Bitcoin 4hr analysis 8/28/2020
(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 pulled up today and not too much has changed since yesterday. I see reasons to suspect that we may have some issues retaking support today. I will explain why in a minute. The bears are in position to take us down another notch if the bulls dont fortify the defenses so to speak. Lets take a look at the chart and see what we can see.
The first thing I want to bring up this morning is the fact that we are underneath my trading setup. At least we are on the 4hr time frame. The 4hr 50 MA, 4hr 200 MA, and finally the 4hr cloud. What is really concerning is the fact that all the indicators I just mentioned have converged to almost a single point on the chart. What does that mean? Well with the 4hr 50 MA, the 4hr 200 MA, and the cloud above us things look a bit bearish short term. Especially considering the fact that they are almost all combined into one super resistance. between 11500 and 11650 will be tough to retake as a result.
Now a quick cycle through larger time frames and things dont look as bearish as they do on the smaller time frames. Nothing goes up forever. Considering the fact that we have a lot of resistance above us (as I mentioned earlier) the path of least resistance is down for now. I see the daily 50 MA below us which could provide us with some support. It is around 10700 and in the event of a bleed I believe the daily 50 MA would provide some relief. Of course only time will tell.
11100 seems to be pretty strong support as it has been pretty stiff support for all of August pretty much. So looking below 11100 is important. We need it to hold through the weekend and hopefully by the end of the weekend the 4hr 50 MA and 4hr 200 MA and the 4hr cloud are not combined anymore. Eventually they will become untangled and as a result each individual indicator would be easier to beat on their own.
All in all we are still above 11k and that is a win in my book. I know patience is in short supply in this market. We are used to big swings that occur quickly. I know my strategy is to set a stop loss and stick with it. I suggest you all do the same. We all know how fast a pump or dump can materialize. So defend your profit. Have a great day folks and make good choices! WTFDIK??
TLDR: 11100 needs to hold. We have a lot of resistance above us and retaking 11500 will be easier said than done.
https://aurox.app/s955
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