Good morning everyone and welcome to my daily analysis of Bitcoin. Today I have the 4hr pulled up once again. I like the 4hr time frame a lot. It is not as used as the daily in my opinion but its just right for me. Right in the middle of the larger time frames but still a bit too large for quick trading. When people make multiple trades per day they stick to the time frames that are smaller like the 1 hr 15 min and even the 1 second time frame is available if you pay enough. Dont ask me why anyone would try and keep up with 1 second candles but apparently people do use them with varying success. Anyways I typically only make a few trades per day max therefore I stick with the larger time frames. Although I must admit at times I look as low as the 15 min time frame just to see if anything looks like its setting up for a bigger move. This is what all traders should do. Look at all the time frames that are popular. 1 week, 1 day, 4hr, 1hr, 30 min, 15 min and so on. It is just smart to explore the other time frames. The more you know.... Anyways lets take a look at the chart.
The 8800 support I called yesterday is currently holding for now. The 4hr 200 MA along with the .236 fib (red line) and even the weekly 50 MA are all pretty much merged right in the 8600 - 8800 range and this is likely why we are seeing some consolidation at this point. The drop from the uptrend we were in for over 9 weeks is troubling for the bulls no doubt. But the Aurox indicator is suggesting we go up a bit from here which could very well mean we will test trend support again. But this time it will be resistance unless we can climb back over. Remember that support flips to resistance and vice versa. If we cannot beat the trend support and climb back into the uptrend we will likely see more red before we go back up. I see some support around 8200 if we do drop so keep that in mind.
There really is still a lot of support below us on multiple time frames. The daily cloud is under us along with the daily 50 MA and the daily 200 MA. Its nice to know all that support is below us in the event of a drop. Its like when you fall from a tree and you hit branches on the way down... They slow you down!! Not so fun if you are the one falling but if it is Bitcoin I like the support slowing our descent. Of course I have also seen the candles completely disregard the support below as well. Just be on guard and make sure you mitigate the risk with a stop loss.
There is a small gap above us from 9080 - 9140 approximately so I would keep my eyes on this price range as well. Even though I am still thinking we go down we may see a leg up just to fill in the gap before this goes down. These gaps usually fill rather quickly although there are some that have been around for over a year. I think there are 4 or 5 active gaps that stretch back over 1 year. So that shows that 9 times out of 10 these gaps fill in rather quickly. But not always. If you are going to use the gap strategy the best advice I can give you is set a stop loss just in case. But that really goes for any trade you enter. I hope you are all enjoying your Monday folks. But then again WTFDIK right?
TLDR: We may retest trend support (now resistance) Aurox indicator suggests another leg up but I dont expect a lot from the confined area we are in. If we cant break back into that uptrend we will likely see red candles. There is a small gap above us too between 9080 and 9140. Trade with caution folks. It could get ugly.
The 8800 support I called yesterday is currently holding for now. The 4hr 200 MA along with the .236 fib (red line) and even the weekly 50 MA are all pretty much merged right in the 8600 - 8800 range and this is likely why we are seeing some consolidation at this point. The drop from the uptrend we were in for over 9 weeks is troubling for the bulls no doubt. But the Aurox indicator is suggesting we go up a bit from here which could very well mean we will test trend support again. But this time it will be resistance unless we can climb back over. Remember that support flips to resistance and vice versa. If we cannot beat the trend support and climb back into the uptrend we will likely see more red before we go back up. I see some support around 8200 if we do drop so keep that in mind.
There really is still a lot of support below us on multiple time frames. The daily cloud is under us along with the daily 50 MA and the daily 200 MA. Its nice to know all that support is below us in the event of a drop. Its like when you fall from a tree and you hit branches on the way down... They slow you down!! Not so fun if you are the one falling but if it is Bitcoin I like the support slowing our descent. Of course I have also seen the candles completely disregard the support below as well. Just be on guard and make sure you mitigate the risk with a stop loss.
There is a small gap above us from 9080 - 9140 approximately so I would keep my eyes on this price range as well. Even though I am still thinking we go down we may see a leg up just to fill in the gap before this goes down. These gaps usually fill rather quickly although there are some that have been around for over a year. I think there are 4 or 5 active gaps that stretch back over 1 year. So that shows that 9 times out of 10 these gaps fill in rather quickly. But not always. If you are going to use the gap strategy the best advice I can give you is set a stop loss just in case. But that really goes for any trade you enter. I hope you are all enjoying your Monday folks. But then again WTFDIK right?
TLDR: We may retest trend support (now resistance) Aurox indicator suggests another leg up but I dont expect a lot from the confined area we are in. If we cant break back into that uptrend we will likely see red candles. There is a small gap above us too between 9080 and 9140. Trade with caution folks. It could get ugly.