Bitcoin 4hr analysis 9/1/2020
(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 ladies and gentlemen and welcome back to my daily analysis of Bitcoin. Today I am focused on the 4hr time frame after a little pump action over night. I love waking up to green candles. It makes my analysis much easier. The monthly ended yesterday and August was a great month. Another solid green candle on the monthly. Things are looking bullish if you ask me. Sentiment is definitely pointing that way as well. Lets take a look at the chart this a.m. and see what is going on.
First of all the combined support proved to be too much for the bears and we used the 50 MA and the 200 MA on the 4hr as a launchpad to take us to almost 12k overnight. I knew when we escaped the confining nature of the cloud we would likely see a green candle or 2. I like what I see on the 4hr and with all the support below us currently confidence should be in high supply.
On the daily is still slowly catching up to the candles. The daily 50 MA and the daily cloud (top border) are merged at approximately 11k which means even if we lost the entire array of support on the 4hr (4hr 50 MA, 4hr 200 MA and the 4hr cloud) The daily 50 MA along with the daily cloud should pick up the slack at 11k. Im not saying we are dropping. Not by a long shot. I just like to be aware of my surroundings just in case a drop does materialize.
In the recent past we have had trouble managing a price above 12k for very long. Right now we are attempting to retake 12k and if we do it will be crucial to take the range and keep it. When traders see us keep being rejected around 12k they get used to that and start playing it to their advantage. That makes it even tougher to beat 12k. If we really want to see some sparks a higher high will do the trick. Anything over 12600 will do. I may sound a bit greedy but it is what it is.
I am happy we are not confined by the 4 hr cloud anymore and we saw the jump to nearly 12k as soon as we exited that cloud. That shows us how confining the cloud can be. If you want to know where I would set a stop loss today I would likely put it under the 4hr 50 MA and the 4hr 200 MA along with the 4hr cloud. If we lose all that support a drop is likely going to follow. People always ask me "Tim where do I set a stop loss?" Or "where is the best place to set a stop loss?" I would say any place that it looks likely we will drop if we lose the support. For instance the 4hr 50 MA and the 4hr 200 MA along with the 4hr cloud are approximately in the same general area. That makes it quite strong as support. So I know if we do lose those 3 indicators to the bears a drop is coming most likely. Just a quick bit of advice on how I set a stop loss. Have a great day folks. Make good choices! WTFDIK???
TLDR: we escaped the 4hr cloud. A nice green candles showed up right after. 12k is acting as resistance currently. Cmon bulls!
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