Bitcoin 4hr analysis 11/27/2020
Good morning ladies and gentlemen and welcome back to my daily look into the world of Bitcoin. Today I have the 4hr time frame pulled up after a little tumble down to former support (16500 - 16600) Right now is a dangerous time to "buy the dip" as the market seems to be uncertain about the next move it wants to make. It is a long holiday weekend in the US and that could very well be effecting the charts as well. Anyways lets take a look at the charts and see what we can see.
I see that we fell to the former resistance of 16500 - 16600. I had a feeling that as long as we kept above the 4hr 50 MA things would be okay. As soon as we lost it we dropped considerably. Now we must rely on former support to catch us at this level. The closest historic support just below this level seems to be 15800. So if we clearly lose 16500 we will likely bounce somewhere around this level.
Unfortunately fomo goes both ways. It is nice to see people fomo in on the way up but on the way down it causes knee jerk sells that can bring a market to its knees. Below us we also have the 4hr 200 MA right around 15740. I like to look for support below when the bears are out of their caves. Above us resistance is less clear. But you can still identify it thanks to previous price action. 17500 seems to be the first hurdle we must overcome on the way to a new ATH.
A retrace is to be expected. Will we drop to 4k in a few months? I doubt it. We still have the post halving pump that may or may not be finished. We are still above the 2.5 year resistance we broke earlier this year. If you ask me we still have a lot farther to fall before I declare a bear market. I do like the fact that the RSI was reset on most time frames. Its still a bit high on the weekly. All in all we are not in terrible shape. Just make sure that if you want to long this and catch a possible future pump avoid risk when and where you can. Set a stop loss. Make good choices folks!! WTFDIK???
TLDR: Bears are awake
I see that we fell to the former resistance of 16500 - 16600. I had a feeling that as long as we kept above the 4hr 50 MA things would be okay. As soon as we lost it we dropped considerably. Now we must rely on former support to catch us at this level. The closest historic support just below this level seems to be 15800. So if we clearly lose 16500 we will likely bounce somewhere around this level.
Unfortunately fomo goes both ways. It is nice to see people fomo in on the way up but on the way down it causes knee jerk sells that can bring a market to its knees. Below us we also have the 4hr 200 MA right around 15740. I like to look for support below when the bears are out of their caves. Above us resistance is less clear. But you can still identify it thanks to previous price action. 17500 seems to be the first hurdle we must overcome on the way to a new ATH.
A retrace is to be expected. Will we drop to 4k in a few months? I doubt it. We still have the post halving pump that may or may not be finished. We are still above the 2.5 year resistance we broke earlier this year. If you ask me we still have a lot farther to fall before I declare a bear market. I do like the fact that the RSI was reset on most time frames. Its still a bit high on the weekly. All in all we are not in terrible shape. Just make sure that if you want to long this and catch a possible future pump avoid risk when and where you can. Set a stop loss. Make good choices folks!! WTFDIK???
TLDR: Bears are awake
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