Good morning ladies and gentlemen and welcome back to my daily analysis of Bitcoin. Today I have the 4hr pulled up after some more of the same old same old. We managed to cling to 5 figure Bitcoin for the time being. I see things that give me hope to see a recovery though and I will discuss these in this analysis. The weekend tends to be a little less active than the weekdays from my experience but anything can and usually does happen in the crazy world that we call Bitcoin. So put your life jacket on and lets splash into this analysis...
I have been watching us consolidate for days between 9800 which is bottom line support up to 10400 (approximately) and I think we get a bit spoiled with these big swings BTC has. I mean a good trader can make plenty of money off these 600 dollar swings. Bitcoin can go up 15% in a matter of an hour. After swings like that its easy to understand why crypto traders are a bit spoiled. But dont forget that what goes up must come down. The market is cyclical. It goes up and down. People buy and people sell and this provides the liquidity necessary for this market to function. The markets have enjoyed a degree of predictability continuously bouncing from the upper 9k range back to around 10300. But I dont see this predictability lasting much longer.
I see the outlook changing as we paint candles onto the chart. We entered the 4hr cloud over night and that could add to the consolidation we have been dealing with all week. The cloud is known to be a constrictive indicator that sort of traps the candles within the border. Being above the cloud is bullish and below is bearish. Being inside of the cloud is sort of in the middle. From the looks of it we may spend the entire weekend inside the 4hr cloud. I see a triangle forming which is compressing the candles. If this continues I see a break out coming. The 4hr bollinger bands also indicate that a break out is coming. The 4hr bollinger bands are really tight and that combined with the triangle we are in can indicate a big move is coming. Lets just hope the bulls push us up out of the cloud.
We still havent filled the gaps I drew on the chart earlier this week. Im going to leave them on there til I get sick of them being there. Hopefully we can fill the gap below us really quick and jump back up after. I dont like having gaps below us. Although that will be tough to avoid as there are gaps below us at 9600, 7600, and 3600 approximately. I dont think we fill in the 7600 or 3600 gap anytime soon, but I like to know what my surroundings are and I think the more you know the better decisions you can make as a trader.
I also see the 2.5 year descending trend line I have on the chart could provide some much needed support if the bears are not finished with their relentless attack. Around 9300 there is a strong trend line and I expect it to provide some support in the event of a drop. Especially since this trend line was resistance for 2.5 years. Now it should provide support. Im not saying we will test the trend line at all. I just like to be aware of my surroundings just in case. Knowing where support and resistance lies can help you so much when setting your stop losses and taking profit etc.
Consolidation is the name of the game over the past week. We have seen 4 figure BTC a few times but it never lasts long. Every daily candle this week shows a deep wick into the upper 9k range but it always recovers to 10k + just before the daily close. Deep wicks are more bullish as it shows the market is buying at these levels. I am eager to see which way the coming break out will happen. Just a hunch but since we put the 4hr 50 MA below us and it is now providing support to the candles we may just have the platform we need for a healthy rocket launch. Only time will tell for sure. Lets hope the 4hr cloud doesnt dampen the bulls efforts to break up from this cloud cover. I hope you all enjoy your Saturday. Make good choices! WTFDIK???
TLDR: I am liking what I see on the chart. We have more support below us than we did yesterday and I consider that a win. 4hr bollinger bands are tight. We are in a tight triangle. I see a breakout coming soon. Lets hope the 4hr 50 MA holds and we can break up from here.
I have been watching us consolidate for days between 9800 which is bottom line support up to 10400 (approximately) and I think we get a bit spoiled with these big swings BTC has. I mean a good trader can make plenty of money off these 600 dollar swings. Bitcoin can go up 15% in a matter of an hour. After swings like that its easy to understand why crypto traders are a bit spoiled. But dont forget that what goes up must come down. The market is cyclical. It goes up and down. People buy and people sell and this provides the liquidity necessary for this market to function. The markets have enjoyed a degree of predictability continuously bouncing from the upper 9k range back to around 10300. But I dont see this predictability lasting much longer.
I see the outlook changing as we paint candles onto the chart. We entered the 4hr cloud over night and that could add to the consolidation we have been dealing with all week. The cloud is known to be a constrictive indicator that sort of traps the candles within the border. Being above the cloud is bullish and below is bearish. Being inside of the cloud is sort of in the middle. From the looks of it we may spend the entire weekend inside the 4hr cloud. I see a triangle forming which is compressing the candles. If this continues I see a break out coming. The 4hr bollinger bands also indicate that a break out is coming. The 4hr bollinger bands are really tight and that combined with the triangle we are in can indicate a big move is coming. Lets just hope the bulls push us up out of the cloud.
We still havent filled the gaps I drew on the chart earlier this week. Im going to leave them on there til I get sick of them being there. Hopefully we can fill the gap below us really quick and jump back up after. I dont like having gaps below us. Although that will be tough to avoid as there are gaps below us at 9600, 7600, and 3600 approximately. I dont think we fill in the 7600 or 3600 gap anytime soon, but I like to know what my surroundings are and I think the more you know the better decisions you can make as a trader.
I also see the 2.5 year descending trend line I have on the chart could provide some much needed support if the bears are not finished with their relentless attack. Around 9300 there is a strong trend line and I expect it to provide some support in the event of a drop. Especially since this trend line was resistance for 2.5 years. Now it should provide support. Im not saying we will test the trend line at all. I just like to be aware of my surroundings just in case. Knowing where support and resistance lies can help you so much when setting your stop losses and taking profit etc.
Consolidation is the name of the game over the past week. We have seen 4 figure BTC a few times but it never lasts long. Every daily candle this week shows a deep wick into the upper 9k range but it always recovers to 10k + just before the daily close. Deep wicks are more bullish as it shows the market is buying at these levels. I am eager to see which way the coming break out will happen. Just a hunch but since we put the 4hr 50 MA below us and it is now providing support to the candles we may just have the platform we need for a healthy rocket launch. Only time will tell for sure. Lets hope the 4hr cloud doesnt dampen the bulls efforts to break up from this cloud cover. I hope you all enjoy your Saturday. Make good choices! WTFDIK???
TLDR: I am liking what I see on the chart. We have more support below us than we did yesterday and I consider that a win. 4hr bollinger bands are tight. We are in a tight triangle. I see a breakout coming soon. Lets hope the 4hr 50 MA holds and we can break up from here.
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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.