Bitcoin 4hr analysis 11/18/2020
Good morning ladies and gentlemen and welcome back to the pump show. But seriously who angered the bulls? I guess they have been kept under the thumb of the bears for years now. But over this year a few key things have occurred that may or may not have fueled this pump. I will discuss a few of my thoughts through this analysis. 18500 is the new yearly high. The bulls really brought their A game and we are seeing the results of this on the charts even now. But what happens next? Lets take a look.
This year has been wrought with a pandemic coupled with the fact the markets all nosedived on March the 13th (RIP bulls). Bitcoin recovered much faster than most other investments and that is totally evident by just comparing prices. We were at 3800 March the 13, today we sit above 18k. What is the reason for this? I say a few things can be blamed. I will discuss a few
First and foremost the halving. It occurred earlier this year and I have always heard that there is a pump a few months after the halving. Well it happened. I remember begging my friends and family to buy at 3800 and they laughed at me. Well guess who is laughing all the way to the bank today??? Another thing I want to bring up is the breaking of the resistance we have been stuck under since the ATH in 2017. There was a descending trend line that formed from the peak of 20k in 2017 to June or July of this year when we finally broke the heavy resistance. I mentioned that I was very bullish when this break occurred and things still have not changed.
Big events like breaking years long resistance etc is major in trading is a big deal. Especially when you consider we had a halving event right around the same time. Talk about a recipe for rocket fuel. I know ever since we broke the 2.5 year resistance I mentioned earlier I have been full bull. I always kept the halving pump in the back of my mind. This is very likely what we are experiencing now. That coupled with a fair amount of fomo.
I do think we may move sideways a bit here. If we want to form another bull flag we may see a slight retrace. Maybe even lose 18k in the process. No sweat. Im being a good trader and walking my stop loss up with the price movement. Luckily while I was asleep we pumped quite a bit to 18500 before retracing back to the 17200 range before retaking 18k.. All in the same 4hr candle. That retrace was just above my stop loss. I didnt get stopped out. Lucky me. Would not be the first time I was stopped out and would not be the last either. When you get stopped out take that profit and wait for reentry. Dont be greedy. Be patient. Opportunities come to those that are patient.
The chart tells it all folks. We have been on a massive tear up the charts and its gone parabolic making things hard to track at times. Hell the trend is your friend right? But what if the trend goes straight up? I wanna be friends with that trend, let me tell ya. The 4hr 50 MA has been reliable support on the way up and just about each retrace was stopped by the 4hr 50 MA. Will this last forever? Probably not. But why not take advantage? If you would have noticed this a few weeks ago you could have made some solid trades simply buying off the bounces. I think we may very well paint another flag before the next move. Lets hope the bulls have more in store for us.
Im excited just like each and everyone of you. But Im also realistic. Set a stop loss! Stick to the plan! Another good piece of advice is remove the principle investment. Say you put in 1000 in March. Now that its at 4500 remove the 1k at the very least. That way you play with house money. Pretty simple technique but effective. I see people saying to take a loan to buy BTC. That is not smart. Never get in debt to invest. Could it pay off? Sure it could. But you may end up REKT. Owing the bank for the loan along with only having access to half your money after losing it to the bears. Be greedy when others are fearful. Be fearful when others are greedy. I hope you all have a great day folks. Enjoy 18k. Its been a while since we have been at these levels. Make good choices my friends! WTFDIK???
TLDR: MOON
This year has been wrought with a pandemic coupled with the fact the markets all nosedived on March the 13th (RIP bulls). Bitcoin recovered much faster than most other investments and that is totally evident by just comparing prices. We were at 3800 March the 13, today we sit above 18k. What is the reason for this? I say a few things can be blamed. I will discuss a few
First and foremost the halving. It occurred earlier this year and I have always heard that there is a pump a few months after the halving. Well it happened. I remember begging my friends and family to buy at 3800 and they laughed at me. Well guess who is laughing all the way to the bank today??? Another thing I want to bring up is the breaking of the resistance we have been stuck under since the ATH in 2017. There was a descending trend line that formed from the peak of 20k in 2017 to June or July of this year when we finally broke the heavy resistance. I mentioned that I was very bullish when this break occurred and things still have not changed.
Big events like breaking years long resistance etc is major in trading is a big deal. Especially when you consider we had a halving event right around the same time. Talk about a recipe for rocket fuel. I know ever since we broke the 2.5 year resistance I mentioned earlier I have been full bull. I always kept the halving pump in the back of my mind. This is very likely what we are experiencing now. That coupled with a fair amount of fomo.
I do think we may move sideways a bit here. If we want to form another bull flag we may see a slight retrace. Maybe even lose 18k in the process. No sweat. Im being a good trader and walking my stop loss up with the price movement. Luckily while I was asleep we pumped quite a bit to 18500 before retracing back to the 17200 range before retaking 18k.. All in the same 4hr candle. That retrace was just above my stop loss. I didnt get stopped out. Lucky me. Would not be the first time I was stopped out and would not be the last either. When you get stopped out take that profit and wait for reentry. Dont be greedy. Be patient. Opportunities come to those that are patient.
The chart tells it all folks. We have been on a massive tear up the charts and its gone parabolic making things hard to track at times. Hell the trend is your friend right? But what if the trend goes straight up? I wanna be friends with that trend, let me tell ya. The 4hr 50 MA has been reliable support on the way up and just about each retrace was stopped by the 4hr 50 MA. Will this last forever? Probably not. But why not take advantage? If you would have noticed this a few weeks ago you could have made some solid trades simply buying off the bounces. I think we may very well paint another flag before the next move. Lets hope the bulls have more in store for us.
Im excited just like each and everyone of you. But Im also realistic. Set a stop loss! Stick to the plan! Another good piece of advice is remove the principle investment. Say you put in 1000 in March. Now that its at 4500 remove the 1k at the very least. That way you play with house money. Pretty simple technique but effective. I see people saying to take a loan to buy BTC. That is not smart. Never get in debt to invest. Could it pay off? Sure it could. But you may end up REKT. Owing the bank for the loan along with only having access to half your money after losing it to the bears. Be greedy when others are fearful. Be fearful when others are greedy. I hope you all have a great day folks. Enjoy 18k. Its been a while since we have been at these levels. Make good choices my friends! WTFDIK???
TLDR: MOON
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