Trading Bitcoin: Bears Push Us Down to $7.1k

Bitcoin Crashes On Hourly 9

On the 1 hour chart above you can see Bitcoin has fallen on a sequential green 9 candle. Not much has changed since yesterday as price continues to hover around the $7.2k price level.

Daily

Yesterday we mentioned that Bitcoin was on a red 2 on the daily chart. In sequential theory, a red 2 which closes below the previous red 1 is a signal to place a short trade. Currently, that trade is sitting with a decent profit as Bitcoin trades at $7.1k. Downward bearish momentum continues as the sequential indicator remains on a red 3. If the bears break below $7k, then the next support level would be the bottom of the downward parallel channel at roughly $6.3k.

Conclusion

Bitcoin is still traveling in the downward parallel channel. Critical support remains at $7k. If $7k is purged a retest of $6.3k seems likely. Critical resistance remains at $7.5k, $7.7k, and $8k.