Cryptocurrency
Trading Bitcoin: Bulls Dominate, Price Back Above $9k
Daily On the daily chart above, Bitcoin has now surged above $9k to a high of $9.1k. Currently the sequential indicator is on a green 2. In sequential theory, a green 2 which closes above the previous green 1 signals a long trade. Additionally, the Lucid SAR (blue x’s) has now shifted into a bullish […]
Daily
On the daily chart above, Bitcoin has now surged above $9k to a high of $9.1k. Currently the sequential indicator is on a green 2. In sequential theory, a green 2 which closes above the previous green 1 signals a long trade. Additionally, the Lucid SAR (blue x’s) has now shifted into a bullish support position. Sometimes we like to use the sequential indicator in tandem with the Lucid SAR. However, the most significant indicator is likely the fact price is about to close above the 200MA (orange). A further consolidation above the $9k support level would be very bullish for the macro trend.
4 Hour
Bitcoin looks profoundly overextended on the 4 hour chart. As long as price can remain above $9k and consolidate, the bulls will have a good shot at breaking above critical resistance at $9.5k. Being said, there are traders who have profited significantly over the course of the last week, therefore, there’s likely to be profit taking and a tentative pullback.
BTC/USD Shorts
From the chart above, you can see the shorts have been stacking up throughout the previous weeks. In fact, the last time the market had this many open short trades, price bottomed at $6.5k. We’ll still have to see whether or not price continues to go up, further leading to an eventual short squeeze.
Conclusion
Bitcoin is on its way to closing above the daily 200MA (orange), a significantly bullish signal considering how devastating the 200MA has been as a resistance level. Look for a consolidation above $9k to lead to further bullish price action. Critical support remains at $8.7k and $9k while critical resistance stands at $9.5k.