Crypto.IQ BTC Analysis July 10, 2018

Bulls lost steam and bears sending price further lower. Support at $6.35k managing to hold, for now.

Resistances & Supports

Resistances (same levels as yesterday)

After failing to hold at $6.6-6.55k this will be the next level of resistance for BTC, created by the previous bullish orderblock on the 1D and 4H.

Above $6.6k we see strong resistance which price was unable to break above from $6.75-6.9k, created by the daily bearish OB and .236 fib level.

Supports (same levels as yesterday)

Below current price we have some support holding from $6.4-6.35k created by a daily orderblock as well.

Should price fall below $6.35k, the daily bullish breaker from $6.1-6.0k should give price a bit of a bounce if not a reversal.

Ichimoku Cloud

Using the cloud as a confluence for support levels, we see that $6.3k appears not only near our current horizontal support but also in the 1D tenkan (blue line) and 4H cloud edge. A break below this level would be trouble based off cloud metrics.

Oscillators

The daily stochastic has now crossed bearish and is curving downwards and heading out of the overbought zone, this is a sign of mid-term bearishness. On the lower time frame (4H) we see the stoch is crossing upwards and out of the oversold zone, which indicates potential for a nice bounce or bullish move back towards resistance.

Conclusion

Bears have regained control after bulls failed to break above the crucial resistance at $6.9k.

Until that level is broken, mid-term and long-term market structure remains bearish and intra day traders should stick to shorts.

The current support at $6.35k looks ready to give price a bounce back up to resistance around $6.55-6.6k. Expecting a retrace back upwards before further movement downwards.