Trading Bitcoin: Daily Buy on a Green 2?

Daily Buy on a Green 2?

Bitcoin underwent a price flip off of a red 9 two days ago. After rebounding to $10k, Bitcoin is now on a green 2 of 9 candle on the daily chart above. If Bitcoin increases and closes above yesterday’s green 1 candle, that is an indication to place a long trade on a daily timeframe. However, Bitcoin still faces harsh resistance at $10.6-10.7k. In order for the bulls to regain momentum, Bitcoin must break above the previous lower high at $11k. Until Bitcoin can achieve this, we’ll remain in a bearish posture.

4 Hour

Bitcoin recently topped on a green 9 on the 4 hour chart. In Monday’s article we noted, the sequential indicator on the 4 hour chart above is currently on a green 2 above a green 1. If this 2 candle closes at or above its current price, that is an indication to place a long trade on a 4 hour time frame. If you are short from a daily or weekly timeframe, it’s probably time to get flat. 

If you decided to take this trade you would have entered at roughly $9.5k and would have exited on the green 9 at a price of roughly $10k.

Cryptocurrency News

It’s BCash’s second birthday today. On August 17th, 2017 (only 16 days old at the time) Bitcoin Cash was worth $940 per coin. Currently, Bitcoin Cash is trading at a price of $342. Many other altcoins have had a similar fate.

Conclusion

If Bitcoin closes on a green 2 above a green 1 on the daily chart, that is an indication to place a long trade. However, Bitcoin faces heavy resistance around $10.7k and $11k. Until the bulls can break above resistance at $11k, the posture of the trend remains bearish.