Crypto.IQ BTC Analysis July 19, 2018

Continued consolidation and sideways movement after the large move earlier in the week. Strong resistance just above price.

Resistances & Supports

Resistances

(Same levels as yesterday) A$7.8-7.6k marks the previous resistance and equal highs level that sent price downwards with force during the last attempt at a rally. This level, like the one at $6.9k will cause a strong reaction to price if broken.

Supports

(Same levels as yesterday) Price managed to hop over the minor resistance around $7.35k, coupled with the .382 fib level, this level should give price a bit of a cushion during a potential retrace downwards.
Below the current support level which price is resting on, we see another level created by a 4H OB around $7.2k. This level was blown through on the way up which shows it is not as strong as a support level like the one below it at $6.9k.

Ichimoku Cloud

Just like yesterday, price was unable to break into the cloud with enough force to hold and close within the cloud (as it now stands). The kijun support is just below price at the moment around $7.2k, which lines up with one of our horizontal support levels. Should price manage to break into the cloud, the opposite edge will act as the target, which at the moment lands around $8.7k. We also see the kijun on the 4H lines up with our now important support zone at $6.9k which was aligned with the point of the breakout earlier in the week.

Oscillators

Bearish divergences are now building on higher time frames (4H) for Bitcoin after the larger move upwards. This is not anything to open a trade based solely on, but it does give us a hint as to what is going on behind the scenes dealing with the strength of the buyers/sellers. Should a retrace occur, it should be seen as normal market behavior after such a large move upwards.

Conclusion

Choppy waters again for the most part today as Bitcoin still finds its footing following the explosive move up earlier in the week. Consolidation always precedes impulsion and vice versa, normal market behavior is playing out. The level overhead ($7.8k) is just as important as the one that price broke upwards out of earlier in the week at $6.9k. A break above this level will likely trigger a large portion of stop losses on short sellers and give breakout traders a reason to go long, creating another large move upwards. The level to hold above in terms of support remains the previous resistance turned support at $6.9k.