Bitcoin (BTC) 4-Hour Technical Analysis for 9-2-2020
/BTC MAKES STRONG CORRECTION AFTER RUN TO $12K
We've got some strong red candle action happening on Bitcoin as it is currently dipping down to $11,342. That's quite a correction after briefly surpassing the $12,000 mark. Let’s take a look at the indicators and price line clues on the chart provided by Tradingview.
The price line is taking a vertical dive on moderate to strong volume, just days after the 50-day EMA has crossed under the 200-day EMA. This could be a slightly bearish indication in the short-term, and confirms this bearish trading channel on the micro level.
Take note that DXY (US Dollar) is making a strong move back upward, re-establishing a position above its 200-day EMA. We don’t know how long this move will last. But we DO know that strong DXY moves tend to coincide with BTC corrections. We will keep our eyes on the DXY chart for correlation evidence.
While we are trading below both exponential moving average lines, I do see a possible stopping point at around $11,000 when the BTC price line hits the magical 3.618 fib circle ring that I have constructed on my TradingView chart. If you want the starting and ending points of this magic fib set, you can check it out on my TradingView site at the link below.
The stochastic is looking angry, with a definitive and aggressive downward move that will probably land in the oversold zone, which we have not been in for quite some time. There is a possibility that this correction could take BTC lower, and the price action after the crossing of the 3.618 magical fib circle ring will give us clues.
Watch the volume. If we get some fat red candles, or if volume just slows significantly, this would combine for quite a correction. I’m waiting to see if that CME gap in the $9,000 range will be filled, or forgotten. Time will tell.
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Carlton Flowers
The CryptoPro
NOT FINANCIAL ADVICE - Entertainment purposes only. Seek a qualified investment advisor before making any decisions on purchasing cryptocurrencies.
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