Bitcoin 4hr analysis 12/5/2020
Good morning again ladies and gentlemen and welcome back to my daily look upon the charts of Bitcoin. Today I have the 4hr pulled up after retaking 19k today. Its nice to see and I see a few other things I wanted to bring up. We will discuss that in this analysis. The bears have been trying hard to take us down but the bulls have countered them at every turn. I am still bullish and the majority of the market is as well. But that doesnt mean Im not using a stop loss. Anyways lets take a look at what is going on today.
First thing I wanted to mention is the pennant I drew. It looks like it may materialize into a continuation pattern. With the 4hr 50 MA below us currently it gives me confidence and I imagine many other traders feel the same as I do. If you ask me the path of least resistance at this point would be up. But we all know how volatile BTC can be and it is also the weekend which could mean lower volume. So I would proceed with utmost caution. Set a stop loss if you want to play this pennant.
We are above 19k and I take that as a win. It certainly could be worse and if this continuation pattern I mentioned in the paragraph before this works out we very well could burst through 20k. Only time will tell for sure. I sure would hate for this pennant to break down but that is always an option. The bears are tricky like that. We call those patterns bart simpson patterns out of fun. But they really arent very fun if you ask me.
We are steadily climbing as I write this analysis so that is nice to see as well. The sentiment is overwhelmingly bullish and it has been for a while. I am not ready to bet against the bulls at this point. But I will employ risk management. The bears are always close by plotting. If we can break 20k over the weekend it will create a gap below us which could get filled quickly if people decide to take profit en mass. It happens. People buy and sell and that is why there is liquidity in this market. So as optimistic as I am I am not trading without that risk management in place. Its just good business.
At this point major institutions are buying up BTC faster than it can be produced. Perhaps this has added some much needed fuel to this bull run. Grayscale along with Paypal. This could be just the start. This is when simple supply and demand comes into effect. We could certainly see some fireworks from BTC if everything works out. Stay tuned folks. I am not going to count my bitcoin before they are mined. But I am going to say I am optimistic. I hope the majority of you are too. But please exercise risk management and set a stop loss. Have a great weekend everyone and stay safe. Make good choices! WTFDIK??
TLDR: Bitcoin is King.
First thing I wanted to mention is the pennant I drew. It looks like it may materialize into a continuation pattern. With the 4hr 50 MA below us currently it gives me confidence and I imagine many other traders feel the same as I do. If you ask me the path of least resistance at this point would be up. But we all know how volatile BTC can be and it is also the weekend which could mean lower volume. So I would proceed with utmost caution. Set a stop loss if you want to play this pennant.
We are above 19k and I take that as a win. It certainly could be worse and if this continuation pattern I mentioned in the paragraph before this works out we very well could burst through 20k. Only time will tell for sure. I sure would hate for this pennant to break down but that is always an option. The bears are tricky like that. We call those patterns bart simpson patterns out of fun. But they really arent very fun if you ask me.
We are steadily climbing as I write this analysis so that is nice to see as well. The sentiment is overwhelmingly bullish and it has been for a while. I am not ready to bet against the bulls at this point. But I will employ risk management. The bears are always close by plotting. If we can break 20k over the weekend it will create a gap below us which could get filled quickly if people decide to take profit en mass. It happens. People buy and sell and that is why there is liquidity in this market. So as optimistic as I am I am not trading without that risk management in place. Its just good business.
At this point major institutions are buying up BTC faster than it can be produced. Perhaps this has added some much needed fuel to this bull run. Grayscale along with Paypal. This could be just the start. This is when simple supply and demand comes into effect. We could certainly see some fireworks from BTC if everything works out. Stay tuned folks. I am not going to count my bitcoin before they are mined. But I am going to say I am optimistic. I hope the majority of you are too. But please exercise risk management and set a stop loss. Have a great weekend everyone and stay safe. Make good choices! WTFDIK??
TLDR: Bitcoin is King.
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