Good morning everyone and welcome back to my daily look into the world of Bitcoin. Today I have the 4hr time frame pulled up after a rejection at 11k yesterday. No sweat though. We climbed a long way from the recent lows of 9800 and after all the blood we recently saw in the streets I will take what I can get in terms of gains. I see a few things I wanted to go over with you all so lets go over the charts a bit.
I see that we were pretty much stopped when we reached the 4hr 200 MA above us. I like the 200 MA as an indicator on any time frame. It is a reliable indicator that shows you at the very least where support and resistance will show its face. As we can see the gains stopped at the 4hr 200 MA. At least for now anyways. I should also mention the fact that the .382 fib is also tied up with the 4hr 200 MA which makes it double the resistance and as a result may not be easy to break through.
Now that we got resistance out of the way, lets take a look at support. I see that we currently are enjoying the support of the .5 fib which is around 10775. This also happens to be approximately where the bottom border of the daily cloud is. We are inside of the daily cloud currently so the bottom border is providing support. If that fails we can look to previous levels of support for comfort but only time will tell if they will hold for sure in the event of a drop.
I am getting very far ahead of myself but I am just going to mention this today unless the formation looks like its going to complete. It just looks like a cup and handle is forming on the 4hr. But to be fair we still have some work to do. We would need to climb to around 12k and then form a handle for this to come true. Call it hopium or whatever you want but I just thought I would mention it.
We have a lot more support currently than we did 1 week ago. I will celebrate any wins I can at this point. The bears showed us last week that they are still alive and well. Now is the bulls time to strike back though. I am optimistic thanks to all of the new support we recently obtained but Im also realistic. Ive seen Bitcoin drop through mountains of support. So I suggest setting a stop loss if you want to go long here. Sentiment is growing more bullish by the day. Im eager to see where the bulls can take us short term. Have a great day everyone. Make good choices. WTFDIK???
TLDR: Left the 4hr cloud behind. Now we are inside the daily cloud. Sentiment is growing more bullish. Set a stop loss!!!
I see that we were pretty much stopped when we reached the 4hr 200 MA above us. I like the 200 MA as an indicator on any time frame. It is a reliable indicator that shows you at the very least where support and resistance will show its face. As we can see the gains stopped at the 4hr 200 MA. At least for now anyways. I should also mention the fact that the .382 fib is also tied up with the 4hr 200 MA which makes it double the resistance and as a result may not be easy to break through.
Now that we got resistance out of the way, lets take a look at support. I see that we currently are enjoying the support of the .5 fib which is around 10775. This also happens to be approximately where the bottom border of the daily cloud is. We are inside of the daily cloud currently so the bottom border is providing support. If that fails we can look to previous levels of support for comfort but only time will tell if they will hold for sure in the event of a drop.
I am getting very far ahead of myself but I am just going to mention this today unless the formation looks like its going to complete. It just looks like a cup and handle is forming on the 4hr. But to be fair we still have some work to do. We would need to climb to around 12k and then form a handle for this to come true. Call it hopium or whatever you want but I just thought I would mention it.
We have a lot more support currently than we did 1 week ago. I will celebrate any wins I can at this point. The bears showed us last week that they are still alive and well. Now is the bulls time to strike back though. I am optimistic thanks to all of the new support we recently obtained but Im also realistic. Ive seen Bitcoin drop through mountains of support. So I suggest setting a stop loss if you want to go long here. Sentiment is growing more bullish by the day. Im eager to see where the bulls can take us short term. Have a great day everyone. Make good choices. WTFDIK???
TLDR: Left the 4hr cloud behind. Now we are inside the daily cloud. Sentiment is growing more bullish. Set a stop loss!!!
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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.