Crypto.IQ BTC Analysis June 11, 2018

Sideways movement after the high volatility move yesterday

Resistances & Supports

Resistances

​Same levels as yesterday

A bounce here would set our sights on an intermediate resistance at $7.0k created by the previous low.

Should price break $7k we will look at the resistance from $7.7-7.9k as our next major target.

Supports

Same levels as yesterday

The next support zone is derived from the previous local bottom at $6.7-6.4k. This zone also lines up with a fib level drawn all the way back from the correction to $3k.

A break below $6.4k will likely see price fall to new lows. A very strong support zone for this scenario would be at $5.8-5.5k.

Longterm, the previous top at $5k is an obvious buy level, with added support down below it to $4.7k.

Ichimoku Cloud

The 1H cloud is now showing a tenkan kijun disequilibrium, which will likely result in a reactionary move, causing these two indicators to be closer to one another. In this case this move would be to the upside, giving the probability of a retrace upwards added weight.

Oscillators

What we do see on the 1H RSI is a hidden bearish divergence, which suggests continued downside. Although, this is a lower time frame divergence and nothing that would cause an extreme move.

Conclusion

Just as low volatility precedes high volatility, the reverse can be said as well. We see that occurring at the moment as price rests following the high energy move we saw yesterday. It is likely we see a retrace (bounce) upwards to stabilize the price action and capture any missed volatility from the large liquidation event yesterday which left a gap in market structure.