Bitcoin 4hr analysis 12-24-2020Good morning again ladies and gentlemen and welcome back to my daily look into the exciting world of Bitcoin. Today I have the 4hr time frame pulled up and I see consolidation has taken hold. The bulls have taken us to new heights this year and I for one am quite impressed. But nothing goes up forever and a retrace should be on all of our minds. Even if it doesnt happen and we keep going up, being prepared is never a bad thing. Stop losses are a good way to do just that. We have 1 more week in 2020 and we are holding onto 20k with all our strength. But will it last through 2021? Lets take a look at the charts this morning.
We have been cruising right along in the 23300 since I analyzed the chart yesterday. Bitcoin is soaring high and the gains have already stuck better than those of 2017. Meaning we have spent around a week above 20k vs back in 2017 where we spent a few hours at ATH levels. But this time it seems different with the lead up to this bull run. 2017 had no halving. 2017 had almost 0 institutional interest in Bitcoin. 2017 had no 2.5 year trend break to kick start the bull run. 2017 was different. BTC dominance was lower in 2017 as alts were hot back then. Now more attention is directed at Bitcoin. The differences between 2017 and 2020 are apparent, no doubt about that. But will it equate to gains that stick?
The 4hr 50 MA has been a friend for most of the bull run. Barring a few times where we dipped below the indicator (orange line on the chart) we have spent the majority of the run above the support bouncing off of it numerous times. In runs like this I look for indicators that have reliable data like this. I can make trades off the bounces. Its not rocket science. Just common sense. Being able to identify trends and patterns early will equate to more profit. We are really testing that 4hr 50 MA at the moment so make sure you have a stop loss set.
With all that is going on in the world many external factors have become an issue with the recent movement of Bitcoin. The stimulus that is still in the works will likely effect the price of Bitcoin along with the pandemic etc. Its just a crazy time politically and economically. Nothing any of us can really do except ride it out I suppose. Just look at it like this. The stimulus will likely result in massive money creation. This should make BTC rise in terms of US dollars. Bitcoin's own volatility could certainly outpace the effect of inflation but something has to give. When you print trillions of US dollars in such a short time inflation hits. So technically BTC is not going up in value. But rather the US dollar is losing value. Im sticking with my plan. Stop loss set and if we go up I will move that stop loss up. If we drop Im out. Reentry later.
Speculation is fun but ultimately it may not be as helpful as we hope. Bitcoin is going to go up and down. Nothing we can do about that. What we can do is make money off the dips and rises. That is what we are here for anyways right?? Even if you hold long term you are basically a trader too. You just take 1 - 5 years to close trades lol. Nothing wrong with long term investments. I do both trading and long term. I really like taking advantage of BTC when it drops to sub 5k. I like to put any BTC I buy at those levels into my cold storage and let it sit. It makes me feel good knowing I bought at those levels and am up quite a bit. There was a bit of fud with a certain alt that has been hogging attention as of late. I hope the bad news does blow over soon. Not because I am a huge alt coin fan but because its crypto. Even XRP. When outsiders see issues like this it may or may not shed a bad light on BTC. I hope this SEC stuff blows over soon. For everyones sake. We are all in this together. Like football teams so to speak. We may poke fun at the other teams but at the end of the day we all play the same game and should have a certain amount of respect for one another. I hope you all have a great day. Lets crush 25k before New years folks! LOL. Please make good choices! And never forget. WTFDIK???
TLDR: Consolidation. -------> plenty of support below us. Things look good for now. If we can stay above the 4hr 50 MA I think that will be bullish. If not we will see what happens
