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May 28, 2018, 09:26:12 PM |
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Price very close to a very important support zone now, if a bounce is to come and bulls want to reverse, these levels are the place to do so.
Resistances & Supports.
Resistances - Yesterday's resistance levels still in place.
Now that price has fallen below the intermediate level at $7.5-7.4k, this will act as resistance on the way back up. Above $7.5k we will begin to set our sights on the higher levels such as $7.9-7.7k.
Supports - Yesterday's support levels still in place.
At the moment we are coming down to a very important support zone from $7.2-6.9k. This is an important level to hold due to it being an important fib level and the diagonal trendline support for the symmetrical triangle pattern in play.
The larger time frame symmetrical triangle is still holding up as price nears the supporting trendline. Should price break and close on the daily below $6.7k this pattern will be resolved to the downside and the measure rule sets us well beneath the current bottom at $6k.
Ichimoku Cloud
The 1W kijun has now crossed above the tenkan, meaning the recent price action on the weekly chart is more bearish than it has been over the long haul, insinuating more bearish price action will continue. Should price move upwards from here, we will have a bullish recross on the weekly which would signal a great entry for those without a BTC position.
Oscillators
The 1D RSI has officially entered the historic zone that has signaled an oversold BTC and led to reversals in the past. Although past performance is not indicative of future price action this is a fairly strong signal and not one to take lightly.
Conclusion
Price continues to slow bleed down towards a strong support created by a plethora of price levels, fib zones, and chart patterns. Scaling in buys down to $6.8k sets one up for a decent risk:reward ratio with a stop loss below $6.7k in case price blows through the support.
To my American mates. Have a safe and meaningful Memorial Day
Twitter: @BoomerCapital
Web: boomerangcapital.org
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