Trading Bitcoin: Still Hovering at $9.2k

Still Hovering at $9.2k

Bitcoin has been consolidating after last week’s drastic price increase. Price is currently trading at $9.2k and the sequential indicator is on a green 2 candle. In sequential theory, a green 2 closing above the previous green 1 is an indication to place a long trade. However, our current green 2 candle has yet to close above the previous green 1 candle. Furthermore, price is still trading above the 200MA (orange) which has been acting as support for the bulls. If Bitcoin can close above $9.4k today, price action will likely be bullish throughout the rest of the week.

4 Hour

Bitcoin’s sequential indicator is on a green 2 which has closed above the previous green 1. Therefore, sequential theory has activated a long trade on a 4 hour timeframe. Additionally, price is still trading above the 50MA (grey) which has been a key support level after forming the golden cross.

Weekly

Today is Monday and we have a new weekly candle. On the weekly chart above, sequential has formed a green 3 candle. However, Bitcoin has yet to create a higher high during the current green sequential count. As of now, the weekly chart remains neutral – bullish.

Conclusion

The daily, 4 hour, and weekly timeframes are all presenting neutral – bullish signals. Price needs to hold above the $9k support level for the bulls to sustain their current momentum during this consolidation period. If price falls below $9k, look for an immediate retest of the $8.7k support level. For the bulls, the next area of critical resistance is $9.5k and $10k.