Trading Bitcoin: Consolidation Continues – China Scraps Ban on Crypto Mining

Consolidation Bullish or Bearish?

On the daily chart above, Bitcoin has reached a green 4 of 9 candle on the sequential indicator. Therefore, price action has potentially 5 more days of upside before a minor correction. Also, the 200MA (orange) is still acting as beautiful support as our current consolidation period continues. Also, the Lucid SAR (blue x) is still in a bullish support position below price. As price continues to consolidate above the 200MA, Bitcoin remains neutral – bullish on the daily chart.

4 Hour

On the 4 hour chart above, price has continued to consolidate above the 50MA (grey). Within the last 4 hours, the sequential indicator has flipped to a green 1. The Lucid SAR is still in a bullish position below price. In a perfect world, the bulls will give us a green 2 candle, closing above our current green 1 candle. This would be an indication to place a long trade on the 4 hour timeframe. As long as Bitcoin remains above the 50MA (grey), price is neutral – bullish on the 4 hour chart.

Ethereum

Ethereum is hanging in there on the daily chart above. A long trade was activated yesterday when the green 2 candle closed above the previous green 1 candle. The 50MA (grey) has been serving as support for the past two weeks and has been holding strong. According to sequential theory, Ethereum is bullish throughout the rest of the week. However, if Bitcoin decreases for an unknown reason, Ethereum will likely decrease as well.

Litecoin

Litecoin is acting very similarly to Ethereum on the daily chart above. Litecoin is on a green 4 of 9 candle, therefore, sequential is telling us bullish momentum is likely to continue. Support from the 50MA (grey) continues to hold. As of now, Litecoin is neutral – bullish.

Crypto Fear and Greed Index

The crypto fear and greed index is currently at 53 and in neutral territory. The fear and greed index has been a reliable sentiment calculator for the past bear market cycle. Additionally, it is clear that traders are still unsure where Bitcoin will go next. Therefore, price action remains neutral-bullish.

China Scraps Crypto Mining Ban

Blockstream CSO Samson Mow commented on Nov. 6, mining is no longer featured on a list of industries Beijing considers undesirable. This comes as no suprise considering how bullish China has been on digitizing their yuan. Overall, this is likely bullish for Bitcoin.

Conclusion

Bitcoin continues to consolidate above the 200MA (orange) on the daily. Across the daily, weekly, and 4 hour timeframes, Bitcoin is neutral-bullish. If resistance at $9.5k is broken, look for a retest of resistance at $10k. If $9k is purged, look for a retest of $8.7k support.

Disclaimer: The author of the article hodls Bitcoin.