Good morning everyone and welcome to my daily analysis of Bitcoin . Today I am taking another look at the 4hr mainly because my indicators are catching up with the candles and things look pretty decent if you are a bull. Im not saying we are completely out of the woods yet by any means but I can say yesterdays pump was a welcome pump. The entire market atmosphere as a whole has been a bit down since the start of all this craziness. Its nice to see hopium returning.
We we have been breaking though resistance after resistance on the 4 hr time frame. We muscled our way above the the 50 MA yesterday a.m. and I was curious to see if the bulls would keep that momentum going into the day. Well the momentum did continue and we hurdled the cloud this morning. So we are sitting above the 4hr 50 MA and the 4hr cloud. These are considered bullish signs. We are still below the 4hr 200 MA which is pretty far above us at the moment.
On our trek up we were bound to find some resistance at some point. We can see that the .786 fib (6900) rejected our attempt to break through and as of right now 6900 is resistance. RSI is spent on the 4hr so breaking through this particular fib may be easier said than done. The American market should be waking up very soon and while I dont see a lot of volume pouring in today perhaps the $1700 rise in a matter of 2 days got some peoples attention and they may fomo in as a result. No promises. We will see in a few hours.
The bolinger bands were tight right before this rise began. If you look at the candles while we were consolidating for a few days below 5500 the bolinger bands had a chance to catch up with the candles and tighten while the candles were in consolidation. As a result we saw a break out sending us to 6900 before being rejected by the .786 fib. The good news is we broke above the cloud. The cloud will likely provide us with some much needed support. The 50 MA as well but since it is further down currently than the cloud my faith is in the cloud for now… Not to mention the .5 and the .618 fib are still below us that could provide us with a safety net in the event of another dump. At this point I will take what I can get. WTFDIK????
TLDR: Im cautiously optimistic watching the current rise and I am long with a strict stop loss in place that I will only walk up.. Not down. Let the chips fall where they may. (We are above the 4hr 50 MA and the 4hr cloud, both of which are bullish )