Bitcoin Daily Update.
Sideways movement after the high volatility move yesterday.
Resistances & Supports.
Resistances - Same levels as yesterday.
A bounce here would set our sights on an intermediate resistance at $7.0k created by the previous low.
Should price break $7k we will look at the resistance from $7.7-7.9k as our next major target.
Supports - Same levels as yesterday.
The next support zone is derived from the previous local bottom at $6.7-6.4k. This zone also lines up with a fib level drawn all the way back from the correction to $3k.
A break below $6.4k will likely see price fall to new lows. A very strong support zone for this scenario would be at $5.8-5.5k.
Longterm, the previous top at $5k is an obvious buy level, with added support down below it to $4.7k.
Ichimoku Cloud.
The 1H cloud is now showing a tenkan kijun disequilibrium, which will likely result in a reactionary move, causing these two indicators to be closer to one another. In this case this move would be to the upside, giving the probability of a retrace upwards added weight.
Oscillators.
What we do see on the 1H RSI is a hidden bearish divergence, which suggests continued downside. Although, this is a lower time frame divergence and nothing that would cause an extreme move.
Conclusion
Just as low volatility precedes high volatility, the reverse can be said as well. We see that occurring at the moment as price rests following the high energy move we saw yesterday. It is likely we see a retrace (bounce) upwards to stabilize the price action and capture any missed volatility from the large liquidation event yesterday which left a gap in market structure.
Twitter: @BoomerCapital
Web: boomerangcapital.org
The market has been struggling hard for the past few days, you can see that bitcoin prices are beginning to recover slightly and that has made altcoin a very strong recovery. At present, bitcoin prices are at $ 6800 and are still rising slightly, according to my analysis. This is just a correction before the bitcoin reduction.
