Good morning again ladies and gentlemen and welcome to my daily analysis of Bitcoin. Today I have the 4hr time frame pulled up and I can see we are starting this day off right. The bulls just wont relent and we are knocking on 24k's door once again. Nice work bulls! There are still approximately one more week left in 2020 and I would love to see us end the year with a bang. With numerous outside factors considered Bitcoin is really showing the world that it is a viable investment that can and should be a part of everyones portfolio in my opinion. No more calling Bitcoin "tulips"... That went out the door when Paypal and Grayscale started scooping up Bitcoin by the bucket full. I literally could go on all day and Im tempted to do just that... But I have a chart to analyze. So lets get to it.
I see a trend forming and we are really respecting the borders of the trend in question. That is why they say the trend is your friend. Learning to identify trends like this is essential... If you can identify trends early you can get some decent trades off. I love trading trends and patterns myself. Pretty self explanatory but I will explain with a shortened version. When the candles hit the top of the trend I will USDT. If it hits the bottom buy back into BTC. Am I always a millionaire at the end of all this? Nope. Sometimes its hardly worth the efforts. As an evolving trader I am learning when I should avoid messing with a long. If the reward isnt worth the risk you should absolutely refrain from entering a position. But if you do want to trade a pattern (triangles etc) or a trend like we see on the chart at the moment, identification is key. Then execution is a must. Learning to set a stop and walking that stop up the trend will lead to profit. I know that this strategy works well for me.
I mentioned this yesterday but the support on the 4hr time frame shows plenty of support below us. The part I have my eye on is the 4hr 50 MA (orange line) along with the top border of the 4hr ichimoku cloud. These 2 indicators are combined and that will likely give traders more confidence. That confidence can lead to a new ATH perhaps. We are so close. Bitcoin has been spoiling us this year. Bitcoin consolidates for a few days and people are already ready to give up LOL. I know I am spoiled by Bitcoin.
People ask me why I dont mess with stocks and the main reasoning behind that is Bitcoin is all I really need. Anything else is just another chart I have to learn and that takes time. Im familiar with Bitcoin and the habits it has. Alts are the same for me. I used to mess with them often but for the last year or so I stuck strictly with Bitcoin. I know some alts could have made me rich simply from a buy and hold. But those alts arent easy to find. Bitcoin is not hard to find and the market has plenty of liquidity which is also very important to me. So that is the main reason I stick to trading Bitcoin.
Over the last 1.5 hours we have seen a 1k rise in the price of BTC. Nice pump to wake up to. 1000 dollar swings are pretty common at these levels. I remember back 6 months ago a 1000 dollar swing was a huge deal. The higher we go the more likely a 1000 dollar swing will be par for the course. Think of it this way.. a 10% swing is common in crypto. A 10% swing would see a $2380 move. That is quite a bit. I am really absorbing all the info I can at these levels and all of you should as well. This data is absolutely crucial. Support and resistance is being carved daily. That is the data we need to pay attention to. As a trader nothing has really changed for me at these levels as far as my strategy goes. I still am religious about setting a stop loss. I still walk that stop loss up the chart following the candles. I also stay ready to buy that dip. Setting alerts with certain apps is a good way to know when the price is moving. I have a lot of alerts that help me stay on top of my trading.
4hr bollinger bands are tightening up. That means volatility is on the horizon. I would love to promise you that the break out will result in 25k Bitcoin but I am not clairvoyant. I dont have a crystal ball. I only have logic. And logic tells me that risk management is the name of the game... Or the name of my game. I am adamant about that stop loss. You see if the bottom falls out before I decide to sell that stop loss is all that stands between me and a loss. I like this method. Walking up the stop loss in a safe effective manner allows me to stay in the trade as long as I want and keep gathering profit. Whats not to love about that?
There has been a bit of fud flowing around social media this A.M. about XRP and how the SEC filed suit against the coin. It caused a massive dump. I know we all enjoy poking fun at XRP but the real deal is I dont like seeing anyone lose their hard earned money. I hate when external forces affect the charts negatively. When its good it doesnt bug me. Like hearing Paypal was buying BTC was great external news that wasnt really technical. But that doesnt mean it didnt have an effect on the charts. XRP will be okay in the long run I imagine but for now things could get worse before they get better. Only time will tell. I dont usually talk XRP but I just wanted to bring it up as many of my followers do mess with XRP. I will stick with my Bitcoin for now and let the chips fall where they may. With the new stimulus seemingly in limbo this could equate into volatility. I just have that feeling...
First no stimulus money for US citizens, then it went to 600 USD per person. Now our fearless leader is putting his foot down and saying they need to increase the amount to 2k per person. I have no clue how this is going to end but you better believe Im watching and paying attention. The way this turns out could have big repercussions on the charts. I think if there were no stimulus coming traders may be more apt to remove BTC from their holdings to meet tax liability. But with stimulus money on the horizon it may keep these investors from removing that BTC. Especially if they got 2k per person. At this point its all speculation but that is a lot of what I do. The stimulus could effect BTC in more ways than just taxes like I mentioned. By printing these checks again it will cause another bout of inflation. That is just how it works. They will create money out of thin air and that will in turn dilute the supply we already have. Meaning that 1000 dollars in your bank account is more like 900 after the inflation. This will undoubtedly have an effect on the price of BTC as well. It may go up in terms of USD and we all love seeing that. But that doesnt mean BTC is gaining value. Rather it means the US dollar is losing value. This has a lot to do with this recent pump and could fuel another tear up the charts. Even putting 30k into play. Who would have thought I would even bring 30k up in 2020 LOL. Anyways I hope you all have a great day! Make good choices folks! And always remember... WTFDIK???
