Good morning again ladies and gentlemen and welcome back to my daily analysis of Bitcoin. Today I am looking into the 4hr as it is telling me a lot and I want to share it with you all. The pump yesterday, while welcomed, was short lived and typically gains like that tend not to stick. Regardless of the gains Bitcoin has become a force. Its becoming mainstream. An everyday thing. I heard to sports radio guys complaining about all the recent stock chatter and one of them mentioned how he was sick of hearing about BTC. LOL. This means word is spreading.... Like a fire. Anyways lets take a look at what is going on with the charts today.

I see a doji. This doji is a classic example of how a doji can predict a reversal and how you can make some money trading events like this. Reversal dojis are certainly not an every day occurrence. Not even weekly. Maybe once or twice a month on the 4hr. But when I do take notice I do try to trade the reversal or pivot point. Those dojis do not always work as advertised so risk management is always recommended if you want to play a doji. But I have made some decent profit over the last few years when I notice these dojis.

We spiked above the triangle we were stuck inside of for weeks. This huge right triangle (which I deemed bearish) saw us break up from the abyss. I mean outside of a status change of Twitter to "Bitcoin" there was no rhyme or reason in my opinion for the break out. We were under the 4hr cloud, The 4hr 50 MA, the 4hr 200 MA, and we tested 29k a few times over the last 7 days. Most of this is bearish. Not to mention we had a death cross on the 4hr a few days ago. This goes to show you that TA is fanstastic. It works. But you will always have outside forces that can throw a wrench into the cog wheels of the grandest technical analysis. There is no indicator for these outside interferences so keep your ears open.

After a 6,000 USD 4hr candle we saw the doji I mentioned earlier and then we see a bearish candle right after that. It took away most of the gains we saw but left us a bit higher and a bit more dry than we would have been otherwise. Instead of testing 29k like we were 2 days ago we are sitting just below 34k. But will this just be a delay of the inevitable? I will explain my reasoning.

We dropped after the pump pretty quickly, as those type of quick pumps dont tend to stick around long. When we dropped I was hoping the support (I drew a line representing it at $34,800) would hold allowing us a possible bounce. Traditionally former resistance becomes support so that is why I was thinking this way. It didnt work and we fell below it. And the descending resistance of the triangle. So at the end of the day we ended up right back where we started but in slightly shallower waters so Ill take that.

We remain flirting with the top border of the 4hr cloud which is support along with the 4hr 200 MA (blue line) which is support one second and resistance the next. This is a street fight between the bulls and the bears. I sure hope the bulls come in with a steel chair and knocks the bears out but I would not be in a position right now unless risk management was in place. Set a stop loss. Dont ignore helpful tools like a stop loss. Perhaps we can break up out of this right triangle but from past experience they tend to break down. I hope this triangle proves this wrong. I hope you all have a great weekend folks. Make good choices with your money. And always remember WTFDIK??

TLDR: Bull breakout yesterday was largely a quick pump with profit taking. Nothing we havent seen before. Bears are fighting back but we are close to the top of the triangle (after breaking out from it yesterday and falling back in later in the day) We are above the 4hr 200 MA and the 4hr cloud and the 4hr 50 MA. All bullish. Keep an eye on the charts and set a stop loss.
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