Trading Bitcoin: Bulls are Back! $8k Incoming?

$8k Incoming?

On the daily chart above, it appears we’ve bottomed and price has flipped to a green sequence. We are currently on a green 3 of 9 candle. In sequential theory, when a green 3 candle closes above the previous green 1 candle, that is an indication to place a long trade. Additionally, the RSI is still in a neutral level, therefore, the bulls still have a lot of potential momentum to the upside.

4 Hour

The 4 hour chart above is nearing overbought territory, however, there is still potential for more upside price action. On Tuesday, the previous green 2 candle (closing above the previous green 1) was a bullish indication on the four hour chart. We highlighted this bullish potential in a tweet.

Conclusion

For now, bullish momentum continues and the next resistance level for the bulls is $8k. Current support remains at $7.2k. Overall, price is rebounding from a profoundly oversold level. If the current bullish momentum can be sustained all the way to $10k, $6.7k may officially be the next higher low in the macro bull market.