Trading Bitcoin: Top at $12.3k?

Top at $12.3k?

Top at $12.3k? After a mild rejection at $12.3k earlier today, Bitcoin is now trading at a price of $11.7k. TD Sequential indicator is currently on a green 7 of 9 candle on the daily chart above. While price may decrease today slightly, sequential is telling us the trend will likely remain bullish until we reach a green 9 candle in 2 days. Also, Bitcoin still has room to the upside considering the daily RSI is currently at 75. While an RSI above 80 is considered overbought, in the past Bitcoin has pushed into the upper 80s before undergoing a correction.

4 Hour

After reaching a green 9, Bitcoin is now on a red 1 candle on the 4 hour chart above. As you can see, Bitcoin’s RSI was overextended at 80 and has now declined to 65. If price forms a red 2 below a red 1, that is an indication to take a short trade on a 4 hour time frame.

Conclusion

Top at $12.3k? The order books on various exchanges have gotten thicker as Bitcoin has broken past $11k. Now that there is more liquidity in the market it may be an ideal situation for a whale to take large profits without tanking the market. If a whale was to take profit at a price with a thinner order book at say $9.5k, the market would be much more susceptible to a harsh correction. Therefore, we may see additional profit taking from large players as more smaller retail investors enter the market. Resistance remains at $12.3k with critical support at $9.5k. The most critical resistance level for the bulls is the 0.618 fibonacci level at $14k. If the bulls can break above this resistance level, new all-time highs will be in sight.

Disclaimer: The author of the article hodls Bitcoin.