Trading Bitcoin: Will $8k Hold?

Will $8k Hold?

Bitcoin finally broke below support yesterday and price is now trading at $8k. On the daily chart above, Bitcoin has reached a red 7 of 9 candle. Therefore, we will likely reach a red 9 in two days. At this point, we will have to re-evaluate the trend to determine whether price will make a large move downward or possibly price flip into a green 1. Overall, when a 9 candle comes, a large move is likely to occur in either direction.

4 Hour

On the 4 hour chart above, Bitcoin has now reached a red 9 similar to where the daily sequential indicator has been traveling. As you can see, we’ve received our first green candle within the last 24 hours. A price flip after the 9 is possible. Nevertheless, it looks like a bearish continuation.

Conclusion

Bearish continuation is likely to continue now that key support at $8.5k has been lost. Typically, markets will go down faster than they go up, so a decline to $7.2k is probable. In order for Bitcoin to be bullish, price must break above the 50MA on the daily chart. Until then, price action remains bearish.

Disclaimer: The author of the article hodls Bitcoin.