Bitcoin Update April 9th

[Boomerang Capital]

Price is currently being rejected by resistance and heading back down to important levels of support.

Resistances - Price is getting knocked back by a very intermediate zone of resistance at $7.1k, at the moment. This level is created by the interaction of price as resistance in the past. Above that is a stronger zone of resistance that lines up with a fib level at $7.2k, which we also saw acted as resistance previously.

Supports - Below current prices, we see a level of support at $6.9k, created by previous resistance, which has now turned to support.
In the event we drop below $6.9k the next zone of support left to hold up price is at $6.6k.
A break below $6.6k will likely send price down to a potential double bottom at $6k.

Indicators
Moving Averages - The weekly chart is still holding above the 50 MA. The weekly candle closes today and it will be a good sign for the bulls if price can remain above the 50 MA.

Ichimoku Cloud - Price is currently sitting on top of the 4H kijun indicator on the cloud, which until broken below will act as support. Overall, the higher time frame clouds remain bearish, indicating the trend is still likely to persist downwards.

Oscillators - The 1H RSI is currently exhibiting a bearish divergence, which in a bear trend is a strong argument for a potential reversal back downwards/end of this bounce.

Conclusion
Bitcoin looks to be losing strength during this current move upwards as we see price moving away rapidly from intermediate levels of resistance and a bearish divergence forming on the 1H chart.

$6.6k will be an important level to hold in order to create a reversal from this point upwards. In the even it does not hold, we will likely see a fall down to the previous February low of $6k. Below that level, price could drop rapidly to great levels of long term support around $5k. These levels in the long term will be looked upon as great buying opportunities.

If price does fall to $5k rapidly, sprinkling a portion of sidelined fiat back into Bitcoin sets you up for a great long term risk:reward play. The best way to play such an event is to scale in your buys in order to avoid missing the move, as well as creating the best average entry. This means spreading your buys out across multiple price levels, instead of making one large purchase at a single price. ~$5k has the type of support that could cause a true reversal in trend or act as a bottom, so buying there could result in maximum profits. Anything below that will be a gift, as we truly believe Bitcoin and crypto will experience massive returns, again, in 2018.

Sorry all but i have no idea how to post my charts.

Telegram & Twitter Handle: @BoomerCapital
Website: https://boomerangcapital.org/

[Saisher]

Good observation and analysis people should implement this I was tempted to buy one time when I should be spreading my buy order, I guess my emotions gets the best of me, people are still looking for those charts and hoping for the next big bull period which is very long to happen.

[angaper]

I am surprised that it is necessary to make this type of analysis so extensive to reach some conclusions that common sense frequently offers us: "there are possibilities that the price will go down, up or remain in the current range, but it is more likely that in the long term bitcoin will rise considerably".

Perhaps due to this type of analysis and forecasts many of us have stopped using Technical analysis as a reliable tool to deal with the volatility and uncertainty of this market, reducing our actions in these bearish times to buy and hold.

[cryptojohnn7]

A very good post. Very small details have been well analysed here. I would give a huge thumbs up to the post. It was really helpful.