means. Make sure you set a stop loss folks. We are currently experiencing heavy cloud cover on the 4hr and the daily time frame. As you know those are my go to time frames. I also wanted to mention that I went over all the resistance above us on the 4hr time frame. But the rejection was not only at the 4hr 50 MA... The 4hr 50 MA and the bottom border of the daily cloud are at the exact same price level. This is even more resistance for the bulls to overcome and I think we may have to wait til maybe Monday before we can see the bulls start to work their way out of this fine mess they are in. But only time will tell for sure. In the mean time make a plan and stick with it. Strategy is important. I hope you all have a great day and I wish you luck on your trades! Make good choices! WTFDIK???
TLDR: Rejected around 10700. The 4hr 50 MA and the daily cloud (*bottom border) is immediate resistance. Support is around 10250. Lets hope the bulls can hold us above 10k. It may take a few days before confidence returns to the market. We have an overwhelming amount of resistance above us.
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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.