Good morning everyone and welcome to my analysis of Bitcoin . Today I am taking a look at the 1 day chart to see what I can see. I see a few things to be happy about if you are a bull but that doesnt mean you should take out a loan to invest. These are uncertain times and while I am a huge fan of TA I cant guarantee that fear and panic wont take over again causing another sell off. Times like this sure make you appreciate a stop loss.
That falling knife penetrated all the way to 3700 a few days ago. The big wick on the candle that kissed 3700 shows that the bulls fought back to bring us back to where we are currently and that is over 5k. I know I have been picking up small amounts of BTC ever since it dropped below 8k. I love to trade but I also hold BTC in my cold storage (Bitbox) for a rainy day. I did not catch the bottom. Not even close lol. But I did manage to scoop up some pretty cheap BTC . I think the lowest I bought during this dip was around 4800 if Im not mistaken.
I threw a couple of lines on the chart that represent a few different areas of support/resistance that we should all be watching. First there is the bottom support that has been active for over 2 years. We managed to find support here and that is key. If we fall below this support things could get really ugly. I thought falling below the weekly 200 MA was the catalyst to more red candles but it appears this support line is still valid. But if we do fall below that the bulls wont like it. The blood may just continue running in the streets.
There is a different support I threw onto the chart that has been active since last years ATH ( 14k ). It is descending and we have tested it at least 5 times. Seeing as how we are in consolidation at the moment and we have these 2 key areas of support directly below us that has to be some sort of comfort for the bulls. But when you look above the candles on the chart we have our work cut out for us if we want to climb more.
Right now I am long with a stop loss set. Simple yet effective strategy folks. If my SL trips I am out. No thinking about it…. No emotions. I will just wait until I get another chance and hit the next one out of the park so to speak. I dont recommend anyone risk money they cannot afford to lose at the moment. Thats the way you should always invest but just a friendly reminder. I do think we are do for a bullish bounce (hence why I am long) but I cannot depend on emotions alone so that is why I always push stop losses onto you all. With the economy and markets around the world in disarray we need to be on our toes as traders and use the tools provided to us to ensure we dont lose our heads. The halving is in weeks folks! Lets hope it pushes BTC to a new ATH! But then again WTFDIK right?