Good morning everyone and welcome to the month of June along with my daily analysis of Bitcoin. Today I have to 1 day time frame pulled up after a pretty sideways weekend. I see no noticeable gaps in play at least from this past weekend. But we are in solid consolidation and the longer we stay here the more likely a break out will show its face. We will have to keep an eye on this. Lets take a look at what the chart is telling us.
I see that we are in solid consolidation just below 10k. The descending resistance of the triangle we are currently inside of is dropping every test. This is creating lower highs as a result which is an indicator that a trend could be reversing. Nothing is written in stone quite yet but we can see we were in a solid uptrend for nearly 2 months. Now we are finding some resistance at 10k. Traders taking profit is just part of a healthy market and it happens every day.
We are still respecting the resistance flipped to support now. Every time we test it we bounce from there but if this support were to fail we can see a significant drop. It will likely remove confidence in the market and a sell off will be likely... I guess you could call this a form of fomo as well. Still this market is cyclical and if you missed this recent climb worry not. You will get another chance at bat and you can hit a home run with the next trade.
I mentioned the former resistance which is now support in the paragraph above. This is what I am watching currently. If we drop below approximately 8900 we may see a bit of a drop for a few reasons but mostly people fear of missing out and panic sellers etc. They all create the perfect storm that could easily take the market down to the mid 7k region... The reason I mention the mid 7k region is there is an older gap there from a few months back. Its a tiny gap but its there.
Now I dont want to alarm anyone. We could burst through current resistance and create that higher high we all desire to see (that is unless you are a bear) The real higher high I really want to see is a candle that gets above 10500. If we could somehow get there fomo could take over and send us to a gap that is above us. The gap at 11800ish.
Now I have mentioned these gaps before and I keep them in the back of my mind. But I wouldnt expect a perfect scenario where we fill the 11800 gap tomorrow. Can Bitcoin do it? Absolutely. But current conditions to me indicate a possible drop is in our future. I hope I am wrong about this but after being rejected by resistance above and inching closer to the end of this triangle pattern I am starting to hear the bears congregating.
These markets are cyclical and nothing goes up forever. We have to look back to March 13. We dipped to 3800 that day. Since we broke back above 10k briefly a few times. That is nearly 3X in less than 2 months. That is an amazing turnaround. I wish other markets would bounce back (especially oil considering the fact I work in the industry) But you and I both know that the market cap for oil is huge. Bitcoin is still small enough to enjoy big moves and as long as you are prepared to mitigate losses and be vigilant you can profit from this market. Easier said than done I know... Just stick with the plan! But WTFDIK right????
TLDR: Someone wake the bulls up!!!
I see that we are in solid consolidation just below 10k. The descending resistance of the triangle we are currently inside of is dropping every test. This is creating lower highs as a result which is an indicator that a trend could be reversing. Nothing is written in stone quite yet but we can see we were in a solid uptrend for nearly 2 months. Now we are finding some resistance at 10k. Traders taking profit is just part of a healthy market and it happens every day.
We are still respecting the resistance flipped to support now. Every time we test it we bounce from there but if this support were to fail we can see a significant drop. It will likely remove confidence in the market and a sell off will be likely... I guess you could call this a form of fomo as well. Still this market is cyclical and if you missed this recent climb worry not. You will get another chance at bat and you can hit a home run with the next trade.
I mentioned the former resistance which is now support in the paragraph above. This is what I am watching currently. If we drop below approximately 8900 we may see a bit of a drop for a few reasons but mostly people fear of missing out and panic sellers etc. They all create the perfect storm that could easily take the market down to the mid 7k region... The reason I mention the mid 7k region is there is an older gap there from a few months back. Its a tiny gap but its there.
Now I dont want to alarm anyone. We could burst through current resistance and create that higher high we all desire to see (that is unless you are a bear) The real higher high I really want to see is a candle that gets above 10500. If we could somehow get there fomo could take over and send us to a gap that is above us. The gap at 11800ish.
Now I have mentioned these gaps before and I keep them in the back of my mind. But I wouldnt expect a perfect scenario where we fill the 11800 gap tomorrow. Can Bitcoin do it? Absolutely. But current conditions to me indicate a possible drop is in our future. I hope I am wrong about this but after being rejected by resistance above and inching closer to the end of this triangle pattern I am starting to hear the bears congregating.
These markets are cyclical and nothing goes up forever. We have to look back to March 13. We dipped to 3800 that day. Since we broke back above 10k briefly a few times. That is nearly 3X in less than 2 months. That is an amazing turnaround. I wish other markets would bounce back (especially oil considering the fact I work in the industry) But you and I both know that the market cap for oil is huge. Bitcoin is still small enough to enjoy big moves and as long as you are prepared to mitigate losses and be vigilant you can profit from this market. Easier said than done I know... Just stick with the plan! But WTFDIK right????
TLDR: Someone wake the bulls up!!!
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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.