Crypto.IQ BTC Analysis June 12, 2018

Continued sell off into strong support created by local low early April. Important moment for BTC.

Resistances & Supports

Resistances

Same levels as yesterday
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

Same levels as yesterday
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.

Ichimoku Cloud

The 4H cloud will provide resistance on the way up by way of the tenkan around the $7.2-7.1k level should price bounce and rally from the current market lows. Tenkan-Kijun disequilibrium continues to build, signaling increased probability for a return to the mean (price bounce.)

Wyckoff Accumulation

At the moment a potential spring or shakeout could be playing out, where the larger market players bring price to a maximum point of pain, causing retail participants to capitulate and act as liquidity before price roars higher. Should we see this play out we need a strong move down followed by an ever strong move up, usually resulting in a massive wick.

Oscillators

The 6H and lower RSI is signaling a very strong bullish divergence off of extreme lows right at support. The confluence price at the support zone during this divergence gives the signal added strength, leading us to believe at least a near term rally is very possible.

Margins Positions

The short positions taken out on BTC/USD (Bitfinex) continue to increase, in a parabolic fashion, opening the opportunity for bulls to ignite a short squeeze similar to the last time price was at this level.

Conclusion

A daily close at the current price would be the lowest daily close Bitcoin has seen in the entire bear market.

This would validate the idea of potential Wyckoff accumulate setup.
The bullish divergence on top of the strong support zone adds to the bullish argument for this level to hold, making a short term long on BTC a decent play with proper risk management.