Cryptocurrency
Trading Bitcoin: Potential Correction Tomorrow?
Daily On the daily chart above, Bitcoin has reached a green 8 of 9 candle. Congrats to any of the traders who have profited off of the recent bullish move. However, tomorrow’s trading day may get interesting. The primary reason trading may be interesting is because Bitcoin reaches a green 9 tomorrow on the sequential […]
Daily
On the daily chart above, Bitcoin has reached a green 8 of 9 candle. Congrats to any of the traders who have profited off of the recent bullish move. However, tomorrow’s trading day may get interesting.
The primary reason trading may be interesting is because Bitcoin reaches a green 9 tomorrow on the sequential indicator. In sequential theory, a 9 indicates a potential reversal in the trend or that trading is going to be interesting during that 24hr period. For instance, if Bitcoin surges to $10.5k by the end of the day, it is more likely we experience a small sell off as a result of profit taking. With the current bullish uptrend, we have the potential to see profit taking tomorrow as a result of the green sequential 9. This is compounded by the fact that Bitcoin’s RSI has just reached 70 and is in overbought territory.
Alt Season Is Upon Us!
Above is the ETH/BTC chart and you can see Ethereum has outperformed Bitcoin by nearly 50% in the last month! While Bitcoin has been experiencing bullish activity, the altcoin speculators are out in full force. However, the chart above would suggest we are due for a pullback.
Conclusion
Depending on how the green 9 effects the market, trading is likely to be interesting tomorrow. A small sell-off may occur tomorrow which may provide an opportunity to buy the dip. Stay sharp on the daily 9 and never underestimate the power of Bitcoin FOMO.