Cryptocurrency
Trading Bitcoin: $9.5k Bottom?
$9.5k Bottom? After a week of downside price action, Bitcoin is about to reach a red 9 on the daily chart above. In some cases, a red 9 is a good opportunity to catch a falling knife or buy the dip. If price reaches a red 9 tomorrow, there’s a decent likelihood we may see […]
$9.5k Bottom?
After a week of downside price action, Bitcoin is about to reach a red 9 on the daily chart above. In some cases, a red 9 is a good opportunity to catch a falling knife or buy the dip. If price reaches a red 9 tomorrow, there’s a decent likelihood we may see a retest of $10k. Additionally, price is currently forming a doji candle on the daily, which is typically characteristic of a trend reversal. However, we could also restart a red count and drop to support at $8.5k.
4 Hour
Bitcoin has fallen below all moving averages on the 4 hour chart. Currently, Bitcoin is on a green 1 candle. According to sequential theory, we do not place trades on green or red 1’s. It’s better to wait for a confirmation 2 candle. For example, if Bitcoin forms a green 2 candle which closes above our current green 1 candle, that is an indication to place a long trade with a stop loss on a micro 4-hour time frame.
Dollar Index (DXY)
In last week’s article, we noted that the DXY was bullish considering the sequential indicator closed with a green 2 above a green 1. If you decided to place this long trade you’d be sitting with a decent profit. Let this be an example of the efficacy of sequential theory.
Weekly
Bitcoin is currently on a red 3 of 9 candle. Bitcoin’s weekly macro trend still appears bearish. If the bulls cannot regain momentum for a retest of $10k, price may easily slip into the $8.5k region.
Cryptocurrency News
The controversial stable coin Tether goes to court today. Many think this will be bullish for the price of Bitcoin. Traders use Tether to take profit from their trades. The slightest fear surrounding Tether may force traders to transfer their Tether into Bitcoin forcing price to surge. Either way, it’s too early to make conclusions about how the outcome will effect the market.
Conclusion
Bitcoin has broken below the critical support level of $9.6k. This level will now act as resistance as price fluctuates through the $9-$9.5k price channel. Bitcoin reaches a red 9 tomorrow. In sequential theory, red 9’s can provide a good opportunity to catch a falling knife, however, it’s a risky trade considering Bitcoin’s recent price action. A drop to $8.5k is just as likely as a retest of $10k. Therefore, Bitcoin is in a no trade zone. If you profited off of a short trade, today would be an ideal opportunity to take profit.