Can Bitcoin Break above $4,200?

Over the previous two weeks, Bitcoin has traveled in a very tight range with little movement or volatility. When viewing the weekly sequential indicator below, our week is about to make a ‘6’ of ‘9’ candle which is still technically bullish. However, it is fairly dangerous to buy a ‘6’ of ‘9’ candle at the risk of an immediate trend reversal. If Bitcoin reaches a ‘9’ candle in the next three weeks, it would be a good selling indicator and potential shorting opportunity. It is also important to note that the bulls are coming up on the 128 MA. In the last few weeks, the moving averages have been falling drastically as the 128 MA is about to cross the $5k level. With the 128 MA at $5k, there is still room for price to move to the upside while the bear market remains intact.

The daily chart below is coming up on a ‘6’ of ‘9’ candle with the 128 MA acting as tentative resistance at roughly $4,030. If a ‘9′ candle emerges on the daily chart three days from now (at a price of roughly $4k), that is a probabilistic short opportunity with the indication of a short term trend reversal. For now, it is difficult to have conviction in a swing trade in either direction. Bitcoin’s primary support channel is currently at $3.6k with the 200 MA acting as support below. As of now, we are in a stalemate with weak bullish momentum.

To truly confirm a reversal, Bitcoin would have to cleanly break above $4.2k and form support at that same level. Until that scenario occurs, the macro trend remains bearish as the bulls and bears fight their way through a stalemate.

In other news, Texas introduced a bill on March 8th which would ban the anonymous use of Bitcoin and other digital currencies. It is the first bill of its kind, but there are still difficulties and questions involved with enforcing the legislation. Perhaps it will force certain individuals to use a privacy coin such as Monero in which the sender, receiver, and amount are concealed. Even the FBI has admitted their difficulties tracking Monero transactions.

Disclaimer: I am not a financial advisor. This is not financial advice. Please do your research independently and make objective decisions. This article is intended to educate readers on the recent state of the Cryptocurrency market. The author of the article owns cryptocurrency.