Topic: Bitcoin In Depth Analysis June 6 (Read 73 times)

Bounce occurring at support and 4H cloud kijun. Higher low posted if this level continues to hold.

Resistances & Supports.

Resistances
The $7.9-7.7k resistance level remains important to break above as price bounces back in that direction. A break above $7.8k would be a higher high in combination with the higher low, legitimizing the temporary uptrend.

Supports
The $7.5-7.4k support is holding for the moment, as we see a strong bounce off of this level.
Should price break below $7.4k we do have a support zone below from $7.2-6.9k, which will be a very important level to hold.

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

Symmetrical Triangle (remains intact): 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.
The 4H kijun has held for price and acted as support, for now, sending price back into the cloud. This now sets the target back to the 4H cloud edge at $7.9k.

Oscillators.
The 4H oscillators look to have reset and recrossed bullish out of the oversold zone, supporting the current bullish bounce and recovery. There are currently no divergences of note at the moment.

 
Conclusion
The bounce at support earlier today is very confidence inducing for the bulls, making a strong argument for a continued rally upwards. A break above $7.8k would validate the uptrend. A break below $6.9k would be a strong warning sign of lower prices to come in the future.



Twitter: @BoomerCapital
Web: boomerangcapital.org