Crypto Analysis Report 4-13-18 BITCOIN...Takes Out Sellers At $8000, NOW WHAT???

Yesterday was reminiscent of December where the price shot up $1000 in one day or more than 10%. What was the reason, not to be rude, but quite frankly I don't care? The only thing that matters to me is price action on the charts. Prior to the move, Bitcoin was basing (yellow box) for 13 days, so a breakout was imminent.

The question everybody wants to know is if price will continue to go up?

1st clue: RSI broke the trend line (red line) on the daily chart from December.

2nd clue: lets see if the daily candle can close above the daily trend line, also established in January.

Lets zoom in on the 4 hr chart for a closer look to see where price may head next. The buyers eventually won the battle against the sellers at $8000 and took out that level at 4 AM this morning (eastern time). This level represents a trend violation on the 4 hr chart.

If the buyers can take out the sellers at $8500, the probability of price moving higher drastically increases. This level represents a trend termination on the 4 hr chart.

3rd clue: RSI is trending up on the 4 hr chart.

4th clue: the new floor has to be $6570, which was the origin of the strong move (green circle) up that took out the sellers at $8000.

The trade set up remains the same, let price take out the sellers at $8500 and buy Bitcoin on a pull back for a 1st target of $12k. Risk no more than 2% of your account on the trade.

This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.