Good morning everyone and welcome back to my daily analysis of Bitcoin. Today I have the 4hr chart pulled up and I can see we took a little dip over night which was followed by a recovery back to 9400 where we sit currently. I am still bearish when I look at this time frame folks. There is just no way around it Im afraid. If you were to only look at the weekly you may think things are bullish but one must cycle through all the major time frames to ensure they are prepared for what is next. And to me the 4hr is telling me we go down. But lets take a look at that chart and Ill explain myself.
First of all we are pretty much in the same position as we were yesterday. Below a lot of resistance on the 4hr. The 4hr 200 MA the 4hr 50 MA and the 4hr cloud all are pretty much merged into a super resistance that is plaguing the candles as I type. We have all seen Bitcoin blow through resistance like it was nothing in the past but this buildup of resistance has held us down for days now. The candles are really respecting the 4hr 50 MA and slowly and steadily the candles have dropped along with the 50 MA in a slow descent.
There must be some buying pressure the closer we get to 9k. Lately every time we approach this area we bounce. We know that 8800 - 9200 ish have been strong support historically. Just look into the past and you can see how this level held in the past. Of course all good things must end folks and the more often we test this range the more likely it is that we fall. If we were to fall Im thinking 8200 is a good area to look for support. The reason I say that is cycling to the daily time frame and you can see the 50 MA on the daily is supporting us but if that should fail we will likely descend into the daily cloud. At the bottom of the daily cloud the border is at 8200 along with the significant daily 200 MA as well. I would expect this area to hold as support in the event of a plunge.
Not to say we dip that far today or anything. I just like to be ready for anything the bears throw my way. If we were to go up the descending resistance that has been on the chart for over 2.5 years would likely keep us below 10k at this point. The more time passes the lower that descending resistance becomes and we will eventually crash through it. After this happens fomo is likely to ensue. Im not expecting us to break through at this time. The resistance above us is daunting after such a great trend from 3800 to 10400. What goes up must come down and we must remember these markets are cyclical if anything. Downtrends are just as common as the uptrends. If you ask me after such a great uptrend a downtrend is due.
Some good news is we are still above the weekly cloud. That is significant as its the first time we have been above it in this year (we had brief stints above the cloud but no candles closed above it) So there really are 2 sides to every coin. When the time frames give me mixed signals I am always cautious. I hope you are all mitigating those risks and locking in those profits when you can. Just remember that if you get froggy and want to long this set a stop loss for the love of God. WTFDIK
TLDR: TRX are for kids
First of all we are pretty much in the same position as we were yesterday. Below a lot of resistance on the 4hr. The 4hr 200 MA the 4hr 50 MA and the 4hr cloud all are pretty much merged into a super resistance that is plaguing the candles as I type. We have all seen Bitcoin blow through resistance like it was nothing in the past but this buildup of resistance has held us down for days now. The candles are really respecting the 4hr 50 MA and slowly and steadily the candles have dropped along with the 50 MA in a slow descent.
There must be some buying pressure the closer we get to 9k. Lately every time we approach this area we bounce. We know that 8800 - 9200 ish have been strong support historically. Just look into the past and you can see how this level held in the past. Of course all good things must end folks and the more often we test this range the more likely it is that we fall. If we were to fall Im thinking 8200 is a good area to look for support. The reason I say that is cycling to the daily time frame and you can see the 50 MA on the daily is supporting us but if that should fail we will likely descend into the daily cloud. At the bottom of the daily cloud the border is at 8200 along with the significant daily 200 MA as well. I would expect this area to hold as support in the event of a plunge.
Not to say we dip that far today or anything. I just like to be ready for anything the bears throw my way. If we were to go up the descending resistance that has been on the chart for over 2.5 years would likely keep us below 10k at this point. The more time passes the lower that descending resistance becomes and we will eventually crash through it. After this happens fomo is likely to ensue. Im not expecting us to break through at this time. The resistance above us is daunting after such a great trend from 3800 to 10400. What goes up must come down and we must remember these markets are cyclical if anything. Downtrends are just as common as the uptrends. If you ask me after such a great uptrend a downtrend is due.
Some good news is we are still above the weekly cloud. That is significant as its the first time we have been above it in this year (we had brief stints above the cloud but no candles closed above it) So there really are 2 sides to every coin. When the time frames give me mixed signals I am always cautious. I hope you are all mitigating those risks and locking in those profits when you can. Just remember that if you get froggy and want to long this set a stop loss for the love of God. WTFDIK
TLDR: TRX are for kids
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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.