Bitcoin 4hr analysis 10/17/2020

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Good morning ladies and gents and welcome back to my daily look into the exciting world of Bitcoin .. Today I have the 4hr time frame pulled up again. I know you guys know this by now but I must say that while I think the daily is the most significant time frame, the 4hr is my go to for my day to day trading. You can just see a bit more action on the 4hr compared to the daily. I still like to cycle through a few time frames every day to see what I can see. But the 4hr and the daily are at the top of my list if you couldnt tell. Anyways lets take a look at the chart and see what the heck is going on.

Okay the first thing I notice is the 4hr cloud has been breached. This means we have officially entered the 4hr cloud. The cloud is known to be confining and the cause of consolidation. No sweat tho. The weekend is typically not stuffed with bullish moves. But 11300 is seemingly holding for now. But how ling will that last? Now that we lost the support of the cloud and the 4hr 50 MA mind you we may drop to fill the gap from last weekend (11100 – 11275 approximately) Of course only time will tell for sure.

I thought a head and shoulders was forming yesterday on the 4hr and that we could potentially drop as a result. But apparently that was not the case. The market will decide ultimately if something like this ( head and shoulders ) and I guess it decided that this was not defined enough to have an effect. I would rather warn all my followers about the possibility rather than ignore it and possibly watch a few people get burned. The best way to handle something like this is to set a stop loss. Simple as that.

You guys know I dont want to see us drop to 11100 but it may be for the better good. We can eliminate the gap from last weekend and refuel a bit for take off Monday! Sounds good doesnt it? Just dont count those Bitcoin before they are mined lets put it that way. If you plan to play this market in this state I suggest what I always suggest. Stick to a plan. Set a stop loss. Buffet said it perfectly… “An idiot with a plan can beat a brilliant man without one” This is the truest statement I have read in a good while.

I know its easier said than done but a trading plan isnt that difficult folks. It requires you to follow steps every single time you make a trade. Set a stop loss, make sure the trade was made, (believe me I forgot to execute trades in the past and thought I had tons of profit only to be disappointed, but that mainly occurred when I switched from Binance to Coinbase pro and Kucoin) Anything else you can think of to make your trades go smoother should be incorporated into the plan you come up with. I could write about this plan for an hour. But I will leave it at that so I can finish my coffee and pester my kitty cat. I hope you all have a great day. Make good choices! PLEASE MAKE GOOD CHOICES! WTFDIK??

TLDR: Fell under a bit of former support that is now resistance (4hr 50 MA and the 4hr cloud {top border} ) Things dont look particularly terrible and 11300 is holding steady. But the weekends are typically lacking volume and we could fill in the gap from last weekend before this weekend is over (which would be a blessing if 11100 holds)