Wakey Wakey eggs and bakey... Welcome back to my daily analysis of Bitcoin. Today I have the 4hr time frame pulled up and as you can see we are still sitting pretty right now above 12900. That is just fine by me Ill tell you what... The bulls have seemingly took the weekend off. Well deserved no doubt. But what will Monday bring us??? The crypto world is abuzz after the Paypal announcement. But as the dust settles what will this week look like? Lets take a look at what is going on..
This past week we really cleaned up and watched the candles rise over 1k. We even created a new yearly high last night. 12350 approximately is now the new high. We were rejected from this level pretty handily and now we are back at support. Support according to the trend drawn on the chart shows an ascending pattern that is around 12900 at the moment. I also drew ascending resistance (top line) which shows a clear trend. Remember the trend is your friend. Most of the time.
Looking below for possible support and I will discuss a few levels I think we could find support in the event of a drop. Typically these trends break down. Not always. Bitcoin is quite contrarian and as a result we could just as easily break up from this trend. Especially with the fomo and sentiment I have seen from the Bitcoin community as a whole lately. Just think less than 10 months ago we were at 3800 USD. Now we are almost 4x. If that is not a recovery I want to know what you are drinking.
My trading set up typically helps me make calls as to where support and resistance could lie. First I want to bring up the .236 fib (12500) we skipped right past this resistance on the way up so it may not provide much support on the way down either. I would still watch the 12500 level. The 4hr 50 MA is sneaking up the chart and should catch up to the candles in a matter of days. That is if we keep 12900 below us. Currently the 4hr 50 MA is sitting at 12300 so we could look for some support at this level. Just below the 4hr 50 MA we have the 4hr cloud. Tons of support below us helps me sleep better at night...
I wanted to bring up one more thing. The RSI is dropping and has fallen back under the overbought territory (its still close to being overbought but not quite) This looks bullish to me. We are ascending in the trend on the chart and then ultimately descending when you look at the RSI. How would this not be bullish? Maybe I am wrong. I know I have been wrong plenty of times in the past. But that is what they make a stop loss for right? I hope you all enjoy your Sunday. Make good choices! WTFDIK??
TLDR: The trend is your friend. Set a stop loss. Expect the worst and hope for the best. Hopium is abundant at the moment.
This past week we really cleaned up and watched the candles rise over 1k. We even created a new yearly high last night. 12350 approximately is now the new high. We were rejected from this level pretty handily and now we are back at support. Support according to the trend drawn on the chart shows an ascending pattern that is around 12900 at the moment. I also drew ascending resistance (top line) which shows a clear trend. Remember the trend is your friend. Most of the time.
Looking below for possible support and I will discuss a few levels I think we could find support in the event of a drop. Typically these trends break down. Not always. Bitcoin is quite contrarian and as a result we could just as easily break up from this trend. Especially with the fomo and sentiment I have seen from the Bitcoin community as a whole lately. Just think less than 10 months ago we were at 3800 USD. Now we are almost 4x. If that is not a recovery I want to know what you are drinking.
My trading set up typically helps me make calls as to where support and resistance could lie. First I want to bring up the .236 fib (12500) we skipped right past this resistance on the way up so it may not provide much support on the way down either. I would still watch the 12500 level. The 4hr 50 MA is sneaking up the chart and should catch up to the candles in a matter of days. That is if we keep 12900 below us. Currently the 4hr 50 MA is sitting at 12300 so we could look for some support at this level. Just below the 4hr 50 MA we have the 4hr cloud. Tons of support below us helps me sleep better at night...
I wanted to bring up one more thing. The RSI is dropping and has fallen back under the overbought territory (its still close to being overbought but not quite) This looks bullish to me. We are ascending in the trend on the chart and then ultimately descending when you look at the RSI. How would this not be bullish? Maybe I am wrong. I know I have been wrong plenty of times in the past. But that is what they make a stop loss for right? I hope you all enjoy your Sunday. Make good choices! WTFDIK??
TLDR: The trend is your friend. Set a stop loss. Expect the worst and hope for the best. Hopium is abundant at the moment.
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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.