Cryptocurrency
Trading Bitcoin: Bulls Back to $9.4k, $10k EOW?
4 Hour While Bitcoin pulled back to $9.1k yesterday, we consider this a healthy pullback. Currently, price is rebounding and trading at a price of $9.4k. Additionally, Bitcoin is on a green 4 of 9 candle on the 4 hour chart above. In sequential theory, a green 2 which closes above the previous 1 is […]
4 Hour
While Bitcoin pulled back to $9.1k yesterday, we consider this a healthy pullback. Currently, price is rebounding and trading at a price of $9.4k. Additionally, Bitcoin is on a green 4 of 9 candle on the 4 hour chart above. In sequential theory, a green 2 which closes above the previous 1 is an indication to place a long trade. As you can see above, this hypothetical trade would have gifted a small profit. It is also worth noting that Bitcoin broke above the 50MA (grey) with virtually zero resistance. Now we’re looking for a retest of the 0.618 fibonacci level at $9.5k.
Daily
In yesterday’s analysis, we noted that a red 2 which closes below the previous red 1 is an indication to place a short trade. However, we didn’t have enough conviction to place this trade because the risk – reward profile was not good enough. This is a result of the 200MA (orange) serving as strong support at $8.9k.
On the daily chart above, we have undergone a price flip to a green 1 and are now starting a green sequence. From a bullish perspective, tomorrow we are looking for a daily green 2 candle which closes above our current green 1 candle. If this setup phase occurs, Bitcoin will have a decent probability of retesting $10k very soon.
Conclusion
After dropping to $9.1k, Bitcoin is retesting resistance at $9.5k. Critical support remains at $8.9k. Look for a daily green 2 on sequential tomorrow for further bullish confirmation.