Good morning everyone and welcome back to my daily analysis of Bitcoin. Today I have the daily pulled up after a pretty boring day yesterday... Not much occurred in terms of price action and we seem to be in solid consolidation at this time. I would say this is the calm before the storm... What do you need for a storm? You need clouds. Im thinking it wont be long and we will sink into the daily cloud at this rate. I will explain myself as this analysis progresses. So buckle up and get ready! Things could get exciting soon....
First of all I see we are still above the daily 50 MA after plunging below it for around 6-12 hours on 6-15-2020. The wick is significant. We dropped all the way to the daily cloud which provided the candle with some much needed support and we muscled our way back and got our heads back above water (the daily 50 MA is the water) Nice work by the bulls but is it enough??? Im not so sure it is.
For nearly the last 6 - 7 days we have been testing the daily 50 MA. I like being above it dont get me wrong. But I see us testing the daily 50 MA for nearly 7 days and it tells me that the writing is on the wall. We will likely drop at least as far as the top of the daily cloud if the daily 50 MA doesnt hold. There isnt much upside that can be taken as far as a green candle without breaking the descending resistance that has been confining the candles since the ATH in Dec 2017. Looking at the chart I would say 10k is the highest we can go without breaking this resistance. If we can break the resistance that is a horse of a different color. I believe that fomo will take over if that does materialize.
Its easy to get discouraged when you read a bearish analysis like the one I am writing but I have been wrong before. That is why I love the idea of a stop loss. It helps me not have to pay full price for my mistakes. I can afford to miss a pump because I got stopped out. Ill just hit the next trade out of the park. No sweat.
I would say that 8800 - 9100 is very likely if the bears wake up and take care of business. There is support in this range. There has been for over a year now. Below us there is a gap as well. Right around 7600. The gap is literally like 40$ but its there. Can we fill this during the next bear trend? I think we can. Like I said earlier, dont be discouraged by the red candles. When the price drops look at it as an opportunity rather than an inconvenience. Accumulate during the dips and use smart trading techniques and you will get that profit you desire. Just be patient and smart. Set yourself up with a plan and a stop loss. Believe me, trading without a plan is like rolling the dice. The odds are never in your favor.
I know Im bearish and I hope the bulls prove me wrong but looking at the chart I see the bolinger bands are tightening as we consolidate. This means volatility is on the horizon. A decent drop could see us lose that daily 50 MA and the daily cloud (top border). Luckily for us we still have a lot of support below us. The daily 200 MA along with the bottom border of the cloud is sitting around 8200. We could find some support here if the bears can push us down. I really do hope the bulls can pull this off but after the rise from 3800 to 10520 in less than 3 months that seems to be a lot to ask. This market is cyclical after all and what goes up usually comes down.
Looking on the bright side, we are still above the cloud on the daily and the weekly. This is significant and this is likely one of the reasons we havent crashed into the abyss quite yet. There is still a lot of confidence when you are above the cloud. Especially on the bigger time frames (daily and weekly). I threw the mac d on the chart this a.m. and it look bearish to me. I dont use the mac d a lot but when the blue is under the red its bearish from what I can see. Trade at your own risk folks. I am thinking we will head down in the next day or 2... But then again WTFDIK right?
TLDR: CSW is a POS
First of all I see we are still above the daily 50 MA after plunging below it for around 6-12 hours on 6-15-2020. The wick is significant. We dropped all the way to the daily cloud which provided the candle with some much needed support and we muscled our way back and got our heads back above water (the daily 50 MA is the water) Nice work by the bulls but is it enough??? Im not so sure it is.
For nearly the last 6 - 7 days we have been testing the daily 50 MA. I like being above it dont get me wrong. But I see us testing the daily 50 MA for nearly 7 days and it tells me that the writing is on the wall. We will likely drop at least as far as the top of the daily cloud if the daily 50 MA doesnt hold. There isnt much upside that can be taken as far as a green candle without breaking the descending resistance that has been confining the candles since the ATH in Dec 2017. Looking at the chart I would say 10k is the highest we can go without breaking this resistance. If we can break the resistance that is a horse of a different color. I believe that fomo will take over if that does materialize.
Its easy to get discouraged when you read a bearish analysis like the one I am writing but I have been wrong before. That is why I love the idea of a stop loss. It helps me not have to pay full price for my mistakes. I can afford to miss a pump because I got stopped out. Ill just hit the next trade out of the park. No sweat.
I would say that 8800 - 9100 is very likely if the bears wake up and take care of business. There is support in this range. There has been for over a year now. Below us there is a gap as well. Right around 7600. The gap is literally like 40$ but its there. Can we fill this during the next bear trend? I think we can. Like I said earlier, dont be discouraged by the red candles. When the price drops look at it as an opportunity rather than an inconvenience. Accumulate during the dips and use smart trading techniques and you will get that profit you desire. Just be patient and smart. Set yourself up with a plan and a stop loss. Believe me, trading without a plan is like rolling the dice. The odds are never in your favor.
I know Im bearish and I hope the bulls prove me wrong but looking at the chart I see the bolinger bands are tightening as we consolidate. This means volatility is on the horizon. A decent drop could see us lose that daily 50 MA and the daily cloud (top border). Luckily for us we still have a lot of support below us. The daily 200 MA along with the bottom border of the cloud is sitting around 8200. We could find some support here if the bears can push us down. I really do hope the bulls can pull this off but after the rise from 3800 to 10520 in less than 3 months that seems to be a lot to ask. This market is cyclical after all and what goes up usually comes down.
Looking on the bright side, we are still above the cloud on the daily and the weekly. This is significant and this is likely one of the reasons we havent crashed into the abyss quite yet. There is still a lot of confidence when you are above the cloud. Especially on the bigger time frames (daily and weekly). I threw the mac d on the chart this a.m. and it look bearish to me. I dont use the mac d a lot but when the blue is under the red its bearish from what I can see. Trade at your own risk folks. I am thinking we will head down in the next day or 2... But then again WTFDIK right?
TLDR: CSW is a POS
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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.