Good morning again ladies and gentlemen and welcome back to my look into the exciting world we know as Bitcoin. We have officially entered Mars' orbit and ground control says all systems go! But seriously. 28400? We had a strong weekly candle once again after yesterdays close and things still look pretty good considering. I still have that feeling the bears will hit back. I will discuss my thoughts in this analysis. So lets get to it.
Stimulus is a go. 600 USD per American (many Americans) to the tune of hundreds of billions of dollars. Not to mention they needed even more money for the various nefarious items out politicians desire so much. But I do have good news! As they print the USD into oblivion it will certainly work in Bitcoins favor. I cant rule out the idea that much of this pump has not been so much artificial, but rather fueled by inflation (along with other factors of course) and if they keep pulling USD out of a hat so to speak it will make the price of Bitcoin increase IMO. Does that mean no more dips? No... The bears will still take us down. But inflation of the USD will only strengthen BTC in my opinion.
Okay let me jump down off my soap box and discuss the charts. I threw an ascending support onto the chart. It is obvious that it has been acting as support and resistance over the past few days. I also see when we dipped below the ascending support the 4hr 50 MA was what was holding us up. As long as we remain on top of the ascending trendline I drew I am not convinced the pump is done. If we do lose it I would have my stop loss below that 4hr 50 MA because I have a feeling if we lose the 4hr 50 MA we may lose some serious ground. But these are all hypotheticals at this point. Right now we are still sitting above 7k and above both levels of support so Im optimistic for sure.
One thing I want to bring up is the fact there is quite a large gap below us. From 23750 - 26500. These gaps tend to fill rather quickly upon showing up on Monday but this one has yet to have an effect. The bullish market could just be too much for the bears to mess with or perhaps the stimulus news is slowing the cash outs. I assumed many would cash out to get tax money to cover their dues come tax day 2021. Its just a part of investing. But if people are about to receive 600 per dependent and per each parent they may not need to worry about cashing out their bullish BTC in order to meet tax obligations. Or maybe people just want to wait til the last possible minute to make sure they dont miss any pump? A multitude of possibilities. Time will tell if this bullish market will roll into 2021...
2020 has been one wild and crazy ride where people thought Bitcoin was going to crash and burn after the dump on March 13th of this year. But since then we have 7x + in around 9 months. That is incredible. Is the fun over? Maybe. But even if it were to come crashing down I had a blast watching this surge. The one thing Im confident of is Bitcoin is not done. It will rise even more. Even if we lose 50% today. We will see 6 figure Bitcoin eventually. Its a matter of time in my opinion. The fundamentals of the USD and BTC dictate that BTC should rise in value due to its limited nature. That is what attracted me to Bitcoin in the first place. I hope you all have a great week. I will be watching the charts closely. Please make good smart choices folks. And always remember... WTFDIK??
TLDR: Still bullish but I have a stop loss set for sure. Big gap below us From 23750 - 26500. So be careful and set that stop.
Stimulus is a go. 600 USD per American (many Americans) to the tune of hundreds of billions of dollars. Not to mention they needed even more money for the various nefarious items out politicians desire so much. But I do have good news! As they print the USD into oblivion it will certainly work in Bitcoins favor. I cant rule out the idea that much of this pump has not been so much artificial, but rather fueled by inflation (along with other factors of course) and if they keep pulling USD out of a hat so to speak it will make the price of Bitcoin increase IMO. Does that mean no more dips? No... The bears will still take us down. But inflation of the USD will only strengthen BTC in my opinion.
Okay let me jump down off my soap box and discuss the charts. I threw an ascending support onto the chart. It is obvious that it has been acting as support and resistance over the past few days. I also see when we dipped below the ascending support the 4hr 50 MA was what was holding us up. As long as we remain on top of the ascending trendline I drew I am not convinced the pump is done. If we do lose it I would have my stop loss below that 4hr 50 MA because I have a feeling if we lose the 4hr 50 MA we may lose some serious ground. But these are all hypotheticals at this point. Right now we are still sitting above 7k and above both levels of support so Im optimistic for sure.
One thing I want to bring up is the fact there is quite a large gap below us. From 23750 - 26500. These gaps tend to fill rather quickly upon showing up on Monday but this one has yet to have an effect. The bullish market could just be too much for the bears to mess with or perhaps the stimulus news is slowing the cash outs. I assumed many would cash out to get tax money to cover their dues come tax day 2021. Its just a part of investing. But if people are about to receive 600 per dependent and per each parent they may not need to worry about cashing out their bullish BTC in order to meet tax obligations. Or maybe people just want to wait til the last possible minute to make sure they dont miss any pump? A multitude of possibilities. Time will tell if this bullish market will roll into 2021...
2020 has been one wild and crazy ride where people thought Bitcoin was going to crash and burn after the dump on March 13th of this year. But since then we have 7x + in around 9 months. That is incredible. Is the fun over? Maybe. But even if it were to come crashing down I had a blast watching this surge. The one thing Im confident of is Bitcoin is not done. It will rise even more. Even if we lose 50% today. We will see 6 figure Bitcoin eventually. Its a matter of time in my opinion. The fundamentals of the USD and BTC dictate that BTC should rise in value due to its limited nature. That is what attracted me to Bitcoin in the first place. I hope you all have a great week. I will be watching the charts closely. Please make good smart choices folks. And always remember... WTFDIK??
TLDR: Still bullish but I have a stop loss set for sure. Big gap below us From 23750 - 26500. So be careful and set that stop.