Good morning ladies and gentlemen and welcome back to my daily look into the inner workings of Bitcoin. Today I have the 4hr time frame pulled up after some gap filling pump action yesterday. Nice work bulls. Can the bulls keep this momentum going throughout the day today?? I threw a speed fan onto the chart this a.m. I havent put one on a chart in a good while and I thought it would fit well in todays analysis. I love the way fibonacci works on a chart. Many traders use the fibs on their chart which is why they tend to work so well. Even the fan is a work of art in my opinion. The candles match up beautifully with the chart. Anyways lets take a look at the chart.
First thing I want to mention is the gap. The gap was between 11480 and 11520 and was filled yesterday. So no more gap for us. At least not above us anyways. Below us there are still 3 lingering gaps at 3600 then one at 7600 and finally 1 more recent gap between 9600 - 9900 that was created during this very pump. I tell you all this not to scare you. Rather to educate you. Knowing your surroundings is a big part of trading. Nobody has a crystal ball so none of us are clairvoyant. These gaps tend to get filled within a week of forming for the most part but these 3 lingering gaps are still a thorn in the side of the bulls.
Next thing I want to discuss is the multitude of fibs on the chart. I know it may look a bit crowded on the chart but I just love the way the candles seem to respect the fibs I threw on the chart. Fibs are an amazing tool that I dont fully understand. What I do know is it works in trading like a charm. We beat the .236 traditional fib resistance yesterday and saw a decent climb when we did finally break through that resistance. When we did break through it shot us above the gap I mentioned earlier.
Speaking of fibs the speed fan (which is part of the fibonacci family) is working well on the chart as well. We are locked up with the .618 fan at the moment. Over the last 4 days or so we have found support and resistance around this .618 fan. The next real hurdle I see ahead of us is the previous high of 12135 approximately... That is this years high. I really think we can create that higher high. Especially with all the bullish sentiment about. I have polls over the past few days and the community as a whole is pretty bullish. And why not? We beat the 2.5 year resistance recently along with the fact that the halving is a few months old and people are expecting that post halving pump. That is a lot to be bullish about.
Whatever you do make sure you mitigate the risk when and where you can. No need to trade without a stop loss. Even if you set it way below. One of those huge red candles could stab us all in the back and those without a stop loss have no chance. Sure a stop loss doesnt work 100% of the time and I hear that every day. Even mine have not tripped in the past. But I still strongly recommend them. I say it almost every day but that is one thing I keep wanting to drive into noobs brains. Trading isnt all about raking up them gains. Its also about curtailing your losses and keeping them to a minimum. I lose approximately 50% of my trades I imagine. My stop losses make these losses minimum. I may lose only 50 - 100 bucks vs the alternative where I dont have stop loss and see my investment down 1500 dollars. We all know what Bitcoin is capable of. Mitigating risk is a huge part of trading and I will never stop trying to convince all my followers to use a stop loss. But then again WTFDIK right???
TLDR: I am bullish folks. No hiding the excitement here. We filled in that gap that formed above us last weekend and a new yearly high is within our reach. I know they say when you are happy, sell... But I think I will hold out a bit longer. Ill let my stop loss sell if a drop shows up. I am going to try my best to make a video on stop losses soon. People wont leave me alone about it and want to know where to set a stop loss. Stay tuned folks!
First thing I want to mention is the gap. The gap was between 11480 and 11520 and was filled yesterday. So no more gap for us. At least not above us anyways. Below us there are still 3 lingering gaps at 3600 then one at 7600 and finally 1 more recent gap between 9600 - 9900 that was created during this very pump. I tell you all this not to scare you. Rather to educate you. Knowing your surroundings is a big part of trading. Nobody has a crystal ball so none of us are clairvoyant. These gaps tend to get filled within a week of forming for the most part but these 3 lingering gaps are still a thorn in the side of the bulls.
Next thing I want to discuss is the multitude of fibs on the chart. I know it may look a bit crowded on the chart but I just love the way the candles seem to respect the fibs I threw on the chart. Fibs are an amazing tool that I dont fully understand. What I do know is it works in trading like a charm. We beat the .236 traditional fib resistance yesterday and saw a decent climb when we did finally break through that resistance. When we did break through it shot us above the gap I mentioned earlier.
Speaking of fibs the speed fan (which is part of the fibonacci family) is working well on the chart as well. We are locked up with the .618 fan at the moment. Over the last 4 days or so we have found support and resistance around this .618 fan. The next real hurdle I see ahead of us is the previous high of 12135 approximately... That is this years high. I really think we can create that higher high. Especially with all the bullish sentiment about. I have polls over the past few days and the community as a whole is pretty bullish. And why not? We beat the 2.5 year resistance recently along with the fact that the halving is a few months old and people are expecting that post halving pump. That is a lot to be bullish about.
Whatever you do make sure you mitigate the risk when and where you can. No need to trade without a stop loss. Even if you set it way below. One of those huge red candles could stab us all in the back and those without a stop loss have no chance. Sure a stop loss doesnt work 100% of the time and I hear that every day. Even mine have not tripped in the past. But I still strongly recommend them. I say it almost every day but that is one thing I keep wanting to drive into noobs brains. Trading isnt all about raking up them gains. Its also about curtailing your losses and keeping them to a minimum. I lose approximately 50% of my trades I imagine. My stop losses make these losses minimum. I may lose only 50 - 100 bucks vs the alternative where I dont have stop loss and see my investment down 1500 dollars. We all know what Bitcoin is capable of. Mitigating risk is a huge part of trading and I will never stop trying to convince all my followers to use a stop loss. But then again WTFDIK right???
TLDR: I am bullish folks. No hiding the excitement here. We filled in that gap that formed above us last weekend and a new yearly high is within our reach. I know they say when you are happy, sell... But I think I will hold out a bit longer. Ill let my stop loss sell if a drop shows up. I am going to try my best to make a video on stop losses soon. People wont leave me alone about it and want to know where to set a stop loss. Stay tuned folks!
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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.