Trading Bitcoin: Will $11k Hold?

Will $11k Hold?

All Bitcoin traders are wondering, “will $11k hold?” On Bitcoin’s daily chart above, the TD sequential indicator is on a red 4 of 9 candle. In yesterday’s article we noted, “after reaching a green 9, a bullish trend will typically enter a 1-4 red candle correction before resuming bullish price action. Furthermore, tomorrow we may reach a red 4 candle on the daily. At this hypothetical point, it will be wise to reevaluate the trend.” 

Today, price has given us a red 4 and it’s time to reevaluate the trend. Due to the current price action, the bears are gaining momentum and it’s looking as if sequential will continue the red countdown phase as opposed to a mere 1-4  red candle correction.

Additionally, Bitcoin is very close to the bullish Lucid SAR (blue x’s) at the $10.7k price point. If price falls below this level, the parabolic SAR will flip to a bearish reversal and price will likely see more downside action.

4 Hour

Above is Bitcoin’s 4 hour chart. As you can see, Bitcoin is currently on a red 3 of 9 candle. According to sequential theory, a short trade  was activated after last night’s red 2 candle closed below the previous red 1 candle. If you took this short at $11.3k, you would have a decent profit with Bitcoin currently trading at $11k with more downside potential incoming.

Conclusion

Will $11k hold? Based on sequential theory it is unlikely that $11k will hold.  Support remains at $10.7k. Current resistance stands at $11.3k and $11k if price should fall below it.