The $6.6k zone of support held and sent price upwards to test resistance in the low $7000s.
Resistances - Price is making an attempt at breaking the weaker, intermediate resistance at $7k.
Above this level we see a stronger level created by previous price action and a fib level at $7.2k, this level will be crucial to break and hold above.
Supports - Below current prices we have a zone of support at $6.6k that held over the week.
Below $6.6k the level that held during the last capitulation event at $6k should provide a bounce/zone of support.
Indicators
Moving Averages - The weekly chart is still holding above the 50 MA. The weekly candle closes tomorrow (Sunday) and it will be a good sign for the bulls if price can remain above the 50 MA.
Ichimoku Cloud - The 4H tenkan is now below price, meaning it will act as support on the way down. Above price, though, we see the 4H kijun around $7.2k, which is confluent with our price action levels of resistance, making this an even more important level to break above.
Oscillators - A look at the larger time frame RSI on the 1D shows us a very similar situation to the last selling climax that got us down to $6k. The 1D showed a bullish divergence (Price making lower lows, RSI making higher lows) that never ended up playing out. Past performance does not always indicate future results so we will watch this bull div and see if it can send price higher. Zooming on to the 4H stoch RSI we see that price is already into overbought territory, which is a bit concerning and will likely cause price to rest at these levels or fall lower.
Conclusion - Bitcoin has found some strength off of the $6.6k levels of support that we outlined throughout the week. Although this bounce has been strong, there is no confirmation of a real reversal on large time frames just yet. For those reasons we need to be cautious and patient. A break above $7.5k could signal the start of a real reversal. Until then we will remain patient and target zones of very strong support for longer term buys in preparation for the next bull run.
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Topic: Bitcoin Update April 8 (Read 123 times)
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