Topic: Bitcoin In Depth Analysis June 5 (Read 141 times)

Hope so. I have seen you were right at breaking a strong resistance of 7.7k yesterday. Unexpected price dump occured last night to 7.4k and I was liquidated from my trading. Though oscillators told me it will gonna dump seriously, and I still doubt my ta because it played around at oversold area. I can smell also the bullish is coming. That's what i'm waiting for.

Rejection at resistance occurred, price now at a high probability bounce/reversal level of support.

Resistances & Supports
Resistances - Same resistances levels as yesterday.
Now that price has broken above $7.5k we can target the next level at $7.7-7.9k which has caused strong price reaction in the past.  A break above $7.5k resistance now flips this zone to support.

Supports - Same resistances levels as yesterday.
Should price fall below the intermediate support zone at $7.5k the support zone below from $7.2-6.9k remains intact.

Classical Chart Patterns.
Inverse head & shoulders pattern: A break below the right shoulder would invalidate this pattern. The bottom of the right shoulder lines up roughly around $7.3k.

Symmetrical Triangle: The higher time frame pattern symmetrical triangle remains valid as long price does not move below $6.9k. A break of either trendline creating this pattern will be foretelling of the medium term price action.

Ichimoku Cloud.
Price has fallen out of the 4H cloud and below the tenkan (blue line), leaving the last level of support from the cloud metrics to be at the kijun (red line). This price level is in line with our horizontal price zone we have mapped out at $7.4k making the current price a highly confluent level of support.

Oscillators
On the 4H we see that the RSI has posted lower lows while the RSI has remained above the last low, creating a hidden bullish divergence. A hidden divergence implies continuation of the current trend while a normal divergence implies a reversal. In this case, the hidden bullish divergence is signaling a case for continuation of the move upwards from $7.0k.

 
Conclusion
Price was rejected at the mapped out resistance level created by the .618 fib and $7.9-7.7k horizontal resistance level as expected. The current price action hints at a bounce back upwards as a hidden bullish divergence builds at the support level from $7.5-7.4k. A break above the current high at $7.8k would be very bullish and signify a definite uptrend composed of a higher low and higher high


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