Topic: Bitcoin Update May 3 (Read 133 times)

Price consolidation below resistance continues. GET READY! Big move incoming.

PRICE ACTION LEVELS
Resistances (same levels as yesterday) - Price is back to test the level of the intermediate resistance at $9.4k. Should price break above $9.4k the REAL test awaits at from $9.75-10k, which aligns with the .382 fib.

Supports (same levels as yesterday) - The previous support zone from the last updates has been washed out and made irrelevant, meaning price has entered and exited the zone without and real reaction, leading us to believe the next zone of support that could provide a real reaction is around $8.7-8.6k. Below $8.7-8.6k we see more support around $8k

Chart Pattern (Symmetrical Triangle)
Price is currently consolidating in a symmetrical triangle, ranging between support and resistance while the range narrows. A break above or below with an uptick in volume of either the trending resistance or support, noted by the red lines, will likely be the first sign of the larger future directional move

INDICATORS
Moving Averages (same situation as yesterday) - We saw the 200 EMA act as support for price on the daily chart. We are still wedged between the 200 EMA and 200 MA on the daily chart. A break above the 200 MA would be a boost of confidence in buyers and potentially create some FOMO to the upside.

Ichimoku Cloud - Interesting move today for the tenkan line on the daily cloud! We saw the blue tenkan line move up over $500, inching closer towards the red kijun line. A cross of the blue tenkan above the red kijun will initiate a bullish TK cross and be a very positive sign for price.

Oscillators - On the daily we now see a hidden bullish divergence, where price is making higher lows and the RSI is making lower lows, allowing the RSI to reset while the price continues to hold strong. Being that this signal is on the daily chart, it gives the potential for upside that much more conviction.

Conclusion

The last time we saw consolidation in a range like this for this long was around the bottom at $6k at the beginning of April. That was then followed by a magnificent 4H green candle that spanned over $1k.

Point being: a large move is in the making. A break above $10k allows price to run up to much higher levels with little resistance

Twitter: @BoomerCapital
Web: boomerangcapital.org