Bitcoin 4hr analysis 2-7-2021

BINANCE:BTCUSDT   Bitcoin / TetherUS
Good morning again ladies and gentlemen and welcome back to my daily look into the charts of Bitcoin. Today I have the 4hr time frame pulled up after a nice little run to start the weekend off. We have cooled off a bit since the $40850 high we saw yesterday but there is still reason to be bullish. I will explain... So pull up a seat and lets get this party started.

I see we nearly hit 41k yesterday. Very close to the ATH we hit last month. Ive been saying it for days but 42k is obviously the line in the sand at this point. We had trouble crossing 41k yesterday which shows that breaking the line at 42k may be easier said than done. I think if we can make it to 42k out chances will definitely increase with a possible injection of fomo. Fomo is such a wild card as it can make a simple green candle into a massive pump. The crypto market is notorious for pump chasers.

I was looking for a possible gap on the chart or at least evidence that a gap may or may not be on the charts Monday and for now it does not look like there will be much of a gap. Of course there is sill 9-10 hours before the daily and weekly close. So only time will tell for sure. I like to trade gaps on Monday mornings if they are worth trading that is. Sometimes the gaps are just too minor or non existent to worry about. But when they are on the chart I try to take advantage. Although it is always recommended to exercise risk management and set a stop loss.

So we broke the resistance that was evident at around 38500ish yesterday and peaked around $40,850 now we are retesting the $38,500 resistance we broke yesterday which is now support. But we are really testing it hard so if it fails we may drop a bit. I see support around $34,500ish but it doesnt look like the strongest of supports Ive ever seen. Lets hope that $38,500 holds and we can advance to 42k. If we can break that resistance we have a real shot at 45k or maybe even 50k depending on how hot the fomo can get.

This week we pretty crazy. We had the Elon pump. A huge 4hr candle that was over 5k was the result. But the gains did not stick. Thats to be expected from a fabricated pump such as this one. There was no real rhyme or reason for the pump. But if you did catch the wave congratulations. Alt coins deserve a little mention as they have been really performing great. It sort of reminds me of 2018. Right after the BTC pump to 20k profits left BTC and flowed into many alts. Of course I want to say alts were hotter in 2017 than they are today. Although I may just have my head too far up BTC's %$$ to pay anything else too much attention. I will say that this alt season seems more streamlined. Not every alt is pumping. In 2017 you could throw a dart at a computer screen and pick a winner. Either way the crypto market as a whole seems to be impervious to the FUD of India possibly banning BTC and other crypto and also Nigeria. Both are huge hubs for crypto use.

Lets start this week off right. Even if we dip a bit before the weekly close tonight we should have gap above us as a result and that could help me start the week off right with a profitable trade. Like I said before set a stop loss if you want to play that game. We made the higher high traders want to see yesterday but the momentum must continue or it will all be for nothing. Sundays are notorious for low volume but maybe it will be a repeat of yesterday? We will have to wait and see. Have a great Sunday and enjoy the Super Bowl if you are into that kind of thing. Make good choices my friends and always remember WTFDIK????

TLDR: 38,500 is support/resistance. If we can hold the line above 38500 we have a real shot at a bounce to another possible higher high. But it doesnt look promising as we are currently below the support which makes it resistance. But I would wait for the candle to close.

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