Bitcoin 4hr analysis 1-2-2021Good morning ladies and gentlemen and welcome back to the world of Bitcoin. The bulls have made themselves at home it seems and they are still taking us to new highs well into 2021. There are a few reasons for this and we will discuss in this analysis. People are calling this a huge bubble and perhaps the bottom will fall out soon. But in the mean time we can enjoy 30k BTC. Even if we did lose 10k we would still be above 20k and that is incredible. I assumed we may break 20k in 2020 but not with this much fomo. Anyways lets take a look at the charts.
We are literally in outer space with any significant time frame. Why is this important? Because we are far above the indicators I use daily which is bullish (being above the indicators I use is considered bullish) But this also means the indicators in question arent very helpful as they are thousands of dollars below the candles (with the exception of the 4hr 50 MA) I have been watching the 4hr 50 MA closely. We have fallen below the indicator a few times during this bull run ultimately recovering to above the 4hr 50 MA. We are currently above the 4hr 50 MA (orange line) and until that changes I am still bullish (*short term)
Every morning I wake up Bitcoin seems to be up another 1k. I am certainly not complaining but I can say wow. I didnt expect us to break 30k like this. But there was a perfect storm in 2020. A dip to 3800 in March, the Halving in May, we broke a 2.5 year descending resistance in June or July, Stimulus money stimulated the markets, Inflation occurred when we increased the supply of USD by 22% (most ever in one single year) Institutional buying is also a new development. This wasnt happening back in the 2017 run. 2021 is full of changes (political mainly) But Bitcoin is holding strong so far. Monday is what I have my mind on. That is when we all seemingly get back to the mix of a 9-5 and that normal work life. Why do I bring this up? Well traders will also be getting back to their trading desks. They may decide to take profit. But this stimulus they just started sending out may slow the sell off.
People dont want to exit their position. Who can blame em? Bitcoin goes up another 1000 bucks it seems every time I close my eyes. The stimulus may substitute the sell off and people may use that stimulus money to pay their taxes instead of exiting a bull market for tax purposes. I see some possible support below us in the event of a retrace. 28400 seems to hold some promise of a possible support if we drop that far. Below that its pretty obvious that 24330 is a likely area for support to show its face.
I wish I could identify trends and patterns for you. It makes my analysis fun when I can identify trends and what not. Its not easy to analyze a rocket ship. We are going straight up. Im not upset by this. Not at all. But it sure makes analyzing this parabolic run much more difficult. We may or may not be done with this pump. Along the way from 10k back in July we have created multiple gaps on the CME. Some are over 2000 dollar gaps. These gaps have yet to fill and even though gaps arent guaranteed to fill anytime soon I still have them in the back of my head. Speaking of CME gaps I heard they are adding ETH to CME which not means ETH will also have these same gaps that show up after the weekends with BTC.
30800 is the new ATH. That could be temporary. I hear a lot of other traders saying 35k is within reach. I cant say that is a certainty but I can say that if you want to long this use some common sense my friends. Set a stop loss. I have been walking my stop loss up for weeks and if it does dump my SL will trip. Profit locked in. Easy peasy. I dont care if I miss the top. I bought some of this Bitcoin around 4k back in March so I am sitting pretty right now. Much of you should be in the same boat. I mentioned gaps earlier and this weekend will also have a decent gap. WE have already rocketed up since Fridays close so I am assuming there will be a gap on Monday. If we fill that gap quickly Monday a.m. we may see some knee jerk sell offs. Only time will tell though. We are starting 2021 off on the right foot but Monday is the real test. Lets see if the bulls can pull off another miracle. I hope you all have an amazing weekend. Make good choices my friends. Please remember WTFDIK???
TLDR: 30800 new ATH.Excuse me (NEW ATH is 31250 LOL) it just wont stop! Everytime I close my eyes I wake up with a new ATH. I guess Ill try and take more naps and maybe we hit 40k before the end of the day tomorrow?
