Trading Bitcoin: Didn’t Get the 9, Back in the No Trade Zone

Didn’t Get the 9, Back in the No Trade Zone

Last week, Bitcoin was lining up for a serious decline. Instead, price experienced a small rally and currently Bitcoin is back in the no trade zone. On the daily chart above, Bitcoin did not reach a red 9 like we were expecting. Currently, the sequential indicator is on a green 2 candle. If we get another green day tomorrow the bulls may be able to gather enough momentum to retest resistance at $8.8k. For now, the trend remains neutral as price fluctuates in the no trade zone.

4 Hour

Yesterday, sequential gave us a green 2 candle which cut straight through the moving averages like a hot knife through butter. Now sequential is telling us the trend is neutral. However, if we get a green 2 candle which closes above our current green 1 candle, look for a possible bullish retest into the $8.8k resistance level.

Weekly

In last week’s analysis, we were expecting price to give us a red 9 on the weekly chart above. Instead, Bitcoin has undergone a price flip to a green 1. If next week’s candle is a green 2 above our current green 1, that is a bullish indication on the macro trend. At that point, the bulls may be able to retest resistance at the bottom of the descending triangle at $9.2k. Additionally, if this price action were to occur, it may be appropriate to start discussing a 2nd bottom for the 2020 bull market. Above all, Bitcoin has gone sideways for the past month but sooner or later price has to make a definite move.

Conclusion

While we were expecting a breakdown to occur, price is back in the no trade zone. As of now, the trend is neutral and price is looking to make a definite move out of the no trade zone. Next week will be a critical week in terms of price action.