Trading Bitcoin: $7.5k on October 5th

$7.5k Incoming?

On the daily chart above, Bitcoin is on a green 4 of 9 candle. However, sequential will experience a price flip tomorrow to a red 1 if Bitcoin does not close above $8.3k. Since price has no significant bullish momentum, we are anticipating tomorrow’s candle to be a red 1. If the next day closes below and forms a red 2, that will likely lead to a large sell-off into the $7.5k price region. Additionally, the Lucid SAR (blue x’s) remains in a bearish posture while acting as resistance.

4 Hour

Bitcoin’s 4 hour chart tells a very similar story. Price is currently on a sequential red 4 with the Lucid SAR acting as bearish resistance. Also, the 50MA (grey) is serving as resistance at $8.2k.

Conclusion

Not much has changed since yesterday’s analysis. Overall, we are watching October 5th as a critical date for a breakdown. Price will likely form a red 1 on the daily chart tomorrow. If we see a red 2 on October 5th, price will likely decline to the $7.5k price region.