(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 my friends and welcome to my daily look into the wide world of Bitcoin. After shaking out the weak hands yesterday today is a new day but there may be more blood... Only time will tell if this turns out to be the case. I will go into depth about why I feel this way. There is plenty to still be bullish about. I will cover that as well in this analysis so grab some coffee and lets get this party started.
I see a reject at the 4hr 50 MA. I labeled it today so it is easy for the noobs to see what I mean. We recovered nicely since I laid my head down to rest. Even after creating the biggest daily red candle in history we saw a recovery long before it closed. Now we sit at 35600 and the rejection of the 4hr 50 MA speaks volumes to me. If we cannot retake the 4hr 50 MA I have a feeling we drop even further. Ive certainly been wrong before and I certainly will be wrong again... But this could very well be a bull trap.
I see a big gap up there around the upper 30k range. If we can beat that 4hr 50 MA we have a real shot at filling said gap. That is a long way away at this time so I wont spend too much time discussing this possibility. But you must understand that traditionally the gaps tend to fill rather quickly. Of course yesterday could be the exception to the rule as we dropped pretty far.
Right now we sit inside the 4hr ichimoku cloud on the chart. This cloud is known for causing consolidation and as a result we may be inside the cloud for a bit. The top acts as resistance and the bottom acts as support which typically results in stifled movement of the candles. If we can manage to remain in the cloud 35k looks like the bottom for the next few candles anyways... That is if we can manage to remain inside the cloud. Right now the bears are likely still angry and noobs may be willing to exit positions since we climbed back to 35k . I mean if you were a noob you were likely frightened of the drop that showed its face yesterday. Im used to it by now but I see many asking if they should sell and if that is you then you are likely over invested. You shouldnt be losing sleep at night over your investments. They should be a good part of your life. Not stressful.
With that in mind I drew the daily 50 MA on the chart. Its below the 4hr 200 MA which I would also consider to be a good area to look for support. That is if the bears are still hungry. I really would love to see us fill the gap from last weekend but realistically I see us staying below the 4hr 50 MA . Just using logic here. We were clearly rejected by the 4hr 50 MA this morning and have yet to test it again. I see plenty of support on the chart but 30k right now shows a lot of promise. Below that the 4hr 200 MA is our next hope. And then the daily 50 MA and so on... We could very well lose 30k before the end of the week. I would love to see otherwise and it certainly could occur. Ive been wrong in the past like I mentioned earlier. But I just feel like the sell off may not be over.
Strong hands will prosper. Even if you bought at the top of 2017 you should still have 75% profit. Not too shabby. There is very little wallets that bought above 35k and lost money in this dip. I imagine most of the Bitcoin investors around the globe should still have some profit. With that in mind I should also mention market cycles. We hit 20k on Dec 17th 2017. We broke 20k on Dec 17th 2020. We dumped January 11th 2017. We also dumped January 11th 2020 pretty far (under the daily 50 MA for the first time in 4 months) And after that we dropped until we stopped. At 3200. Some saw this as the end of BTC... But it wasnt. It was an opportunity. Even a dip to 30k is an opportunity if you believe we will make it to 100k one day. Its just a bit strange to me that the market picked the same days to pump and dump... Exactly 3 years apart.
I hope you all have a great day. Make good choices my friends. Set a stop loss if you want to long this. And always remember... WTFDIK????
TLDR: Bears finally woke up. Bulls didnt like 30k much. We recovered to 36500 (4hr 50 MA) over night before dropping again. The cloud is holding us up now but I fear the bears may not be done... Trade at your own risk!
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