Trading Bitcoin: Rejected at $11k, $9.5k Incoming?

Rejected at $11k, $9.5k Incoming?

After being rejected at $11k, Bitcoin fell to a low of roughly $10.4k and is now trading at $10.5k. On the daily chart above, Bitcoin’s sequential indicator is on a red 5 of 9 candle. Furthermore, sequential is telling us the current downward trend will (probably) last 4 more days. Additionally, the parabolic Lucid SAR (blue x) is acting as resistance as the trend remains in a bearish posture. Also, price has now dropped below the 50MA (gray) which, in theory, will now act as resistance if a retest of $11k should occur. As of now, the daily chart is presenting significant bearish indicators which create a price target of $9.5k. This price also aligns with the 0.382 fibonacci support level and the sequential setup trend line.

4 Hour

Price has fallen below all three moving averages on the 4 hour chart above. TD sequential has reached a red 9 candle which is indicative of a trend reversal. However, Bitcoin’s daily chart is significantly bearish, therefore, if a reaction rally should occur it would probably be short-lived. Price may experience a small reaction rally within the next 4 hours, but it will likely be followed by further downward price action.

Cryptocurrency News

US Investors Sue Ripple Over XRP: The SEC has released new guidance which gives ammo to investors looking to sue Ripple for issuing XRP as an unregistered security. Ripple is one of the most obvious cases of fraud throughout the cryptocurrency space. When Ripple/XRP was created, 60% of the total circulating supply was held in an escrow account owned by Ripple labs. After massing immense wealth from the creation of XRP, Ripple labs sold billions of dollars worth of XRP from their escrow account to fund company operations and expenses. Essentially, Ripple is dumping their XRP on retail investors. As a result, XRP has performed horribly relative to Bitcoin and the rest of the cryptocurrency market. You heard it here first, Ripple will be the Enron of the cryptocurrency industry.

Conclusion

After breaking below support at $11k, Bitcoin has been overwhelmed by bearish momentum. Current indicators are presenting bearish signals which yield a target of $9.5k. Critical support remains at $9.5k while current resistance stands at $11k.

Disclaimer: The author of the article hodls Bitcoin.