Good morning again ladies and gentlemen and welcome back to my daily analysis of Bitcoin. Today I have the 4hr time frame pulled up after losing a bit of ground over night. No sweat though. We are still sitting at 39k currently and that is something to be proud of. Its well into the new year and we are still clinging to the gains we have seen over the past few weeks. But is a dip around the corner? Lets take a look at the chart.
This morning I see we dropped to around 38500 before recovering to just below 40k where we are currently sitting. That shows the bears arent strong enough quite yet to take us down. Of course the constant pressure applied by the bears will eventually take its toll Im afraid, I still think its okay to be long as long as you set a stop loss. This is shaky ground and anything can happen. Prepare for the worst. Im not clairvoyant therefore I cant tell you for sure the direction we are heading next. What I can suggest is to employ risk management and even if you are wrong you wont pay for it too much.
I see the bollinger bands on the 4hr time frame have had a chance to tighten up. This could point to increased volatility on the horizon. We lost the support of the trend I mentioned yesterday. I left the trend on the chart so you could see that we did in fact break out of the trend. Now that the trend is no more we are back to square one. I will be paying attention to the chart over the next day or 2 for sure to see if I can identify another trend early enough to trade for decent profit. Identifying trends early is a key to trading the trend.
As we lose a little ground this weekend I am reminded of the gap from last weekend. We climbed 3k+ over the weekend and when Monday rolled around bam. Less than 12 hours into the day and we dropped to fill that gap. If you were trading that you could have paid off a car if you made the right trades. Something to think about. I bring this up due to this being the weekend. We may have a gap just like last weekend. But this one should be above us unless the bulls take off today. When you drop over the weekend you create a bullish gap. When the price climbs over the weekend its the opposite. So Im interested to see how the weekly close looks in less than 12 hours from now.
Just remember that not all gaps are created equal. Just because a gap is on the chart doesnt necessarily mean we fill it like we did last week. I like to trade gaps but I have been burnt. Though its very rare. I am pretty successful playing gaps for the most part because they are predictable to a degree and traders need to take advantage of any edge they have in this market. 39800 is sort of the line in the sand at the moment. I see some support at this level but it seems fleeting. If we do lose it we can expect a drop to at least 37700 and that is being conservative. The weekend is typically boring in terms of price movement (except the past 3 weekends). This weekend is more of what Im used to. Consolidation. I do like that there could be a gap above us Monday. That could start the week of on a bullish note. Only time wil tell for sure. I hope you all have a great day folks. Make good choices! And always remember WTFDIK???
TLDR: Clinging to 40k. I see support around 37700 if we lose current support. A gap will likely form above the candles if the weekend proceeds as it is now. (bullish gap) If you plan to trade the gap set a stop loss. Nothing is certain except uncertainty.
This morning I see we dropped to around 38500 before recovering to just below 40k where we are currently sitting. That shows the bears arent strong enough quite yet to take us down. Of course the constant pressure applied by the bears will eventually take its toll Im afraid, I still think its okay to be long as long as you set a stop loss. This is shaky ground and anything can happen. Prepare for the worst. Im not clairvoyant therefore I cant tell you for sure the direction we are heading next. What I can suggest is to employ risk management and even if you are wrong you wont pay for it too much.
I see the bollinger bands on the 4hr time frame have had a chance to tighten up. This could point to increased volatility on the horizon. We lost the support of the trend I mentioned yesterday. I left the trend on the chart so you could see that we did in fact break out of the trend. Now that the trend is no more we are back to square one. I will be paying attention to the chart over the next day or 2 for sure to see if I can identify another trend early enough to trade for decent profit. Identifying trends early is a key to trading the trend.
As we lose a little ground this weekend I am reminded of the gap from last weekend. We climbed 3k+ over the weekend and when Monday rolled around bam. Less than 12 hours into the day and we dropped to fill that gap. If you were trading that you could have paid off a car if you made the right trades. Something to think about. I bring this up due to this being the weekend. We may have a gap just like last weekend. But this one should be above us unless the bulls take off today. When you drop over the weekend you create a bullish gap. When the price climbs over the weekend its the opposite. So Im interested to see how the weekly close looks in less than 12 hours from now.
Just remember that not all gaps are created equal. Just because a gap is on the chart doesnt necessarily mean we fill it like we did last week. I like to trade gaps but I have been burnt. Though its very rare. I am pretty successful playing gaps for the most part because they are predictable to a degree and traders need to take advantage of any edge they have in this market. 39800 is sort of the line in the sand at the moment. I see some support at this level but it seems fleeting. If we do lose it we can expect a drop to at least 37700 and that is being conservative. The weekend is typically boring in terms of price movement (except the past 3 weekends). This weekend is more of what Im used to. Consolidation. I do like that there could be a gap above us Monday. That could start the week of on a bullish note. Only time wil tell for sure. I hope you all have a great day folks. Make good choices! And always remember WTFDIK???
TLDR: Clinging to 40k. I see support around 37700 if we lose current support. A gap will likely form above the candles if the weekend proceeds as it is now. (bullish gap) If you plan to trade the gap set a stop loss. Nothing is certain except uncertainty.