(The red and green arrows are the Aurox Indicator and they recommend a buy or a sell. Red indicates where you should sell and green indicates a buy zone. Pretty simple indicator but rather effective if I do say so myself.)
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 a little dump occurring overnight. The bears fought the bad fight and took us down to former support. But will these bulls mount the comeback we all desire? Well if we are a bull... The market has been a bit volatile as of late. Nothing a vet like me isn't used to... I have plenty to discuss this morning so go grab a coffee and pull up a chair...
The 4hr 50 MA is the savior... At least for now anyways. We should know in the next 30 - 40 minutes whether the bulls have the strength to keep the current candle from dropping below that 4hr 50 MA. It's a knockout drag out MMA fight between the bulls and bears over the 4hr 50 MA. It's not uncommon to see the bears and bulls fight for position on the charts. Especially when the candle is closing. Keep an eye on the current candle. It is a big red candle but the difference between closing above $60,620 (4hr 50 MA) and below 60,620 makes all the difference in the world in my opinion. Show me what you are made of bulls!
(Wanna learn to trade? I can help... My course is growing daily. Msg me for details)
Okay so the drop last night pretty much clobbered any ideas of extending that trend we were enjoying. So the trend is no longer a friend. Just like real life. Friends come and go... Just like support and resistance and trends. Sorry to get so philosophical but that coffee is hitting just right this a.m. There is a real chance that we close this current candle below the support of the 4hr 50 MA. So as a trader you should prepare for this. The current candle seems pretty heavy. This is just my opinion. I would love to see the bulls awaken from their slumber and prove me wrong. I dare ya!
I drew a big white rectangle onto the chart. This is more of a range I think we could expect to see some support. Even now we are witnessing the support (4hr 50 MA) show its face in this range. Also back at the end of March all the way til the 7th of April we have evidence of support at this particular level. So I would expect to see some promise as far as support in this area. Either way set a stop loss. My stop tripped this morning. That means I exited the trade. Bam... Nice profit from that last trade and nice exit. Now that my stop loss saw me exit safely from my trade I can look for another place for reentry... Perhaps it will be this bounce off the 4hr 50 MA? If I were to play that I would set a stop loss right away. Just in case the bulls do not rally like we hope they will.
Volatility.. Many people complain about the volatility involved with trading BTC. I can promise you that it is in fact volatile. But is that such a bad thing? I think not. If you are a trader like I am, volatility is absolutely your best friend. You just have to learn to use it to your advantage. Learn to trade against the grain so to speak. With your own twist on it. My strategy is simple yet effective and low risk. That is why I love it. I teach this trading style in my trading course and I enjoy spreading that knowledge to my followers. It may not be leverage money (as far as trading) but it's much less risky. If you are having issues making good trades take the money out of the equation. Paper trade... Simple. Put an arrow where you buy and treat it like a real trade. It can help you build your courage up and also help you gain much needed experience. I paper traded for months after pretty much losing the first few hundred I put into my wallet for my first bout of trading. It helped me a LOT!
It's Friday! So enjoy the day folks! But set a stop loss! If you have not already been stopped out by this morning's red candles. It happens. Getting stopped out is common for me as I walk my stop loss up as a part of my strategy. I entered this last trade April 8th when we got back above the 4hr 200 MA. I saw that as a chance to take advantage of a possible bounce off the 4hr 200 MA which happened like clockwork. I continuously have been moving my stop loss up as the candle climbed to the new ATH of 65k... I had my stop loss set just below the trend support as I felt if we lost the support of the trend we had a decent drop ahead of us. And that worked out as well. I missed the 65k top but that doesn't bother me. I still picked up all the profit from where I entered my trade at $56,350 to $61,300. This is how I trade. I never get the top. The top isn't what I want. I want the chunk of profit below that. Do I leave money on the table by not catching the top? Sure. But try catching the top and see how frustrating it can be. You end up selling and then we pump again! That is why I like walking up my stop. It allows me to remain in the trade indefinitely...
I've already been typing too much this morning so I will wrap it up here. The bears are awake early this morning so make sure you bring that bear mace if you want to enter a position. I'm waiting for the dust to clear before entering another position myself. I see possible promise of a 4hr 50 MA bounce but there is still 14 mins til the 4hr candle closes. Whether it closes below that 4hr 50 MA or above it will make all the difference in the world. This is why patience is so important when trading. Waiting til the candle closes could prevent you from making an entry where otherwise you would never do so. I know you may think making an early entry will let you get ahead of the crowd but sometimes patience can really make a big difference. I hope you all have a wonderful Friday and a fantastic weekend. Make good choices my friends. And always remember WTFDIK???
TLDR: Bulls slept in while the bears are awake early causing trouble. Bring your bear mace if you want to play this current market. It feels dumpy but we do have a lot of support at the moment still so I'm cautiously optimistic
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