Trading Bitcoin: $6k Incoming?

$6k Incoming?

While Bitcoin reached a green 2 on the daily chart yesterday, price has dropped -1.6% today. Currently, Bitcoin is on a green 3 on the daily sequential indicator. Price still faces resistance from the 50MA (grey). Overall, the daily chart was mildly bullish yesterday but has now shifted into a neutral posture.

4 Hour

Bitcoin’s 4 hour chart is presenting some strong bearish indicators. For instance, the sequential indicator activated a short trade when the red 2 candle closed below the previous red 1 candle. Additionally, our current red 3 candle looks as if it will close below both the 200MA (orange) and the 50MA (grey). However, the Lucid SAR (blue x’s) are still in a bullish position above price.

Weekly

Today is Monday and price has now given us a red 2 closing below the previous red 1. Sequential theory activates a short trade when these circumstances occur however, our previous green 1 was a reversal candle and the red 1 we received directly afterward was a neutral candle.

Hourly

Bitcoin has reached a red 8 on the hourly chart above. Therefore, look for a potential reversal when we reach the red 9 in one hour. Additionally, the 1 hour RSI is nearing profoundly oversold levels.

Conclusion

Except for the hourly chart, Bitcoin is not presenting any significant bullish indicators. As of now, price continues in the downward parallel channel.