Good morning fellow bulls and welcome back to my daily adventure into the world of Bitcoin .. Today I have the 4hr time frame pulled up after some wild chart movement yesterday. The elephant in the room is evident and we will touch on that further in this analysis. The bulls have let the bears have a bit of fun over the last 30 days but they seemingly have had enough and have retaliated. Now we sit just below 46500 and things look very good. At least short term. Lets take a closer look.
Okay that elephant in the room I mentioned earlier is Elon Musk . The killer of shorts. His purchase of 1.5 billion Bitcoin yesterday cemented his status as legendary while also cementing the idea that Bitcoin is in fact legitimate. Why would one of the richest people in the world start openly collecting BTC? The answer is obvious. Despite the worlds rejection of Bitcoin over the last 12-13 years now it the time for Bitcoin to shine. Just remember that the guy that created the television was told it would never work by those in Radio. Just like those naysayers that spoke down on BTC . Especially you Peter Schiff! How you like me now? When Elon bought 1.5 billion USD in BTC that was a statement. Sure he wants to make profit but also show people his distrust of the USD… Stay tuned!
The break above 42k was a bit surprising to me. I mean when will they make the “Elon indicator”? It is so difficult to perform valid TA when outside forces have a big effect on the market. Im not complaining though. So now that we are above 42k this is the time I start assessing the situation. Like what happens if we continue rising? What happens if we drop? Where is support? All important questions all traders likely ask themselves when we are on new ground. There isnt much data above 42k but I will point out what I know.
Minor support is directly below us currently around 45600ish. It could be give or take a few hundred bucks tho so just roll with the punches and set your stop accordingly. We are on shaky ground no matter how you slice it. At least until we spend a bit more time around this level. We are currently carving out future support and every piece of data collected at these levels is crucial. As we have so little to go off of at this level. But if the minor support below us fails I see some support around 42k as well. (obviously) 42k is major support so it should hold if we do get that low. Although if we did break down from this major support it would flip back to resistance and we would be in the same predicament as we were a few days ago. With 42k above us.
How do I handle things like Elon throwing money at Bitcoin? I mean its not like Elon hit me up and told me “Hey Tim im bout to load up on BTC . Make sure you take that into account on your morning analysis!” I mean me and Elon are cool. Just not that cool. 😛 (The last statement may or may not be factually accurate) I typically dont change my strategy much. I mean if I miss the pump I dont swing. Like Buffet said… Its like a batter at the plate in baseball. Except you dont strike out. You just wait for the right pitch. You may wait for 200 pitches before you swing. And if people yell “Swing you bum” Just ignore them. When I can catch a pump like the one yesterday all I do is walk my stop up with the price. This locks in profit and that is the gist of my strategy pretty much. Not rocket science at all. Just requires logic and patience.
I have a trading course that offers newer traders an opportunity to learn to read a chart properly. If you are interested message me. We currently sit above plenty of support so the market should be brimming with confidence. The bulls are clearly still in charge but will the bears regroup and mount a counter attack? Only time will tell for sure. With the bears licking their wounds from yesterday we could see anything happen today. Be aware and be cautious. Make good choices folks and always remember WTFDIK????
TLDR: Elon pumped us to a new ATH . Thanks bro! Bulls are still in charge. Set a stop loss.