Bitcoin | Proceed with Caution
Updated
Bitcoin has been on a beautiful Bull-run from $6200 since the 15th of July. As of today, we are topping around $8200. That's a beautiful profit if you were/ are in the trade.
THE 9-DAY CHART:
I'm showing you the '9-Day' chart to present my case for Bitcoin traders and hodlers to proceed with caution.
I'm not a financial advisor, but looking at the technical analysis of the '9-Day' chart for a moment- You'll see the last bull-run in April reversed its trend on the closing of the '3' candle. And the bull-run back in February reversed its trend earlier on the closing of the '2' candle.
THE DAILY CHART:
I would consider this past bull run, as seen in the following picture, as an ideal trade. This 'daily' chart of this past bull-run is a good example of how a trend usually contains 9 candle's, according to TD-Sequential system, then pulls back to reconsolidate- before reversing or continuing its trend.
THE WEEKLY CHART:
The weekly chart, as seen in this following picture, is giving us a Green '2' ABOVE a Green '1'. And this is exactly what a "Bull", like myself, wants to see!
OVERALL:
I'm going to be very cautious over the next few days with Bitcoin. I could see a potential reversal coming soon if we can't break out of the resistance zone of $8175. If the '2' candle that we are currently on can close above the resistance point (in blue) around $8200-- The "bull-run" trend could continue.
Happy Trading fellow Hodlers!
THE 9-DAY CHART:
I'm showing you the '9-Day' chart to present my case for Bitcoin traders and hodlers to proceed with caution.
I'm not a financial advisor, but looking at the technical analysis of the '9-Day' chart for a moment- You'll see the last bull-run in April reversed its trend on the closing of the '3' candle. And the bull-run back in February reversed its trend earlier on the closing of the '2' candle.
THE DAILY CHART:
I would consider this past bull run, as seen in the following picture, as an ideal trade. This 'daily' chart of this past bull-run is a good example of how a trend usually contains 9 candle's, according to TD-Sequential system, then pulls back to reconsolidate- before reversing or continuing its trend.
THE WEEKLY CHART:
The weekly chart, as seen in this following picture, is giving us a Green '2' ABOVE a Green '1'. And this is exactly what a "Bull", like myself, wants to see!
OVERALL:
I'm going to be very cautious over the next few days with Bitcoin. I could see a potential reversal coming soon if we can't break out of the resistance zone of $8175. If the '2' candle that we are currently on can close above the resistance point (in blue) around $8200-- The "bull-run" trend could continue.
Happy Trading fellow Hodlers!
Note
Bitcoin's Daily chart is giving us a '2' of '9' candle, trading below the previous '1' candle- Setting us up for what looks to be a new "Bearish" trend, but could this just be a trap??I'm also using the Relative Strength Index (RSI). The RSI is a momentum oscillator that measures the speed and change of price movements. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.
As you can see on the daily chart below, the RSI was recently signaling Bitcoin as "Oversold".
Bull's and Bear's alike, be Cautious. I could easily see Bitcoin decline back around $5400 or lower.
**I am not a financial advisor. I am long on Bitcoin.
Note
BULLS MAKE WAY FOR THE BEARS:Using the RSI, TD-Sequentials, and Moving Averages- My call for a reversal trend proved to be right.
We are currently on a red '2' of '9' candle on the Daily chart.
It's my belief Bitcoin will retest the major support line (in pink) at or around $7100. Good luck to all!
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