Price creating a set of higher lows with lower highs above, making this a consolidation zone for the time being. Whether we break up or down outside of this zone is yet to be determined.
Price Action Levels
Resistances - There is a small zone of intermediate resistance at $6.9k. Above that we see the strong level of resistance created by a fib level and the previous price action at $7.2k.
Supports - There is a chunky zone of support at $6.6k, of which held price up for quite some time. As it continues to get tested it will lose strength as buyers at that level begin to exhaust.
A break below $6.6k will likely send price down to a potential double bottom at $6k.
Indicators
Moving Averages - The weekly chart continues to hold above the 50 MA. The daily and below time frames remain bearish in terms of MA indicators.
Ichimoku Cloud - The 4H tenkan and kijun indicators from the cloud are directly above head around $6.9k & $7k. These will likely act as resistance on the way up, coupled with the confluence of the $6.9k price action level of resistance.
Oscillators - On the 1D we have an interesting situation; we see a bullish divergence at the moment, which is usually very telling during high time frames. But, when looking left, we see a very similar setup to the one we have now, where price failed to make a W-bottom, during a period of bullish divergence and later fell rapidly. As stated in the past, we must take bearish divergences in bull trends with less conviction, and in this case, bullish divergences in bear trends with less conviction as well. Still, it is something to keep an eye on and an argument for a reversal at this level upwards.
Conclusion - Price is in an interesting spot. We see a large bullish divergence on the ever important 1D chart, but also have seen that signal fail recently in the past. We are posting higher lows, but also have accompanying lower highs, which pegs this immediate action as neither bullish or bearish, but rather consolidation. A wise trend follower would lean towards the way of the trend and expect this consolidation in price to lead to continuation of the bearish trend. A break above $7.5k would be a higher high and give the bulls the upper hand.
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