Trading Bitcoin: Bearish Confirmation Incoming?

Daily

On the daily chart above, Bitcoin has formed a red 2 closing below the previous red 1. This is a signal to short based on the TD Sequential system. However, Bitcoin’s RSI is already in an overbought territory and therefore price doesn’t have to decrease profoundly to enter a deeply oversold region.

4 Hour

On the 4 hour chart above, Bitcoin has recently finished a red sequence and is about to enter another one. Furthermore, it is notable that Bitcoin’s 4 hour is in a drastically oversold level. Furthermore, it is difficult for price to decrease any further than it already is without a tentative reaction rally.

Weekly

On the weekly chart, Bitcoin is on a red 4 of 9 candle. Also, we still have room to move to the downside on a weekly timeframe. Furthermore, Bitcoin’s weekly RSI is in a bearish divergence that has yet to break to the upside. Additionally, Bitcoin is still trending downward in the parallel channel.

Conclusion

Sequential theory has activated a short trade on the daily timeframe. Bitcoin is still trending downward in the parallel channel and until price can break out, the trend is overwhelmingly bearish. Support level trend lines on the weekly chart must hold or else a substantial decline in price is likely.

Disclaimer: The author of the article hodls Bitcoin.