Cryptocurrency
Trading Bitcoin: Back Above $7k, Now What?
Now What? Bitcoin has bounced from the $6.5k support level and is now trading at roughly $7.1k. Currently, price is on a green 2 of 9 candle. However, the majority of the move occurred during the green 1 candle. Therefore, we prefer not to enter a long trade on this kind of green 2 candle. […]
Now What?
Bitcoin has bounced from the $6.5k support level and is now trading at roughly $7.1k. Currently, price is on a green 2 of 9 candle. However, the majority of the move occurred during the green 1 candle. Therefore, we prefer not to enter a long trade on this kind of green 2 candle. As of now, we have a temporary bottom at $6.5k and we are in the midst of a reaction rally.
4 Hour
The 4 hour chart above is relatively neutral. Bitcoin’s RSI is nearing an overbought level, however, the trend still has plenty of upside potential. Unfortunately, price still faces heavy resistance at $7.5k and $8k. As of now, we can’t tell whether current price action is the formation of a potential bottom, or merely a reaction rally in the midst of profound bearish momentum.
Conclusion
Price stands at $7.1k. Current support stands at $7k while resistance remains at $7.5k. The bulls must remain above $7k or else a retest of the $6.5k support level is likely.