Bitcoin daily outlook 9/24/2020
(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 look into the mind of Bitcoin. Today I have the daily time frame pulled up after a little sideways consolidation yesterday. I will say that I am a bit relieved and I will explain why later in this analysis. Looking at what is on our plate what can we expect next? A full blown recovery or will we lose 10k? I will do my best to introduce a logical analysis to you all this a.m. So lets bust out the crystal ball and go full blown Madame Cleo this a.m.
Call me now for your free psychic reading LOL. But seriously the .618 fib held. that was crucial. We dont have much beneath us in terms of support currently. Especially on the 4hr time frame but also on the daily. If we keep losing support confidence will continue to leak from an already deflated market leaving the door open for the bears to take us down below 10K. Even if that does happen Im more worried about another level failing. I will explain.
If we drop to the 9k level that would put us back onto the top of the 2.5 year trend line that has been a feature of my analysis' for ages by now. This descending support is right around 9k currently give or take. This is the proverbial line in the sand. It took us 2.5 years to break through this proverbial line in the sand and when we did we saw nearly 3k in gains. Not too shabby. If we lose this support though what can we expect? A 3k loss? I wouldnt go that far but I have seen stranger things. Again not the netflix series. Although I have seen the series on Netflix. I give it a 7/10.
Yesterday I said I thought I saw an inverse cup and handle on the 4hr. It doesnt look like that came to fruition which is great for the bulls. These patterns are really hit and miss and if the majority of the traders etc the majority of traders must not have agreed with my call that it looked like an inverse cup and handle. I have only seen very few cup and handles and even fewer that actually panned out. I remember when I first got into trading everything was either a cup and handle or a head and shoulders lol.
We can beat around the bush all day but the fact is a lot of confidence has been leaking from this deflated market. I wrote a few things on this chart this a.m. for the noobs in the room. Look where support used to be. The .382 fib (11100 approximately) acted as support from early August to early September. This is significant. After creating a decent looking head and shoulders at that level we dropped hard all the way to sub 10k briefly. 10k held for a few reasons. One reason is it is a psychological support. 5 figure BTC vs. 4 figure BTC... So back to support and resistance. The .382 was support for all of August but as soon as the H&S took us below the support it became resistance as seen when we attempted to break through the former support September 19-20. Support usually becomes resistance and vice versa. That simple lesson is also very very paramount when you are learning how to properly analyze a chart. The most important thing any of us can learn if we desire to master reading a chart is the basics. Starting with support and resistance and how to identify these areas on the chart. From fibs to historic support/resistance. I try to incorporate little lessons into my analysis on occasion. Sorry for the long rambling lol. Have a great day folks. Please Please make good choices!!! WTFDIK???
TLDR: Consolidation. I dont think the inverse C&H will come to fruition. Meanwhile lets hold 10k bulls. I see support at 10200 and 9660 (both are fibs) Below that is the proverbial line in the sand or the 2.5 year descending trend line. Lets hope that holds. If not we are likely to drop pretty hard.
Buy Bitcoin with 0% Credit Card Fee in Crypto.com App
Download Crypto.com App and Buy Bitcoin now
iOS : https://apps.apple.com/us/app/id1262148500
Android : https://play.google.com/store/apps/details?id=co.mona.android
Detail about 0% Credit Card Fee promotion: https://blog.crypto.com/3x3-extension/
Detail about Crypto.com App: https://crypto.com/en/wallet.html
Trade Bitcoin and Earn Taker Fee
Crypto.com is now doing a stake-to-take program where you can earn up to 100.01% of taker fee you paid
Register on Crypto.com Exchange and earn from trading Bitcoin :
Want more ? Here are additional incentives for new exchange users
- 2% bonus paid in CRO for any crypto deposits (on-chain)
- Stake CRO for 180 days and earn 20% p.a. daily, paid in CRO
*All above benefits would have conditions applied, please refer to crypto.com exchange support document : https://help.crypto.com/en/collections/2031951-crypto-com-exchange
** Crypto.com exchange is not yet open for US residents