Good morning ladies and gentlemen and welcome back to my daily analysis of Bitcoin. Today I have the 4hr time frame pulled up after retracing from this years high of around 13880. We could not quite make it to last years high of 14k but dont count Bitcoin out just yet. The conditions were ripe for a retrace and I will explain why in this analysis. So crack a cold one and have a seat because we are about to chat about Bitcoin.
We were very clearly rejected around the 13880 level and retraced heavily. It should have been expected. RSI was so spent on multiple time frames along with the fact we had not seen a correction since we climbed to these levels last last week on the 21st. So as we coast along at about 13150 should we be looking up or down? The bears are not going to have an easy time taking us down more than we are. I mean it is possible... But the abundance of support just below us indicates to me that the path of least resistance is up.
With that being said I still would not enter any trade at the moment without a well placed stop loss. No need to jump out of the plane without a back up parachute. That is what a stop loss reminds me of. A back up parachute. Will you live if you jump without one? Probably. But why take the risk??? Okay back to the chart. There is an abundance of support just below us. First support I want to bring up is current support. The 4hr 50 MA is currently supporting the candles (The 4hr 50 MA is around 13050) If we lost the 4hr 50 MA today we may drop to the top border of the 4hr cloud which sits approximately around 12900 - 13100 over the course of the day today. Just below that we see the .236 fib (around 12900) which provided some support over the last 8 days. I would keep my eye on things though. If we lose these supports I mentioned blood could flow a bit.
Resistance isnt as easy to spot on the chart unless you can identify past resistance and I see some past resistance around 13350 where we got rejected October 24th. There is no guarantee that this level provides resistance but Im just covering all options here yall. I would rather be wrong and had you guys and gals on your toes than the alternative of being to complacent and losing money as a result. Bitcoin is a contrarian SOB. Just when you think you got it all figured out you see the candles break down instead of up like you assumed. I happens to me. But I guess that is the purpose of a stop loss after all.
I mentioned RSI earlier and RSI on the 4hr time frame looks much better since the dip yesterday. We are in the middle of the RSI chart and that could support a move either way. Daily RSI is just below the overbought territory so we may still retrace a bit. Nothing is written in stone though. RSI is a reliable indicator one day and the next we jump 1k even though RSI is already overbought. You would likely never expect that 1000 dollar gain if you only paid attention to RSI. But it happens. I guess fomo could partially be to blame. We are still sitting above 13k and Ill take that as a win. I hope you all have a great day. Make good choices folks! WTFDIK?????
TLDR: Retrace to 13k. We almost made it to 14k. 14k is likely the real hurdle ahead of us as it was last years high. Keep an eye on things. It could get juicy ( there is a lot of support between 12900 and 13100)
We were very clearly rejected around the 13880 level and retraced heavily. It should have been expected. RSI was so spent on multiple time frames along with the fact we had not seen a correction since we climbed to these levels last last week on the 21st. So as we coast along at about 13150 should we be looking up or down? The bears are not going to have an easy time taking us down more than we are. I mean it is possible... But the abundance of support just below us indicates to me that the path of least resistance is up.
With that being said I still would not enter any trade at the moment without a well placed stop loss. No need to jump out of the plane without a back up parachute. That is what a stop loss reminds me of. A back up parachute. Will you live if you jump without one? Probably. But why take the risk??? Okay back to the chart. There is an abundance of support just below us. First support I want to bring up is current support. The 4hr 50 MA is currently supporting the candles (The 4hr 50 MA is around 13050) If we lost the 4hr 50 MA today we may drop to the top border of the 4hr cloud which sits approximately around 12900 - 13100 over the course of the day today. Just below that we see the .236 fib (around 12900) which provided some support over the last 8 days. I would keep my eye on things though. If we lose these supports I mentioned blood could flow a bit.
Resistance isnt as easy to spot on the chart unless you can identify past resistance and I see some past resistance around 13350 where we got rejected October 24th. There is no guarantee that this level provides resistance but Im just covering all options here yall. I would rather be wrong and had you guys and gals on your toes than the alternative of being to complacent and losing money as a result. Bitcoin is a contrarian SOB. Just when you think you got it all figured out you see the candles break down instead of up like you assumed. I happens to me. But I guess that is the purpose of a stop loss after all.
I mentioned RSI earlier and RSI on the 4hr time frame looks much better since the dip yesterday. We are in the middle of the RSI chart and that could support a move either way. Daily RSI is just below the overbought territory so we may still retrace a bit. Nothing is written in stone though. RSI is a reliable indicator one day and the next we jump 1k even though RSI is already overbought. You would likely never expect that 1000 dollar gain if you only paid attention to RSI. But it happens. I guess fomo could partially be to blame. We are still sitting above 13k and Ill take that as a win. I hope you all have a great day. Make good choices folks! WTFDIK?????
TLDR: Retrace to 13k. We almost made it to 14k. 14k is likely the real hurdle ahead of us as it was last years high. Keep an eye on things. It could get juicy ( there is a lot of support between 12900 and 13100)
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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.