Good morning everyone and welcome to my daily analysis of Bitcoin. Today I have the 4hr pulled up and I can see we are still holding up above 9500 for now. Things could change over the weekend as I see a few bearish developments on the chart. I also see reasons to be optimistic so I would be cautious to enter a position as sentiment is also a bit mixed at this point... And rightfully so. Lets take a look at the chart and see what the deal is.
We have been cruising sideways in consolidation for nearly a month and we are still firmly in this consolidation pattern between 8k and 10k (besides maybe a few well placed wicks) Its always exciting to see us break 10k but its not sticking it seems. The selling just takes over when we eclipse 10k and we drop back into the 9k region as a result. The bears have been patiently awaiting their moment to make a move and I think it could come this weekend. Although I have been wrong before so make sure you plan your moves and minimizing the risks and you will be okay regardless.
The reason I think things look a bit bearish is I see that we entered the 4hr cloud for the first time since late May. The cloud is confining in nature and the top border acts as a resistance and the bottom acts as support. That is until we escape the cloud which will eventually happen. Last time we spent any significant time in the 4hr cloud we broke down out of the cloud. Well right now everything is teetering on the 4hr 50 MA. If we drop below the 4hr 50 MA and it becomes resistance we could be in trouble. I would say if this does happen we will likely break out of the bottom of the cloud.
The good news is we have a lot of support below us on multiple time frames and that is promising if you are in a long position at the moment. There is still confidence in this market from the looks of it but a good red candle could cause some fomo and cause the knee jerk sells that drop the price. Just a few supports I can list is the 4hr 50 MA and 200 MA, the daily cloud and the daily 50 and 200 MA, The weekly 50 MA and the weekly cloud, that is just to name a few. That is a lot of support so lets not count our chickens before they hatch. After all the most predictable part of Bitcoin is it is unpredictable. I just try to use the odds to my favor. But then again WTFDIK right?
We have been cruising sideways in consolidation for nearly a month and we are still firmly in this consolidation pattern between 8k and 10k (besides maybe a few well placed wicks) Its always exciting to see us break 10k but its not sticking it seems. The selling just takes over when we eclipse 10k and we drop back into the 9k region as a result. The bears have been patiently awaiting their moment to make a move and I think it could come this weekend. Although I have been wrong before so make sure you plan your moves and minimizing the risks and you will be okay regardless.
The reason I think things look a bit bearish is I see that we entered the 4hr cloud for the first time since late May. The cloud is confining in nature and the top border acts as a resistance and the bottom acts as support. That is until we escape the cloud which will eventually happen. Last time we spent any significant time in the 4hr cloud we broke down out of the cloud. Well right now everything is teetering on the 4hr 50 MA. If we drop below the 4hr 50 MA and it becomes resistance we could be in trouble. I would say if this does happen we will likely break out of the bottom of the cloud.
The good news is we have a lot of support below us on multiple time frames and that is promising if you are in a long position at the moment. There is still confidence in this market from the looks of it but a good red candle could cause some fomo and cause the knee jerk sells that drop the price. Just a few supports I can list is the 4hr 50 MA and 200 MA, the daily cloud and the daily 50 and 200 MA, The weekly 50 MA and the weekly cloud, that is just to name a few. That is a lot of support so lets not count our chickens before they hatch. After all the most predictable part of Bitcoin is it is unpredictable. I just try to use the odds to my favor. But then again WTFDIK right?
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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.