Bitcoin 4hr analysis 8/26/2020
(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 my 4hr chart pulled up after a little dip yesterday. Nothing we cant deal with though. A dip to 11100 had the bulls sweating yesterday. A well placed stop loss could have prevented much heartache... But the past is the past the future is now... Lets take a look at the chart this morning while I sip on this bomb coffee.
We dropped. Hard. We lost the support of the trend drawn on the chart.. The blood may not be through spilling as well folks. The drop saw us fall below the 4hr 200 MA . I was really expecting the 4hr 200 MA to provide some sort of support, but alas it was not meant to be. The bears were on their game yesterday and caught the bulls sleeping. We did recover to the 200 MA but I was hoping it would be support in the event of a drop. But it became resistance as we ended up below the 4hr 200 MA. Although I see a glimmer of hopium. The current candle is muscling its way above the resistance provided by the 4hr 200 MA. Stay tuned!
We are still sitting pretty above 11k so I guess we could take this as a win. But if we cannot retake the 200 MA on the 4hr I fear this pattern could develop into a continuation pattern which follows the current direction of the candles. Right now the most recent move was the drop from trend support yesterday and a small trek back up the 200 MA followed by another drop. This is how a typical bearish continuation pattern works. I drew it in arrows on the chart.
So you can see the little symbols I threw on the chart this a.m. So if we can get back above all the mess we got ourselves in I think we can easily eclipse the yearly high of 12500 (approximately) The symbols explain themselves pretty much. In order to get that confidence in the market stoked again we need to retake lost support. The 4hr 50 MA and the 4hr cloud. If the bears are determined to keep the red candles going we could easily lose 11k. We have support on the daily around 10700 (daily 50 MA) so I imagine this could provide some needed support in the event of the bulls throwing in the towel.
Nothing is written in stone folks. We are still sitting pretty when you zoom out. When you zoom out you cannot even see the drop we experienced yesterday. Im not saying go all in but zoom out a bit if you are freaking out and that should quell your fear. Im still quite optimistic. We recently conquered the 2.5 year resistance that was plaguing us since we reached 20K in 2017. The halving is a few months behind us. These are the variables that have me second guessing the bears. Cmon bulls! I'm rooting for you!! Have a great day folks. Make good choices! WTFDIK????
TLDR: We lost trend support and the 4hr 200 MA yesterday. 4hr looks bearish. Zoom out a bit and things look a bit better. Set a stop loss and keep an eye on your trades! Im getting ready for a possible hurricane hit today so if you dont hear from me tomorrow its likely due to no power. I will attempt to share an analysis regardless but just so you know. Be safe!!!
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Very good