Good morning ladies and gentlemen and welcome back to my daily analysis of Bitcoin. Today I have the 4hr pulled up after some pretty drastic movements yesterday. We started off yesterday looking shiny and this morning things look much different. At least on the 4hr they do. We are still hanging onto 9k for now which is nice to see but we lost some significant support since I shared my analysis yesterday. Lets discuss.
First thing I want to talk about is the fact that we lost some much needed support. When we dropped from that 50 MA yesterday it was a straight drop to the 4hr 200 MA. It did hang out on top of the 4hr 50 MA briefly before ultimately succumbing to it as well and now we are officially below the former support. So now we have the 4hr 50 MA and the 4hr 200 MA above us. That is bearish.
We do still have the support of the 4hr cloud so that should be of some comfort. But after seeing the drop from the 200 MA yesterday we all know that Bitcoin can drop or rise very quickly. So prepare yourself. Within the next few hours we have a break in the 4hr cloud. It gets very thin. This is a great opportunity for the bears to take us below the 4hr cloud. It may not happen but i would keep my eyes on it til we are safely past it on the chart.
8800 is still support and would likely hold if we approached it once more. We have had significant bounces from this level and while all good things do come to an end its still worth keeping an eye on if you ask me. I set my buy recently at 8850 and the candle only got to 8890 before rebounding and jumping ultimately to 9500+. Did that sting? Hell yes it did sting. But what can you do? Dust yourself off and hit a home run next time is what you do. This isn't the first time my buy order didn't initiate and it wont be the last.
The worst thing you can do in that situation is buy out of frustration. If I had done that I would have bought at 9500 when I woke up and figured out my buy didn't go through. Then we would have dipped less than 8 hours later! Patience is absolutely essential as a trader. Leave emotions at the door. Frustrated trading always leads to losses. Develop a plan and stick with it. Your portfolio will thank you. I will likely set another buy order around 8900 and set a stop loss below that to ensure if we do not get the pump after testing the .236 fib I will still be safe with my stop loss. We have been getting buy pressure everytime we approach the .236 (8800) and I know it will end one day. But that is why they made stop losses isnt it? If you want to take a risk why not use all the available tools to your advantage. Trading without a stop loss isnt like jumping from a plane without a parachute. Its more like jumping from a plane without a backup parachute. You want that back up in case your original parachute malfunctions and without that back up parachute you are as good as dead. Just like trading. You turn around and you can be liquidated (of thats how you roll) or your bag can be severely hit by the bears. Either way a smart plan and stop loss can prevent most of the risk and maximize the reward. That is what we all desire after all. But WTFDIK right?
TLDR: I want my MTV
First thing I want to talk about is the fact that we lost some much needed support. When we dropped from that 50 MA yesterday it was a straight drop to the 4hr 200 MA. It did hang out on top of the 4hr 50 MA briefly before ultimately succumbing to it as well and now we are officially below the former support. So now we have the 4hr 50 MA and the 4hr 200 MA above us. That is bearish.
We do still have the support of the 4hr cloud so that should be of some comfort. But after seeing the drop from the 200 MA yesterday we all know that Bitcoin can drop or rise very quickly. So prepare yourself. Within the next few hours we have a break in the 4hr cloud. It gets very thin. This is a great opportunity for the bears to take us below the 4hr cloud. It may not happen but i would keep my eyes on it til we are safely past it on the chart.
8800 is still support and would likely hold if we approached it once more. We have had significant bounces from this level and while all good things do come to an end its still worth keeping an eye on if you ask me. I set my buy recently at 8850 and the candle only got to 8890 before rebounding and jumping ultimately to 9500+. Did that sting? Hell yes it did sting. But what can you do? Dust yourself off and hit a home run next time is what you do. This isn't the first time my buy order didn't initiate and it wont be the last.
The worst thing you can do in that situation is buy out of frustration. If I had done that I would have bought at 9500 when I woke up and figured out my buy didn't go through. Then we would have dipped less than 8 hours later! Patience is absolutely essential as a trader. Leave emotions at the door. Frustrated trading always leads to losses. Develop a plan and stick with it. Your portfolio will thank you. I will likely set another buy order around 8900 and set a stop loss below that to ensure if we do not get the pump after testing the .236 fib I will still be safe with my stop loss. We have been getting buy pressure everytime we approach the .236 (8800) and I know it will end one day. But that is why they made stop losses isnt it? If you want to take a risk why not use all the available tools to your advantage. Trading without a stop loss isnt like jumping from a plane without a parachute. Its more like jumping from a plane without a backup parachute. You want that back up in case your original parachute malfunctions and without that back up parachute you are as good as dead. Just like trading. You turn around and you can be liquidated (of thats how you roll) or your bag can be severely hit by the bears. Either way a smart plan and stop loss can prevent most of the risk and maximize the reward. That is what we all desire after all. But WTFDIK right?
TLDR: I want my MTV
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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.