Bitcoin 4hr analysis 12-13-2020
Good morning ladies and gentlemen and welcome back to my daily look into the crazy world we call Bitcoin. Today I have the 4hr time frame pulled up after retaking some support lost over the last week. We will see the weekly close tonight in around 9 and a half hours or 10 and a half. That daylight savings time always messes me up. Regardless of what time the weekly closes this pump we saw this morning sure makes the weekly candle look much better in the eyes of the bulls. More on that in a bit. Anyways I hope you are all making plenty of money! I forgot to reenter and missed this pump... Live and learn. Lets take a look at the charts this morning.
I see we beat the 4hr 50 MA. I really dont feel like you have conquered any indicator like the 50 MA unless you climb above the orange line and actually close that candle above the 50 MA along with the following candle. That following candles is referred to as a "confirmation candle" and are really important IMO. If you jump the gun upon that first break of the 50 MA you will find out quick that wicks commonly break the line and a retreat occurs which results in the candle ultimately closing below the resistance. Yes we did break above it briefly. But it didnt stick. This is why I prefer a confirmation candle before entry is even an option for me.
After we broke the 4hr 50 MA and confirmed the break by closing a few 4hr candles above it we continued our trek up the charts. The 4hr cloud was less than 200 dollars above the 50 MA . Which was discouraging to many including myself. When resistance is stacked up like that its easy to doubt the bulls but they came through. I guess retaking the 4hr 50 MA gave us the fuel we needed to finish the job and retake the cloud too. Now we are above all of my traditional setup. (4hr 50 MA, 4hr 200 MA, and the ichi cloud) when you are above these indicators its considered bullish and we are above them all in the top time frames (4hr daily and weekly)
Now that we beat the 4hr 50 MA and the 4hr ichi cloud what is next? Well all this bullishness could result in a gap below us. When price moves on the weekend a gap is typically the result. Gaps almost always fill right away but there are at least 4 on the chart as I type. One as old as 2 years. I think its even older. These gaps are something we should keep an eye on. Most fill in hours of the CME opening up tomorrow. Id say 95% fill within the first Monday of forming. The next option would be the gaps filling within a week of forming. This typically happens when a gap is bigger than 500 USD. Sometimes those gaps only fill half way or whatever and the rest will fill later. This accounts for roughly 4% and 1% are unfilled gaps. There are like 4 or 5 on the chart. All the way down in the 3k range. I like to keep up with the gaps but I think they are still not fully understood.
I mentioned the weekly time frame earlier. The current look of the current weekly candle is bullish IMO. It is technically a doji at the top of an uptrennd but this doji doesnt look bearish. It looks bullish because of the dip. This week we dipped to around 17k and that wick looks deep. It shows me that the bulls were ready to buy when BTC dropped to those levels. We jumped right back up in that same weekly candle. So I am optimistic.
This past week tested the patience of traders everywhere. I know people were saying we were going to 12k. Dont let them discourage you. Perhaps they are right? So what? A drop to 12k would be just as much of an opportunity as a rise to 25k. This market is full of opportunity. All you need to do is recognize them. I cant guarantee we break above 20k before the years end but I can not rule that out either. We all know how close we are. 700 dollars away as I type. That is a stones throw for Bitcoin. But 20k is one of the strongest resistances Bitcoin will ever face in its short life I think we can and just might break that resistance down before December 31st 2020. I can not promise this but if we do not break it by 2021 we may retreat down the chart. I think the stock market may take a small hit next year and if that does happen Bitcoin may or may not follow it. I think Bitcoin will ultimately excel no matter who is president.
I also want to take a second to thank all of my followers. You guys have been so supportive and understanding. I dont get everything right and Ill be the first to admit that. But you guys and gals have stuck by my side and for that I couldnt be more appreciative. I look forward to sharing my thoughts with you all every day, and I hope you all enjoy reading my thoughts daily. I get chatty while I sip my coffee and that is how I type my analysis daily. A cup of coffee. I am learning more and more the longer I do this which means I can provide you all with more legit analysis. I plan to keep going til I cant do it anymore. 2020 may have been rough on the world but Bitcoin showed us all that you can knock it down, but it will get right back up. Lets make 2021 shine. Cheers everyone!
