Trading Bitcoin: Bulls Take Control

Bulls Take Control

Bulls take control as Bitcoin increases 5% today. On the daily chart above, Bitcoin is now on a green 8 of 9 candle. Tomorrow, Bitcoin will likely present us with a green 9. Therefore, a trend reversal may occur as well as a red 1-4 candle correction. However, Bitcoin has broken above key resistance levels and is now forming bullish support.

4 Hour

On the 4 hour chart above, Bitcoin’s sequential indicator has recently formed a green 2 above a green 1. Furthermore, this price action activates a long trade based on sequential theory. Additionally, the Lucid SAR (blue x’s) has served as a successful counter-indicator historically. As you can see, the Lucid SAR entered a bullish position below the green 2 candle 4 hours ago. Therefore, the sequential system and the Lucid SAR are presenting a confluence of bullish signals. Combining these indicators will likely give you a more dynamic perspective of the trend.

Gold Breaks Above $1500

After last week’s Fed announcement, US markets have decreased. In the midst of this uncertainty, Bitcoin and Gold have thrived. Gold is now on a green 5 of 9 candle on the daily chart above. Gold has the sequential setup trend line, the Lucid SAR, and the 50MA as support levels at roughly $1420. Overall, gold has been on an incredible run. For now, it appears the bullish momentum is likely to continue for the short-term future.

Conclusion

Bitcoin bulls take control as price continues to increase. A long trade was activated by the sequential indicator on the 4 hour chart. Look out for erratic price action as Bitcoin reaches a green 9 on the daily chart tomorrow. Overall, price has presented a confluence of bullish indicators between the 4 hour sequential indicator and the Lucid SAR. Support currently stands at $12k with the next highest resistance at $12.3k.