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July 05, 2018, 10:17:12 PM |
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Choppy waters as BTC sets up for a strong move.
Resistances & Supports.
Resistances - Same levels as yesterday
Zooming out, we see price struggled to break above the zone at $6.9k we highlighted previous in the week. This zone remains the pivotal level for bulls to break above.
Looking ahead, a break above $6.9k would set sights on the next macro level at $7.7k.
Supports - Same levels as yesterday
As price moves with gusto towards new lows, it seems likely we break below the February bottom at $6k. Overlapping multiple time frame levels highlights the support from $6k-5.8k, which will be a zone to set some bids in for a bounce as price tumbles down. Should $5.8k fail to hold, there is a nice set of equal lows at the $5.4k mark which will act as support.
In the event price finds its way all the way down to the $5k level, buying in the long term support zone from $5-4.7k will be a good bet for at least a strong bounce.
Ichimoku Cloud.
Price is officially in a bullish trend based on 4H cloud metrics. There is a confluence of support from the cloud metrics (red line/kijun and cloud edge) with the horizontal level price range from $6350-6.3k.
Oscillators.
The 4H RSI is showing a potential hidden bullish divergence in the make at the moment, with a break above 68 RSI. A hidden divergence implies continuation, in this case would be a continuation of the bullish movement which preceded this setup.
Conclusion.
BTC has experienced rather low volatility over the past few days, chopping around in the higher $6000s. As we have seen in the past, low volatility always precedes higher energy moves, which means it is time to pay attention. A break above $6.9k would be majorly bullish and signify a bullish trend with the next test being around $7.8k. Strong support remains below at $6.3k.
Twitter: @BoomerCapital
Web: boomerangcapital.org
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