Crypto.IQ BTC Analysis July 3, 2018

Retrace taking place after a bullish few days, potential higher lows being put in place.

Resistances & Supports

Resistances (same levels as yesterday)

Zooming out, we see price struggled to break above the zone at $6.9k we highlighted previous in the week. This zone remains the pivotal level for bulls to break above.

Looking ahead, a break above $6.9k would set sights on the next macro level at $7.7k

Supports (same levels as yesterday)

As price moves with gusto towards new lows, it seems likely we break below the February bottom at $6k. Overlapping multiple time frame levels highlights the support from $6k-5.8k, which will be a zone to set some bids in for a bounce as price tumbles down.

Should $5.8k fail to hold, there is a nice set of equal lows at the $5.4k mark which will act as support.
In the event price finds its way all the way down to the $5k level, buying in the long term support zone from $5-4.7k will be a good bet for at least a strong bounce.

Ichimoku Cloud

Price is still looking to break upwards and out of the 4H cloud in order to continue bullish movement in the eyes of a cloud trader. The daily cloud metrics show price has broken above the tenkan (blue line) indicator. In the past this has resulted in a leg up to at leas the kijun, which lines up with the resistance just above our horizontal at $7.7k.

Oscillators

4H stoch is supporting the current retrace in price as price moves south away from resistance. We see the stoch signaling a bearish cross and drop down out of the oversold territory.

Conclusion

The resistance from $6.9-6.6k looks to be too strong for now as Bitcoin heads further south to support. The move off of the low was powerful, though, and a higher low looks definitely possible.

Based on intraday levels we’d like to see $6k hold as a higher low (daily bullish breaker). This would set up price to continue onwards with a bullish rally.