Good morning everyone and welcome back to my daily analysis of Bitcoin. Today I have the 4hr pulled up once again after a short lived drop below the 9k mark briefly yesterday. The 9k support ultimately held and we are sitting at 9100 at the moment. The more time that is passing the more likely a drop will materialize. I am seeing a few areas that wont be easy to break through above us. More and more resistance is building up and I will go over that in this analysis. So get ready to have your mind blown.
First of all lets discuss the drop. When you see a pattern like that you can assume it will likely break down. Now we all know BTC likes to be contrarian and someone will likely disagree with my take but typically these patterns ultimately break down. Its good to know these things if you plan to trade. These patterns are noticed by many traders and that is why they work. The more traders that see a pattern the better the move will be. Also it depends on time frames a bit. If you see a pattern on the 12 min chart that is a lesser used chart therefore the move wont be major. If you are looking at the daily more traders pay attention to the daily time frame and that is why you see bigger moves. But cycling through the more used time frames is still highly recommended.
Right now we are finding support around 9100 on the bottom border of the 4hr cloud. Not a great place to be. We do still have some support in the .236 fib below us (8800 approximately) but if that fails it wont be good news for those who refused to close their longs or set a stop loss. Below that the lower 8k region would likely be where support would develop thanks the the daily cloud and the daily 200 MA. They are both merged (or close to it) around 8200 - 8350) So if we do fall Im looking at support from this level.
Nothing is certain and Im definitely not clairvoyant. But I do like to know my surroundings and look at all the possibilities. Be ready for anything and dont get impatient. Right now I can see a possible continuation pattern forming off the drop yesterday. If that does materialize we could see 8800 before the weekend ends. Now this isnt written in stone folks so dont go remortgage the house on account of this analysis. We all know how stubborn BTC can be. Ive been expecting a drop for a while now but the bulls have held us up surprisingly well and I must say Im impressed. Perhaps its that post halving fomo still keeping us above 9k? Whatever it is it is working. But how long can they hold the market above 9k? The more we test it the more likely we are going to fall through and over the last few months we have tested it quite a bit.
I hope that the 4hr cloud can hold and we can jump back above the 4hr 50 MA but I can say now that I am not expecting it. If it doesnt we can expect moderate to severe storms over the weekend with lows in the mid 8000's. Make sure you bring an umbrella folks! I love when the bulls run the charts but the market is certainly cyclical and what goes up will come down. This analysis is not guaranteed. It never is folks. But one great piece of advice you should follow is have a trading plan, stick to it, and set a smart stop loss. But then again WTFDIK right?
TLDR: Thanks to all my followers for their continued support! I love you all and thank you for all you do.
First of all lets discuss the drop. When you see a pattern like that you can assume it will likely break down. Now we all know BTC likes to be contrarian and someone will likely disagree with my take but typically these patterns ultimately break down. Its good to know these things if you plan to trade. These patterns are noticed by many traders and that is why they work. The more traders that see a pattern the better the move will be. Also it depends on time frames a bit. If you see a pattern on the 12 min chart that is a lesser used chart therefore the move wont be major. If you are looking at the daily more traders pay attention to the daily time frame and that is why you see bigger moves. But cycling through the more used time frames is still highly recommended.
Right now we are finding support around 9100 on the bottom border of the 4hr cloud. Not a great place to be. We do still have some support in the .236 fib below us (8800 approximately) but if that fails it wont be good news for those who refused to close their longs or set a stop loss. Below that the lower 8k region would likely be where support would develop thanks the the daily cloud and the daily 200 MA. They are both merged (or close to it) around 8200 - 8350) So if we do fall Im looking at support from this level.
Nothing is certain and Im definitely not clairvoyant. But I do like to know my surroundings and look at all the possibilities. Be ready for anything and dont get impatient. Right now I can see a possible continuation pattern forming off the drop yesterday. If that does materialize we could see 8800 before the weekend ends. Now this isnt written in stone folks so dont go remortgage the house on account of this analysis. We all know how stubborn BTC can be. Ive been expecting a drop for a while now but the bulls have held us up surprisingly well and I must say Im impressed. Perhaps its that post halving fomo still keeping us above 9k? Whatever it is it is working. But how long can they hold the market above 9k? The more we test it the more likely we are going to fall through and over the last few months we have tested it quite a bit.
I hope that the 4hr cloud can hold and we can jump back above the 4hr 50 MA but I can say now that I am not expecting it. If it doesnt we can expect moderate to severe storms over the weekend with lows in the mid 8000's. Make sure you bring an umbrella folks! I love when the bulls run the charts but the market is certainly cyclical and what goes up will come down. This analysis is not guaranteed. It never is folks. But one great piece of advice you should follow is have a trading plan, stick to it, and set a smart stop loss. But then again WTFDIK right?
TLDR: Thanks to all my followers for their continued support! I love you all and thank you for all you do.
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.