Bitcoin 4hr analysis 11-11-2020
Good morning again ladies and gentlemen and welcome back to my daily analysis of Bitcoin. Today I have the 4hr time frame pulled up after more a little bounce off support yesterday. We seem to have found a comfortable spot here around 15500. The swings are pretty big at this point as 500 dollar pumps are seemingly happening multiple times a week. This volatility is what makes us traders money so I welcome the big swings. Anyways lets go ahead and get this show on the road.
I see we remained in the triangle pattern I drew on the chart yesterday. I want to point out something (just a bit of education) the ascending line of this pattern used to be ascending resistance and when we finally beat out the resistance we flipped it to ascending support that is still holding steady. Support and resistance is a crucial aspect of trading and understanding the way support and resistance works is key to becoming a good trader. Or even a decent trader.
I am noticing the 4hr bollinger bands are pretty tight at the moment. This could indicate that volatility is on the horizon. I like using the bollinger bands but I always use the bollinger bands with multiple other indicators to ensure I dont get caught up on on single indicator. That is a good way to get burned. I know a lot of traders that rely mainly on support and resistance to trade and leave out indicators entirely. I am not that type of trader. I love MA's and there is plenty of evidence that supports the fact that MA's work as advertised. Same goes for the ichimoku cloud. I get a lot of value from using the indicator. But like anything else there are times when an indicator will fail. That is when a stop loss is crucial.
We have also failed to establish the higher high that us traders desire. The issue here is we are clearly inside of a pattern that doesnt allow higher highs. This pattern calls for higher lows though along with lower highs. That is what I call consolidation and that is why the bollinger bands are tightening up. Not to mention the fact that we will have the 4hr cloud and the 4hr 50 MA directly below us. They are pretty much combined and as a result of this combination it should inject the market with some much needed confidence.
This triangle we are inside of could fail anytime between now and November 19th. I know that is a pretty big range but I suspect we leave this triangle behind long before that. I suppose only time will tell for sure. I cycled through my favorite time frames (1 day and 1 week) this a.m. and noticed if we remain at these levels through Sunday we may see a bearish doji form at the top of an uptrend. On the weekly this could spell blood in the street. I wouldnt jump to any conclusions but I would set a stop loss. Hopefully by the time Sunday rolls around things will look a bit different. I hope you all have a great day. Make good choices folks! WTFDIK right?
TLDR: Consolidation. Bring a book. This could be a while
I see we remained in the triangle pattern I drew on the chart yesterday. I want to point out something (just a bit of education) the ascending line of this pattern used to be ascending resistance and when we finally beat out the resistance we flipped it to ascending support that is still holding steady. Support and resistance is a crucial aspect of trading and understanding the way support and resistance works is key to becoming a good trader. Or even a decent trader.
I am noticing the 4hr bollinger bands are pretty tight at the moment. This could indicate that volatility is on the horizon. I like using the bollinger bands but I always use the bollinger bands with multiple other indicators to ensure I dont get caught up on on single indicator. That is a good way to get burned. I know a lot of traders that rely mainly on support and resistance to trade and leave out indicators entirely. I am not that type of trader. I love MA's and there is plenty of evidence that supports the fact that MA's work as advertised. Same goes for the ichimoku cloud. I get a lot of value from using the indicator. But like anything else there are times when an indicator will fail. That is when a stop loss is crucial.
We have also failed to establish the higher high that us traders desire. The issue here is we are clearly inside of a pattern that doesnt allow higher highs. This pattern calls for higher lows though along with lower highs. That is what I call consolidation and that is why the bollinger bands are tightening up. Not to mention the fact that we will have the 4hr cloud and the 4hr 50 MA directly below us. They are pretty much combined and as a result of this combination it should inject the market with some much needed confidence.
This triangle we are inside of could fail anytime between now and November 19th. I know that is a pretty big range but I suspect we leave this triangle behind long before that. I suppose only time will tell for sure. I cycled through my favorite time frames (1 day and 1 week) this a.m. and noticed if we remain at these levels through Sunday we may see a bearish doji form at the top of an uptrend. On the weekly this could spell blood in the street. I wouldnt jump to any conclusions but I would set a stop loss. Hopefully by the time Sunday rolls around things will look a bit different. I hope you all have a great day. Make good choices folks! WTFDIK right?
TLDR: Consolidation. Bring a book. This could be a while
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