Trading Bitcoin: Drop to $9.1k, Is the Rally Over?

Daily

After dropping to $9.1k, Bitcoin has reached a sequential red 2 on the daily chart above. In sequential theory, a red 2 which closes below the previous red 1 is an indication to place a short trade. However, with the 200MA (orange) providing critical support at $8.9k, the risk reward profile on a potential short is not enough for us to have conviction in a short trade.

Conclusion

Resistance remains at $9.5k, while critical support remains at $8.9k. A potential drop to this support level may be an optimal buy the dip opportunity for anyone holding into 2021-2022. As of now, Bitcoin remains in a no trade zone.