TLDR: 23650. Need I say more?
I see a trend forming and we are really respecting the borders of the trend in question. That is why they say the trend is your friend. Learning to identify trends like this is essential... If you can identify trends early you can get some decent trades off. I love trading trends and patterns myself. Pretty self explanatory but I will explain with a shortened version. When the candles hit the top of the trend I will USDT. If it hits the bottom buy back into BTC. Am I always a millionaire at the end of all this? Nope. Sometimes its hardly worth the efforts. As an evolving trader I am learning when I should avoid messing with a long. If the reward isnt worth the risk you should absolutely refrain from entering a position. But if you do want to trade a pattern (triangles etc) or a trend like we see on the chart at the moment, identification is key. Then execution is a must. Learning to set a stop and walking that stop up the trend will lead to profit. I know that this strategy works well for me.
I mentioned this yesterday but the support on the 4hr time frame shows plenty of support below us. The part I have my eye on is the 4hr 50 MA (orange line) along with the top border of the 4hr ichimoku cloud. These 2 indicators are combined and that will likely give traders more confidence. That confidence can lead to a new ATH perhaps. We are so close. Bitcoin has been spoiling us this year. Bitcoin consolidates for a few days and people are already ready to give up LOL. I know I am spoiled by Bitcoin.
People ask me why I dont mess with stocks and the main reasoning behind that is Bitcoin is all I really need. Anything else is just another chart I have to learn and that takes time. Im familiar with Bitcoin and the habits it has. Alts are the same for me. I used to mess with them often but for the last year or so I stuck strictly with Bitcoin. I know some alts could have made me rich simply from a buy and hold. But those alts arent easy to find. Bitcoin is not hard to find and the market has plenty of liquidity which is also very important to me. So that is the main reason I stick to trading Bitcoin.
Over the last 1.5 hours we have seen a 1k rise in the price of BTC. Nice pump to wake up to. 1000 dollar swings are pretty common at these levels. I remember back 6 months ago a 1000 dollar swing was a huge deal. The higher we go the more likely a 1000 dollar swing will be par for the course. Think of it this way.. a 10% swing is common in crypto. A 10% swing would see a $2380 move. That is quite a bit. I am really absorbing all the info I can at these levels and all of you should as well. This data is absolutely crucial. Support and resistance is being carved daily. That is the data we need to pay attention to. As a trader nothing has really changed for me at these levels as far as my strategy goes. I still am religious about setting a stop loss. I still walk that stop loss up the chart following the candles. I also stay ready to buy that dip. Setting alerts with certain apps is a good way to know when the price is moving. I have a lot of alerts that help me stay on top of my trading.
4hr bollinger bands are tightening up. That means volatility is on the horizon. I would love to promise you that the break out will result in 25k Bitcoin but I am not clairvoyant. I dont have a crystal ball. I only have logic. And logic tells me that risk management is the name of the game... Or the name of my game. I am adamant about that stop loss. You see if the bottom falls out before I decide to sell that stop loss is all that stands between me and a loss. I like this method. Walking up the stop loss in a safe effective manner allows me to stay in the trade as long as I want and keep gathering profit. Whats not to love about that?
There has been a bit of fud flowing around social media this A.M. about XRP and how the SEC filed suit against the coin. It caused a massive dump. I know we all enjoy poking fun at XRP but the real deal is I dont like seeing anyone lose their hard earned money. I hate when external forces affect the charts negatively. When its good it doesnt bug me. Like hearing Paypal was buying BTC was great external news that wasnt really technical. But that doesnt mean it didnt have an effect on the charts. XRP will be okay in the long run I imagine but for now things could get worse before they get better. Only time will tell. I dont usually talk XRP but I just wanted to bring it up as many of my followers do mess with XRP. I will stick with my Bitcoin for now and let the chips fall where they may. With the new stimulus seemingly in limbo this could equate into volatility. I just have that feeling...
First no stimulus money for US citizens, then it went to 600 USD per person. Now our fearless leader is putting his foot down and saying they need to increase the amount to 2k per person. I have no clue how this is going to end but you better believe Im watching and paying attention. The way this turns out could have big repercussions on the charts. I think if there were no stimulus coming traders may be more apt to remove BTC from their holdings to meet tax liability. But with stimulus money on the horizon it may keep these investors from removing that BTC. Especially if they got 2k per person. At this point its all speculation but that is a lot of what I do. The stimulus could effect BTC in more ways than just taxes like I mentioned. By printing these checks again it will cause another bout of inflation. That is just how it works. They will create money out of thin air and that will in turn dilute the supply we already have. Meaning that 1000 dollars in your bank account is more like 900 after the inflation. This will undoubtedly have an effect on the price of BTC as well. It may go up in terms of USD and we all love seeing that. But that doesnt mean BTC is gaining value. Rather it means the US dollar is losing value. This has a lot to do with this recent pump and could fuel another tear up the charts. Even putting 30k into play. Who would have thought I would even bring 30k up in 2020 LOL. Anyways I hope you all have a great day! Make good choices folks! And always remember... WTFDIK???
TLDR: 23650. Need I say more?