Oh ya, I hope you all have a great day and make good choices my friends! WTFDIK???
TLDR: Bulls are awake. We are above the 50 MA and the 200 MA and the cloud on all major time frames. Things look good. Set a stop loss!
I see we beat the 4hr 50 MA. I really dont feel like you have conquered any indicator like the 50 MA unless you climb above the orange line and actually close that candle above the 50 MA along with the following candle. That following candles is referred to as a "confirmation candle" and are really important IMO. If you jump the gun upon that first break of the 50 MA you will find out quick that wicks commonly break the line and a retreat occurs which results in the candle ultimately closing below the resistance. Yes we did break above it briefly. But it didnt stick. This is why I prefer a confirmation candle before entry is even an option for me.
After we broke the 4hr 50 MA and confirmed the break by closing a few 4hr candles above it we continued our trek up the charts. The 4hr cloud was less than 200 dollars above the 50 MA . Which was discouraging to many including myself. When resistance is stacked up like that its easy to doubt the bulls but they came through. I guess retaking the 4hr 50 MA gave us the fuel we needed to finish the job and retake the cloud too. Now we are above all of my traditional setup. (4hr 50 MA, 4hr 200 MA, and the ichi cloud) when you are above these indicators its considered bullish and we are above them all in the top time frames (4hr daily and weekly)
Now that we beat the 4hr 50 MA and the 4hr ichi cloud what is next? Well all this bullishness could result in a gap below us. When price moves on the weekend a gap is typically the result. Gaps almost always fill right away but there are at least 4 on the chart as I type. One as old as 2 years. I think its even older. These gaps are something we should keep an eye on. Most fill in hours of the CME opening up tomorrow. Id say 95% fill within the first Monday of forming. The next option would be the gaps filling within a week of forming. This typically happens when a gap is bigger than 500 USD. Sometimes those gaps only fill half way or whatever and the rest will fill later. This accounts for roughly 4% and 1% are unfilled gaps. There are like 4 or 5 on the chart. All the way down in the 3k range. I like to keep up with the gaps but I think they are still not fully understood.
I mentioned the weekly time frame earlier. The current look of the current weekly candle is bullish IMO. It is technically a doji at the top of an uptrennd but this doji doesnt look bearish. It looks bullish because of the dip. This week we dipped to around 17k and that wick looks deep. It shows me that the bulls were ready to buy when BTC dropped to those levels. We jumped right back up in that same weekly candle. So I am optimistic.
This past week tested the patience of traders everywhere. I know people were saying we were going to 12k. Dont let them discourage you. Perhaps they are right? So what? A drop to 12k would be just as much of an opportunity as a rise to 25k. This market is full of opportunity. All you need to do is recognize them. I cant guarantee we break above 20k before the years end but I can not rule that out either. We all know how close we are. 700 dollars away as I type. That is a stones throw for Bitcoin. But 20k is one of the strongest resistances Bitcoin will ever face in its short life I think we can and just might break that resistance down before December 31st 2020. I can not promise this but if we do not break it by 2021 we may retreat down the chart. I think the stock market may take a small hit next year and if that does happen Bitcoin may or may not follow it. I think Bitcoin will ultimately excel no matter who is president.
I also want to take a second to thank all of my followers. You guys have been so supportive and understanding. I dont get everything right and Ill be the first to admit that. But you guys and gals have stuck by my side and for that I couldnt be more appreciative. I look forward to sharing my thoughts with you all every day, and I hope you all enjoy reading my thoughts daily. I get chatty while I sip my coffee and that is how I type my analysis daily. A cup of coffee. I am learning more and more the longer I do this which means I can provide you all with more legit analysis. I plan to keep going til I cant do it anymore. 2020 may have been rough on the world but Bitcoin showed us all that you can knock it down, but it will get right back up. Lets make 2021 shine. Cheers everyone!
Oh ya, I hope you all have a great day and make good choices my friends! WTFDIK???
TLDR: Bulls are awake. We are above the 50 MA and the 200 MA and the cloud on all major time frames. Things look good. Set a stop loss!
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