Topic: Bitcoin In Depth Analysis May 31 (Read 120 times)

Bulls taking a natural breather after yesterday's large move.
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.

Classical Chart Patterns
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 $6.8k this pattern will be resolved to the downside and the measure rule sets us well beneath the current bottom at $6k.

Ichimoku Cloud
The 2H cloud is now acting as resistance. Though, at the moment the tenkan and kijun are in a cluster which may act as support for now and send price back upwards to retest the cloud. We also see a bullish TK cross on the 2H cloud (tenkan/blue line over the kijun/red line), which gives the lower time frame a bullish bias.

Oscillators
The vortex indicator and RSI are shaping up to look very similar to the reversal we saw at $6.4k. We had a nice rise from the RSI yesterday, allowing space to drop should we fall further into support, setting up a potential bullish divergence on the daily which would be a strong buy signal.

 
Conclusion
After the strong move yesterday, it is very natural for us to retrace some of the move, markets move in peaks and valleys on all time frames.

A bit of sideways around this support to allow big players to accumulate BTC at a cheap price before moving upwards, similar to the situation we saw at $6.4k would be of no surprise.

A break above the $7.9k resistance block would solidify the short term uptrend. A break below the $6.8k level of support would signal further downside to come and reason to believe we would see new lows below the recent one at $6.4k


Twitter: @BoomerCapital
Web: boomerangcapital.org