Good morning ladies and gentlemen and welcome back to my daily look into the world of BItcoin. Today I have the daily time frame pulled up believe it or not and I can see we are still clinging to 30k. The bulls have dug in and the bears are plotting their next move. We may have a better idea of what comes next towards the end of January. I will explain why I feel that way. So lets get this party started...
I see a possible right triangle forming on the chart. Ive already pointed that out in previous analysis but the longer we remain above 30k the longer we remain inside of the right triangle. I have seen quite a few right triangles and they are typically bearish from previous experience. I think its time to start thinking above a revisit of the 20k levels...
It definitely would not surprise me to see us test 28500 or 24k has some promise as support. I see there was resistance at these levels on the way up the chart so Im banking on these levels to provide at least some support.. Only time will tell for sure. 20k would be another support as well. There is tons of support below us and I dont even want to scare you guys by even mentioning lower numbers than 20k. But anyone that has been in BTC for over 2 years should be used to pumps and dips by now.
A good risk management strategy is key no matter what type of market we are in... A stop loss locks in profit and allows you to remain in the trade for the time being. Especially if you believe the pump is still going you want to simply chase the candles with that stop loss. When my stop trips I am out and look for a good reentry point. Ive said it many times but I consider trading a lot like a baseball player at the plate. You may hit a home run or strike out. If you hit a home run enjoy it. Take profit and take the knowledge gained and use that on the next trade. If you fail and your stop loss trips its no big deal. Treat it like strike out and go back to the dug out til you see another possibility of a profitable trade. You will hit a home run if you stick to the plan.
Right now Im seeing consolidation and that could mean a very small gap tomorrow or no gap at all. So that would make the weeks first trade a bit more difficult. I like to catch those gaps and trade them. They are pretty reliable and in this world you need to take every edge in the market you can get. If trading was easy everyone would be doing it. So persistence and patience is key. Leave emotions out of your trades. I spoke to a woman that bought at 40k. Panicked and sold at 30k thinking we were dropping to 0. Then she rebought at like 35k. That is exactly what you dont want to do. That is the result of trading with emotions.
If you are new paper trader (fake trades til you gain confidence) and that should keep you from losing all your investment before you are ready to trade. Believe me its not easy. Im still learning every day. Practice makes perfect though so if you are serious about learning to trade I have a course and there is plenty of free stuff on the net. Just make sure you learn before you attempt to earn. Otherwise you may get burned.. Hey that rhymes! I hope you all have a great Sunday. Make good choices my friends and always remember... WTFDIK??
TLDR: We are clinging to 30k. If we do fall out of the triangle we have a real chance of testing 28500 or even 24k. Luckily we still have a lot of support so that is promising. But beware of the bears...
I see a possible right triangle forming on the chart. Ive already pointed that out in previous analysis but the longer we remain above 30k the longer we remain inside of the right triangle. I have seen quite a few right triangles and they are typically bearish from previous experience. I think its time to start thinking above a revisit of the 20k levels...
It definitely would not surprise me to see us test 28500 or 24k has some promise as support. I see there was resistance at these levels on the way up the chart so Im banking on these levels to provide at least some support.. Only time will tell for sure. 20k would be another support as well. There is tons of support below us and I dont even want to scare you guys by even mentioning lower numbers than 20k. But anyone that has been in BTC for over 2 years should be used to pumps and dips by now.
A good risk management strategy is key no matter what type of market we are in... A stop loss locks in profit and allows you to remain in the trade for the time being. Especially if you believe the pump is still going you want to simply chase the candles with that stop loss. When my stop trips I am out and look for a good reentry point. Ive said it many times but I consider trading a lot like a baseball player at the plate. You may hit a home run or strike out. If you hit a home run enjoy it. Take profit and take the knowledge gained and use that on the next trade. If you fail and your stop loss trips its no big deal. Treat it like strike out and go back to the dug out til you see another possibility of a profitable trade. You will hit a home run if you stick to the plan.
Right now Im seeing consolidation and that could mean a very small gap tomorrow or no gap at all. So that would make the weeks first trade a bit more difficult. I like to catch those gaps and trade them. They are pretty reliable and in this world you need to take every edge in the market you can get. If trading was easy everyone would be doing it. So persistence and patience is key. Leave emotions out of your trades. I spoke to a woman that bought at 40k. Panicked and sold at 30k thinking we were dropping to 0. Then she rebought at like 35k. That is exactly what you dont want to do. That is the result of trading with emotions.
If you are new paper trader (fake trades til you gain confidence) and that should keep you from losing all your investment before you are ready to trade. Believe me its not easy. Im still learning every day. Practice makes perfect though so if you are serious about learning to trade I have a course and there is plenty of free stuff on the net. Just make sure you learn before you attempt to earn. Otherwise you may get burned.. Hey that rhymes! I hope you all have a great Sunday. Make good choices my friends and always remember... WTFDIK??
TLDR: We are clinging to 30k. If we do fall out of the triangle we have a real chance of testing 28500 or even 24k. Luckily we still have a lot of support so that is promising. But beware of the bears...