Bitcoin 4hr analysis 11/17/2020
Good morning again ladies and gentlemen and welcome to my daily analysis of Bitcoin. Today I have the 4hr chart pulled up and I can see we are knock knock knockin on 17k's door. Nice work bulls! I am thoroughly impressed with 2020 when it comes to Bitcoin. This monstrosity of a year plagued with a plague, economic worries, unemployment, Bitcoin has proven itself to be resilient and out performed just about any traditional investment. As I typed this intro we did in fact break 17k. Nice! Lets take a look at the chart.
Okay we literally just broke 17k. I keep looking at the charts trying to make sense of the madness. What I see is what I drew on the chart. Its not necessary for me to see the support and resistance drawn on the chart. But I drew them on the chart this a.m. so I can show you all what I am thinking about. This is promising and even though we have sank below 17k since I wrote this. We are still creating the higher highs traders want to see and that is a good thing for the bulls.
Back to support and resistance. Im sort of turning this into a lesson for the noobs. But learning how to identify support and resistance is perhaps the most important things a trader can grasp. I would say that until you have a firm grasp on how support and resistance work than I would avoid trading at all. You will likely get rekt. So you can see I drew yellow horizontal lines. 3 of them to be exact. The candles always bounce off these resistance levels before finally breaking them. This is a key to identifying resistance. I like to see multiple bounces but during a bull run sometimes that doesnt work out.
I threw on some colored arrows to show resistance and support. The resistance is evident where I drew the red arrows. the support is indicated with green arrows. Pretty simple stuff here. When you break resistance it becomes support. The same is true when support fails it becomes resistance. I know most of you probably understand this but I thought I would explain it for anyone that does not understand. Support and resistance does not necessarily need to be horizontal. As you can see there is support all over the chart. The 50 MA (orange line) has provided support and it isnt straight at all. Its ascending at this time. Support can be angled. That is why the fib speed resistance fan is so handy. That 50 MA could be resistance as well so there are always 2 sides to each coin.
Now that I got that out of the way what is next? Will BTC break to new ATH? Lets put it this way, I would not bet against Bitcoin at this time. No way. I read someone put a 100 million dollar short on BTC yesterday. Well chances are unless they had a good stop loss they will likely lose a good bit of money. Anyone trading with that much money is a fool if they do not use a stop loss. Betting against BTC in a bull market is playing with fire. If 17k rejects us where does support lie? Well just look at the lines I threw on the chart. I would expect some support at these levels.
The RSI is near over bought on the 4hr but not quite in the bearish territory yet. RSI isnt always a great indicator of future price action. Especially in a bull market. Ive seen the market ignore RSI many times before. Especially in a run like this. I still pay attention to it but take it with a grain of salt. Below us around 16k I see a multitude of support. The 4hr 50 MA along with the 4hr ichi cloud and also some support we saw during the climb to 17k. Things look very promising and if you ask me the path of least resistance is up, not down.
The bulls broke 17k this morning. That makes me smile. At these levels we dont have much in terms of historic data. That is why I think numbers like 16k and 17k are showing up as support and resistance. Nice round numbers traders buy and sell at. Since there isnt much in terms of historic data at these levels we are in no mans land. So trade with caution folks. Even in a bull run you should ALWAYS set a stop loss. Cmon bulls! Lets break 17k and set out sights on a new ATH! I think its entirely possible we break 20k this year. But Im not certain we will. Just remember the saying. Be fearful when others are greedy. Well right now I would say greed is pretty high. Until then enjoy 17k folks. Its been a while. I hope you all have a great day. Make good choices folks! WTFDIK???
TLDR: Support and resistance is important noobs! Learn it! We broke 17k while I was writing this. Lets establish the support with a few confirmation candles and set our sights on a new ATH.
Okay we literally just broke 17k. I keep looking at the charts trying to make sense of the madness. What I see is what I drew on the chart. Its not necessary for me to see the support and resistance drawn on the chart. But I drew them on the chart this a.m. so I can show you all what I am thinking about. This is promising and even though we have sank below 17k since I wrote this. We are still creating the higher highs traders want to see and that is a good thing for the bulls.
Back to support and resistance. Im sort of turning this into a lesson for the noobs. But learning how to identify support and resistance is perhaps the most important things a trader can grasp. I would say that until you have a firm grasp on how support and resistance work than I would avoid trading at all. You will likely get rekt. So you can see I drew yellow horizontal lines. 3 of them to be exact. The candles always bounce off these resistance levels before finally breaking them. This is a key to identifying resistance. I like to see multiple bounces but during a bull run sometimes that doesnt work out.
I threw on some colored arrows to show resistance and support. The resistance is evident where I drew the red arrows. the support is indicated with green arrows. Pretty simple stuff here. When you break resistance it becomes support. The same is true when support fails it becomes resistance. I know most of you probably understand this but I thought I would explain it for anyone that does not understand. Support and resistance does not necessarily need to be horizontal. As you can see there is support all over the chart. The 50 MA (orange line) has provided support and it isnt straight at all. Its ascending at this time. Support can be angled. That is why the fib speed resistance fan is so handy. That 50 MA could be resistance as well so there are always 2 sides to each coin.
Now that I got that out of the way what is next? Will BTC break to new ATH? Lets put it this way, I would not bet against Bitcoin at this time. No way. I read someone put a 100 million dollar short on BTC yesterday. Well chances are unless they had a good stop loss they will likely lose a good bit of money. Anyone trading with that much money is a fool if they do not use a stop loss. Betting against BTC in a bull market is playing with fire. If 17k rejects us where does support lie? Well just look at the lines I threw on the chart. I would expect some support at these levels.
The RSI is near over bought on the 4hr but not quite in the bearish territory yet. RSI isnt always a great indicator of future price action. Especially in a bull market. Ive seen the market ignore RSI many times before. Especially in a run like this. I still pay attention to it but take it with a grain of salt. Below us around 16k I see a multitude of support. The 4hr 50 MA along with the 4hr ichi cloud and also some support we saw during the climb to 17k. Things look very promising and if you ask me the path of least resistance is up, not down.
The bulls broke 17k this morning. That makes me smile. At these levels we dont have much in terms of historic data. That is why I think numbers like 16k and 17k are showing up as support and resistance. Nice round numbers traders buy and sell at. Since there isnt much in terms of historic data at these levels we are in no mans land. So trade with caution folks. Even in a bull run you should ALWAYS set a stop loss. Cmon bulls! Lets break 17k and set out sights on a new ATH! I think its entirely possible we break 20k this year. But Im not certain we will. Just remember the saying. Be fearful when others are greedy. Well right now I would say greed is pretty high. Until then enjoy 17k folks. Its been a while. I hope you all have a great day. Make good choices folks! WTFDIK???
TLDR: Support and resistance is important noobs! Learn it! We broke 17k while I was writing this. Lets establish the support with a few confirmation candles and set our sights on a new ATH.
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