(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 ladies and gentlemen and welcome back to my daily analysis of Bitcoin. Today I have the 4hr time frame pulled up after more of the same old consolidation. I see a few things on the chart that lead me to believe breaking up will be a chore at this point in time anyways. There are a few things that need to happen in order to stop the bears and reverse this drop. Lets take a look at the chart and see what is going on.
First thing I wanted to discuss is the fact that resistance is really built up where we sit on the chart. The 4hr 50 MA (orange line) is obvious resistance but the 4hr 50 MA has seemingly merged with the 4hr cloud (bottom border) and as a result breaking through built up resistance will be more difficult. It definitely CAN happen and anyone the has been in BTC for any amount of time understands how contrarian BTC can actually be. But when resistance is built up like this traders take notice and confidence may not be as strong as it would be otherwise.
9800... That has been a place the wicks will visit on their deep plunges as of late. But we always have recovered nicely even hitting nearly 10500 on the bounce. That is a pretty decent swing if you can time out your buys but that reliability of the 9800 support may not last much longer as the 4hr 50 MA is descending deeper and will eventually interfere with the 9800 support. Lets just hope the 4hr 50 MA doesnt push us down with it..
We have a lot of cloud cover on the charts still. We are beneath the 4hr cloud and the daily cloud. Both of which are bearish in nature. If we want to really reverse this recent drop is to bust our way back up through the 4hr cloud. That would definitely be a good start. We really cannot break up through the 4hr cloud without attacking the daily cloud at the same time due to their positions. Anything is possible with BTC and I have seen BTC drive right through a mountain of resistance. But I think its better to enter a trade knowing all of the possible outcomes vs. the alternative.
The 4hr bollinger bands are tightening up as well which indicates volatility is close. We have numerous gaps on the chart but the 2 that are most prevalent at this time are the ones I pointed out on the chart. We see one just above resistance that will be closed when the price reaches 10600 approximately. Below us there is a tiny little gap I would like to see get filled before we go anywhere else. This particular gap resides around 9700. It was hard for me to draw on the chart as the range was so tiny. But the gap is still technically unfilled and as a result I am keeping an eye on it.
The weekend is coming and that may be a good thing or a bad thing... The bears may need a relaxing break after wreaking havoc on the charts all week. Anything can really happen during the weekend but typically I recognize the weekend as a slow time. We will see if this actually comes true this weekend. I sure would like to see us at 13k before the end of the weekend but Im not holding my breath lol. Just an update for anyone that cares. I got a new kitten. I havent named her and was thinking I would make a poll and let you all pick the name. I may even have a giveaway lined up. I still am working out the details but I think it would be fun. (The kitten is a little girl and she is 10 weeks old. She is a beautiful grey color (almost blue) and she is already warming up to me) Anyways I hope you all have a great day. Make good choices! WTFDIK???
