Hello again everyone and welcome to my daily analysis of Bitcoin. today I have the 4hr time frame pulled up and I can see we are testing resistance again as I type. It is nice to see the price back above 9500 but if we cant break resistance we will likely sink back down. There is quite a bit of support below us and that is a good thing if you are a bull. But the real test right now is if we can beat the resistance above us and create that higher high we all want to see. Lets take a look at the chart.
I have a descending resistance on the chart that the candles have been respecting for over a week. We havent been able to climb above this descending resistance and as a result we are consolidating between 9200 - 9600 approximately. Like I mentioned earlier we have plenty of support below us currently. The 4hr cloud is the first level I would look to that could provide support in the event of a retrace. We did bounce from the top of the cloud the last time we tested it and the next time we approach it their should be even more support which could make the path of least resistance an upward one.
Directly below the 4hr cloud we have the 50 and 200 MA's that should provide some support should the top of the cloud fail as support. This should stop us from falling into the abyss over the weekend. Although we could drop into this 4hr cloud nothing is certain and we should prepare ourselves for anything as traders. There is no guarantee that we dont break up out of this wedge pattern and see a higher high. I would really like to see 10500 get broken as I believe this would cause a bit of fomo and pump the price a bit more.
Either way you should set a stop loss. If you think we are going up or down it doesnt change the fact that you should negate the risk when and wherever you can. This is a huge part of being a successful trader after all. You win some and you lose some. There is no getting around that. What you can control is the size of the losses you incur and that can be done with a well placed stop loss. I see consolidation is likely over the weekend but that is nothing new. I hope the bulls can prove me wrong. I also hope the bears stay in hibernation... But then again WTFDIK right???
TLDR: Reached the top of the pattern. Its do or die now... We either break up or drop to support. Either way it should be exciting. Mitigate that risk where you can. Have a good weekend folks!
I have a descending resistance on the chart that the candles have been respecting for over a week. We havent been able to climb above this descending resistance and as a result we are consolidating between 9200 - 9600 approximately. Like I mentioned earlier we have plenty of support below us currently. The 4hr cloud is the first level I would look to that could provide support in the event of a retrace. We did bounce from the top of the cloud the last time we tested it and the next time we approach it their should be even more support which could make the path of least resistance an upward one.
Directly below the 4hr cloud we have the 50 and 200 MA's that should provide some support should the top of the cloud fail as support. This should stop us from falling into the abyss over the weekend. Although we could drop into this 4hr cloud nothing is certain and we should prepare ourselves for anything as traders. There is no guarantee that we dont break up out of this wedge pattern and see a higher high. I would really like to see 10500 get broken as I believe this would cause a bit of fomo and pump the price a bit more.
Either way you should set a stop loss. If you think we are going up or down it doesnt change the fact that you should negate the risk when and wherever you can. This is a huge part of being a successful trader after all. You win some and you lose some. There is no getting around that. What you can control is the size of the losses you incur and that can be done with a well placed stop loss. I see consolidation is likely over the weekend but that is nothing new. I hope the bulls can prove me wrong. I also hope the bears stay in hibernation... But then again WTFDIK right???
TLDR: Reached the top of the pattern. Its do or die now... We either break up or drop to support. Either way it should be exciting. Mitigate that risk where you can. Have a good weekend folks!
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.
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.