Good morning again ladies and gentlemen and welcome back to my daily analysis of Bitcoin. Today I am looking at the 4 hr time frame pulled up again after a decent bounce. We are in much better shape than yesterday and things look prime for another possible higher high. Anyways lets take a look at the charts this a.m. and see what we can see.
The bulls woke up early today apparently and they decided the 4hr 200 MA was the time for a pivot and climb above support. The very same support that was resistance yesterday. The 4hr 50 MA is below us now along with the 4hr cloud. All bullish occurrences. But the real test is on at the moment. We poked out of the top of the triangle on the chart but we really need that confirmation candle to close to ensure the break is legit. And the current 4hr candle has 30 mins left its life so lets see if it can remain above the cloud and the triangle.
One can clearly see that the 4hr 200 MA is strong support as the last 2 times we approached the indicator you had a real shot at entering a profitable long position. This is something you should take notice of in case we end up in a situation where we test other indicators such as the daily 50 MA and the daily 200 MA. With the reliability of the 4hr 200 MA very evident I imagine the daily will be even stronger. The daily time frame is the most important of all time frames imo.
So now that we broke above the triangle (and the cloud to boot) We have clear skies above us. That is if we can manage to stay above support and 50k. I see a bearish gap on Monday due to the recent rise But that will be more clear to me in the morning. Things are looking really good to start the week.
With the stimulus bill passing through the govt passing we can expect some of that money to enter the crypto market. I am not saying we should expect a trillion dollars in new volume but I will say I do expect some people to throw their money into the market. We see directly after approval of the stimulus the market responds positively. One reason could be due to the influx of new volume or the fact that inflation will almost surely cause the price of BTC to rise while the USD loses value.
I really hope we can hold onto this bullish break this morning and as people decide to exit their slumber and look at the charts they may fomo into the market seeing this break. But this is pure speculation at this point. What we do know is we broke above the 4hr 50 MA, the 4hr cloud, and the triangle pattern we were stuck in for weeks. All bullish! So lets make this week a good one! Make good choices yall! And always remember... WTFDIK???
TLDR: Sunny skies, no clouds. Bears sleeping in. Life is good
The bulls woke up early today apparently and they decided the 4hr 200 MA was the time for a pivot and climb above support. The very same support that was resistance yesterday. The 4hr 50 MA is below us now along with the 4hr cloud. All bullish occurrences. But the real test is on at the moment. We poked out of the top of the triangle on the chart but we really need that confirmation candle to close to ensure the break is legit. And the current 4hr candle has 30 mins left its life so lets see if it can remain above the cloud and the triangle.
One can clearly see that the 4hr 200 MA is strong support as the last 2 times we approached the indicator you had a real shot at entering a profitable long position. This is something you should take notice of in case we end up in a situation where we test other indicators such as the daily 50 MA and the daily 200 MA. With the reliability of the 4hr 200 MA very evident I imagine the daily will be even stronger. The daily time frame is the most important of all time frames imo.
So now that we broke above the triangle (and the cloud to boot) We have clear skies above us. That is if we can manage to stay above support and 50k. I see a bearish gap on Monday due to the recent rise But that will be more clear to me in the morning. Things are looking really good to start the week.
With the stimulus bill passing through the govt passing we can expect some of that money to enter the crypto market. I am not saying we should expect a trillion dollars in new volume but I will say I do expect some people to throw their money into the market. We see directly after approval of the stimulus the market responds positively. One reason could be due to the influx of new volume or the fact that inflation will almost surely cause the price of BTC to rise while the USD loses value.
I really hope we can hold onto this bullish break this morning and as people decide to exit their slumber and look at the charts they may fomo into the market seeing this break. But this is pure speculation at this point. What we do know is we broke above the 4hr 50 MA, the 4hr cloud, and the triangle pattern we were stuck in for weeks. All bullish! So lets make this week a good one! Make good choices yall! And always remember... WTFDIK???
TLDR: Sunny skies, no clouds. Bears sleeping in. Life is good