Bitcoin 4hr analysis 12-12-2020
Good morning again ladies and gentlemen and welcome back to my daily look into the world of Bitcoin. Today I have the 4hr time frame pulled up after rebounding a bit yesterday. I saw a few reasons for that and one was quite interesting. More on that in a few. The bulls have drawn the line at 17600 and told the bears that is as far as they can go. We have started marching back and made it above 18k but the gains could be in jeopardy thanks to the abundant resistance that is still above us. Anyways lets take a look at the charts. ( i got a new laptop so its not as easy to type like I did on my old one and until I get used to it I may have a few errors. I apologize in advance for these)
Okay I saw something on the charts yesterday that was pretty cool. Its not really surprising after the fact but when it happened I didnt really expect it. So that spark airdrop occurred yesterday for XRP holders. I moved all my money I had on Coinbase into XRP to take advantage of the drop. I know I may get ridiculed for it but whatever, I did it and sold right back into BTC after the snap shot. No surprise as I guess I wasnt the only one with that plan. XRP dropped 11% immediately after the drop. And Bitcoin went from 18k to 18400 approximately in a matter of minutes. I love seeing the markets work like that right before my eyes. The movement of XRP to Bitcoin caused is the main reason for that pump. It was too much of a coincidence to blame it on anything else. I know I wasnt the only one to jump the XRP ship and sell into BTC right after the snap shot. I rarely see a movement that can be explained with confidence like this one. People shorted XRP and that wasnt a bad move either. But longing BTC is another move people could have made thanks to the mass exodus from XRP to BTC.
Okay enough about XRP. I just thought it was cool and would share. I also see a lot going on with the BTC/USDT chart. Lets just start with resistance. Support and resistance is the most important info a trader can use on the chart. Being able to identify support and resistance is key to learning to trade well and resistance is abundant at the moment. We have the 4hr cloud above us (bottom border is around 18900) and just below that we have the 4hr 50 MA at exactly 18664. We also must not forget the hidden resistance that isnt marked with an indicator. But its clearly support/resistance. I drew a horizontal line around 18464. We are knocking on that resistance door and if we can break it the bulls arent out of the woods by any means. But its a start.
With all that resistance its easy to see people getting discouraged and sentiment changing. Crypto traders and investors are so spoiled. LOL. We expect everything right away. Believe me Im just as bad as any of you. Anyways support is next. We do have some support below us. And its pretty promising. The uptrend we have been in for months is supporting us and could likely keep us from losing ground. Especially since the 4hr 200 MA is merged with it. When support is merged together it makes stronger support and traders tend to be more confident in going long in a double support situation. I know that I am more confident when I see support overlap.
December the 17th will be the final day we can remain in this pattern. We may break out before that but for now I can map out the top border and bottom border and see that a move is likely on or before December 17th. I really wont sit here and speculate which way the market is gonna jump. I will say the bulls have a real shot at breaking 20k before 2021 if they play their cards right. It wont be easy. But Bitcoin certainly has taught me to expect the unexpected. I will say I took profit this year and that is why Im typing on a new laptop. I love me some Bitcoin. As the year ends people may or may not start seizing profit to pay taxes and xmas credit card bills etc. Its just a fact of life folks. I cant promise BTC is going to drop to 3k but it may drop and we should all be prepared for the worst while we hope for the best. Exercise risk management. Make good choices! WTFDIK right?
TLDR: I am going to do a giveaway this coming week in the group Crypto Coin Trader on Facebook. I ordered a .999 silver Bitcoin and also have 100 dollars worth of Bitcoin to sweeten the pot. If you want to participate stay tuned. As soon as I get the coin in my hand I will post the contest. Have a great weekend yall!
Okay I saw something on the charts yesterday that was pretty cool. Its not really surprising after the fact but when it happened I didnt really expect it. So that spark airdrop occurred yesterday for XRP holders. I moved all my money I had on Coinbase into XRP to take advantage of the drop. I know I may get ridiculed for it but whatever, I did it and sold right back into BTC after the snap shot. No surprise as I guess I wasnt the only one with that plan. XRP dropped 11% immediately after the drop. And Bitcoin went from 18k to 18400 approximately in a matter of minutes. I love seeing the markets work like that right before my eyes. The movement of XRP to Bitcoin caused is the main reason for that pump. It was too much of a coincidence to blame it on anything else. I know I wasnt the only one to jump the XRP ship and sell into BTC right after the snap shot. I rarely see a movement that can be explained with confidence like this one. People shorted XRP and that wasnt a bad move either. But longing BTC is another move people could have made thanks to the mass exodus from XRP to BTC.
Okay enough about XRP. I just thought it was cool and would share. I also see a lot going on with the BTC/USDT chart. Lets just start with resistance. Support and resistance is the most important info a trader can use on the chart. Being able to identify support and resistance is key to learning to trade well and resistance is abundant at the moment. We have the 4hr cloud above us (bottom border is around 18900) and just below that we have the 4hr 50 MA at exactly 18664. We also must not forget the hidden resistance that isnt marked with an indicator. But its clearly support/resistance. I drew a horizontal line around 18464. We are knocking on that resistance door and if we can break it the bulls arent out of the woods by any means. But its a start.
With all that resistance its easy to see people getting discouraged and sentiment changing. Crypto traders and investors are so spoiled. LOL. We expect everything right away. Believe me Im just as bad as any of you. Anyways support is next. We do have some support below us. And its pretty promising. The uptrend we have been in for months is supporting us and could likely keep us from losing ground. Especially since the 4hr 200 MA is merged with it. When support is merged together it makes stronger support and traders tend to be more confident in going long in a double support situation. I know that I am more confident when I see support overlap.
December the 17th will be the final day we can remain in this pattern. We may break out before that but for now I can map out the top border and bottom border and see that a move is likely on or before December 17th. I really wont sit here and speculate which way the market is gonna jump. I will say the bulls have a real shot at breaking 20k before 2021 if they play their cards right. It wont be easy. But Bitcoin certainly has taught me to expect the unexpected. I will say I took profit this year and that is why Im typing on a new laptop. I love me some Bitcoin. As the year ends people may or may not start seizing profit to pay taxes and xmas credit card bills etc. Its just a fact of life folks. I cant promise BTC is going to drop to 3k but it may drop and we should all be prepared for the worst while we hope for the best. Exercise risk management. Make good choices! WTFDIK right?
TLDR: I am going to do a giveaway this coming week in the group Crypto Coin Trader on Facebook. I ordered a .999 silver Bitcoin and also have 100 dollars worth of Bitcoin to sweeten the pot. If you want to participate stay tuned. As soon as I get the coin in my hand I will post the contest. Have a great weekend yall!
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