Good morning everyone and welcome to my daily analysis of Bitcoin. Today I have the 4hr time frame pulled up after a decent showing from the bulls yesterday evening. We pierced the top of the 4hr cloud and that bullishness took us all the way to 9650 before the trend rejected us and sent us back to support. The bears and the bulls will likely play a little ping pong in this tightened area of consolidation. Lets take a look at the chart.
The more time passes the lower resistance gets. Which explains the lower highs. In periods of consolidation this is to be expected. The pattern tightens and as a result volatility seemingly builds up and "explodes" in the form of a break out. There are a lot of factors that go into judging a break outs direction from understanding RSI to identifying support and resistance and more no doubt. We have been respecting the resistance above us since early May and last night was no different. We got rejected at the trend resistance and fell.
We did find support upon the 4hr cloud. We are technically still above it for now so that should be considered a win in the bulls column. But truth be told we could fall into that cloud any minute by the looks of it. Especially as the western hemisphere wakes up and sees the trend rejection. I dont expect a huge bear move but I could see further sell offs. Its just the way these patterns work. Up than down til a break out occurs. We have been consolidating in this pattern for almost a month now and if things remain the same for an extended period our likely future lies between 8700 and 9500 currently. But with every passing candle that 9500 number drops a bit.
If we can break up from this pattern what awaits us above? Well we have an age old gap that has been on the chart since last year. Its at approximately 11800 and I have been eagerly awaiting the candles to fill this gap. Their are other old gaps on the chart as well. One at 3500 approximately and one at 7600ish. I dont sit here waiting for gaps to fill but I do like to remember where they are.
I could see us finding support upon the 4hr cloud and possibly retesting the trend resistance this a.m. but that is more wishful thinking than anything. But maybe I am wrong. After being rejected from the trend resistance I am just not confident that the bulls wake up this morning ready to wreck shop. I hope I am wrong. We will certainly see shortly. In the mean time keep that stop loss set folks. We could go as low as 8700 if the bears are hungry... But then again WTFDIK right?
TLDR: We are consolidating in this wedge pattern. We got rejected from the resistance above. Found support on the 4hr cloud. More red could be in our future. We will see as the west wakes up this a.m. if they want to fomo or sell like the other bears.
The more time passes the lower resistance gets. Which explains the lower highs. In periods of consolidation this is to be expected. The pattern tightens and as a result volatility seemingly builds up and "explodes" in the form of a break out. There are a lot of factors that go into judging a break outs direction from understanding RSI to identifying support and resistance and more no doubt. We have been respecting the resistance above us since early May and last night was no different. We got rejected at the trend resistance and fell.
We did find support upon the 4hr cloud. We are technically still above it for now so that should be considered a win in the bulls column. But truth be told we could fall into that cloud any minute by the looks of it. Especially as the western hemisphere wakes up and sees the trend rejection. I dont expect a huge bear move but I could see further sell offs. Its just the way these patterns work. Up than down til a break out occurs. We have been consolidating in this pattern for almost a month now and if things remain the same for an extended period our likely future lies between 8700 and 9500 currently. But with every passing candle that 9500 number drops a bit.
If we can break up from this pattern what awaits us above? Well we have an age old gap that has been on the chart since last year. Its at approximately 11800 and I have been eagerly awaiting the candles to fill this gap. Their are other old gaps on the chart as well. One at 3500 approximately and one at 7600ish. I dont sit here waiting for gaps to fill but I do like to remember where they are.
I could see us finding support upon the 4hr cloud and possibly retesting the trend resistance this a.m. but that is more wishful thinking than anything. But maybe I am wrong. After being rejected from the trend resistance I am just not confident that the bulls wake up this morning ready to wreck shop. I hope I am wrong. We will certainly see shortly. In the mean time keep that stop loss set folks. We could go as low as 8700 if the bears are hungry... But then again WTFDIK right?
TLDR: We are consolidating in this wedge pattern. We got rejected from the resistance above. Found support on the 4hr cloud. More red could be in our future. We will see as the west wakes up this a.m. if they want to fomo or sell like the other bears.
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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.