Trading Bitcoin: Green 2 above a Green 1

Green 2 above a Green 1

Throughout this newsletter we have studied the TD Sequential indicator in-depth. Whenever the indicator gives you a green 2 candle which closes above the previous green 1 candle, that is an indication to take a long trade. On the daily chart above, Bitcoin is on a green 2 following a green 1. Therefore, sequential is telling you to take a long trade with a stop loss.

4 Hour

Bitcoin recently topped on a price flip 9 candle. Currently, we going through a red 1 to 4 candle correction. We are already 3 candles into the correction, therefore, price may flip within the next 4 hours.

Cryptocurrency News

The price of TRON decreased drastically yesterday because of a rumored police raid on their Beijing headquarters. In a company post the TRON foundation claimed, “the police arrived to protect the office from people who were deceived by the so-called ‘Wave Field Super Community’, a group that used the Chinese-language version of TRON’s name to defraud investors scheme. The victims had been promised high rates of return on their investments in the name of TRON, BitTorrent and uTorrent.”

After the incident, a TRON transaction amounting to $23m was sent to an exchange address which scared traders. Nervous that a whale was about to dump their coins, traders quickly sold TRON.

Conclusion

Bitcoin is presenting bullish signals. A green 2 going above a green 1 is confirmation to place a long trade with a stop loss. The next resistance level is at the previous high of $14k. Current support is at $12k with the strongest support being the 0.382 fibonacci level at $9.5k.