Bitcoin 4hr chart 2/20/2020
Good morning again everyone. Today I am still looking at the 4hr time frame. Yes I know that has been the time frame I have looked at the last few shares, but there is certainly a reason for it. The 4hr is currently working well with the setup I use on the chart. The 50 and 200 MA's have both come into play recently not to mention the cloud. I recommend looking at multiple time frames when you trade and I still recommend that strongly.
Looking at what we can see from this chart the uptrend was broken. No big deal. We have been in limbo ever since we slammed into 10500 and got rejected back to 9500 only to climb back to 10300 approximately. All within a matter of a few days. That is the volatility they tell you about. Traders can make a killing off of swings like that if they can position themselves to take advantage. Easier said than done I know.
So we sank yesterday... Pretty hard. Lucky for the bulls the 4hr 200 MA seemingly saved the day stopping the bleed around 9500. So now the 4hr 200 MA can be considered support. When we fell we fell hard and fast. We broke through the support of the 50 MA and the cloud in one candle. Why am I bringing this point up? Because I want you all to see how fast things can turn around in crypto. One minute you are back above 10200 thinking the moon is within reach and the next you are back below the clouds hoping you dont get rained on.
There is still plenty to be optimistic about though. We are in the beginning of a golden cross on the daily time frame. It has not really accounted for any explosive rises yet but I would not ignore it. The last death cross we saw on the daily had a similar slow bleed. Perhaps this golden cross will be a slow gain??? Only time will tell. As long as we remain above the 50 and 200 MA on the daily there is a ray of hope for the bulls.
That giant gap we created this weekend was seemingly filled according to the CME charts. I have been watching the gaps for a while now and while not all fill immediately this one pretty much did fill almost right away. There are some older gaps that never got filled... One at 11800 and one in the mid 3k range. Im not telling you this to scare you. Im telling you this so you can understand that not every gap is created equal from the looks of it. I still have plenty to learn when it comes to CME and the gaps but I am picking up on it slowly but surely. (There is also a gap around 8500 although its pretty small. None the less it is still there and a relatively young gap. Possibly 2-3 weeks old. We may just fill this)
Yes we fell below some key support on the 4hr. Am I worried? Absolutely not. Halving is coming in a few months. Golden cross is alive and well on the daily chart. There is plenty to be bullish about. I would love to see us break up out of the weekly cloud. We have been fighting with the weekly clouds top border for a few weeks now and we just cannot seem to conquer the resistance. I know we all wanted to see Bitcoin go straight to the moon but that is just not how markets work. Besides a slower growth always seems to be a bit more sustainable. When we do shoot straight to the moon like we did at the end of last year when we shot from 7.5k to 10k in a day or 2, these gains dont tend to stick around. At least from my experience I can say that these explosive growth scenarios are over almost as fast as they begin. We lost all the gains of that pump I just mentioned and we even sank further than the original starting point of said pump.
My point is not all pumps are created equal either. A slower growth is just more sustainable in my opinion. Gains like this tend to stick around a bit longer. That doesnt mean the bears wont give us a gut punch. After all this is Bitcoin and we know that the rules do not always apply to the honey badger. This is why they make stop losses after all. I will be watching the 4hr chart closely today. Im eager to see if the 4hr 200 MA will hold. Historically the 200 MA on most time frames is a strong support/resistance that traders can typically depend on. Bots also love MA's from what I gather. Anyways trade with caution folks. The uptrend has broken and consolidation is seemingly on the menu. I hope you are hungry... But WTFDIK???
Looking at what we can see from this chart the uptrend was broken. No big deal. We have been in limbo ever since we slammed into 10500 and got rejected back to 9500 only to climb back to 10300 approximately. All within a matter of a few days. That is the volatility they tell you about. Traders can make a killing off of swings like that if they can position themselves to take advantage. Easier said than done I know.
So we sank yesterday... Pretty hard. Lucky for the bulls the 4hr 200 MA seemingly saved the day stopping the bleed around 9500. So now the 4hr 200 MA can be considered support. When we fell we fell hard and fast. We broke through the support of the 50 MA and the cloud in one candle. Why am I bringing this point up? Because I want you all to see how fast things can turn around in crypto. One minute you are back above 10200 thinking the moon is within reach and the next you are back below the clouds hoping you dont get rained on.
There is still plenty to be optimistic about though. We are in the beginning of a golden cross on the daily time frame. It has not really accounted for any explosive rises yet but I would not ignore it. The last death cross we saw on the daily had a similar slow bleed. Perhaps this golden cross will be a slow gain??? Only time will tell. As long as we remain above the 50 and 200 MA on the daily there is a ray of hope for the bulls.
That giant gap we created this weekend was seemingly filled according to the CME charts. I have been watching the gaps for a while now and while not all fill immediately this one pretty much did fill almost right away. There are some older gaps that never got filled... One at 11800 and one in the mid 3k range. Im not telling you this to scare you. Im telling you this so you can understand that not every gap is created equal from the looks of it. I still have plenty to learn when it comes to CME and the gaps but I am picking up on it slowly but surely. (There is also a gap around 8500 although its pretty small. None the less it is still there and a relatively young gap. Possibly 2-3 weeks old. We may just fill this)
Yes we fell below some key support on the 4hr. Am I worried? Absolutely not. Halving is coming in a few months. Golden cross is alive and well on the daily chart. There is plenty to be bullish about. I would love to see us break up out of the weekly cloud. We have been fighting with the weekly clouds top border for a few weeks now and we just cannot seem to conquer the resistance. I know we all wanted to see Bitcoin go straight to the moon but that is just not how markets work. Besides a slower growth always seems to be a bit more sustainable. When we do shoot straight to the moon like we did at the end of last year when we shot from 7.5k to 10k in a day or 2, these gains dont tend to stick around. At least from my experience I can say that these explosive growth scenarios are over almost as fast as they begin. We lost all the gains of that pump I just mentioned and we even sank further than the original starting point of said pump.
My point is not all pumps are created equal either. A slower growth is just more sustainable in my opinion. Gains like this tend to stick around a bit longer. That doesnt mean the bears wont give us a gut punch. After all this is Bitcoin and we know that the rules do not always apply to the honey badger. This is why they make stop losses after all. I will be watching the 4hr chart closely today. Im eager to see if the 4hr 200 MA will hold. Historically the 200 MA on most time frames is a strong support/resistance that traders can typically depend on. Bots also love MA's from what I gather. Anyways trade with caution folks. The uptrend has broken and consolidation is seemingly on the menu. I hope you are hungry... But WTFDIK???
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