Bitcoin 4hr analysis 2-6-2021

BINANCE:BTCUSDT   Bitcoin / TetherUS
Good morning again ladies and gentlemen and 40k as well! We have broken resistance and things are looking good for BTC at the moment. The bulls have put on a show over night and reminded everyone of us (including me) not to underestimate the bulls. The alt coin market has taken a lot of the recent glory in the crypto market but it looks as if BTC is attempting to take some dominance back. But can it last? Lets take a look at the charts.

First of all I want to point out that we have overcome the bears and broke up from the small bullish triangle overnight. It looks as if we have a confirmation candle that indicates that we have successfully broken the resistance. Former resistance becomes support. Technical Analysis 101. I love passing off little helpful hints in my analysis. Most vets already understand former support becomes resistance and vice versa. Learning how to identify support and resistance and understanding exactly how they work is better than any indicator you can turn on. Keep that in mind when you are looking at a chart. You can have a billion lines on the chart. In the end it looks like a bowl of spaghetti.

I do enjoy keeping a few indicators on the chart such as the 50 MA and the 200 MA and the cloud specifically. Bollinger bands and MACD are also helpful. But I can certainly read a chart without these indicators. But I will say that I can appreciate the usefulness of these indicators and I leave them on to make it even easier on me. Just keep it simple. Decide on a few key indicators and stick with them. Learn them. Understand them. Then check out the lesser used indicators. Maybe you will lay that golden egg.

So here we are back at 40k. I had a feeling we would break up from the right ascending triangle on the chart. We topped out on this triangle 2 times this week. I was hesitant to mention it looked like a double top to me when I saw it recently which led me to believe we may not break up from this. But after waking up this morning I was pleasantly surprised and I will walk my stop loss up to lock in that profit. Easy peasy...

So the next hurdle sits around 42k. That will be the real test. I do like the fact we have started creating higher highs once again. All of the bullish factors I am bringing up certainly gives traders confidence to long this. Especially with the abundance of support below us on multiple time frames. If we do in fact break 42k I think 45k - 50k would be a possibility. But WTFDIK??? Make good choices folks!

TLDR: Bulls are awake early. And they drank some espresso

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