Crypto.IQ BTC Analysis June 14, 2018

Strong bounce after exaggerated selling yesterday with added fuel from bullish catalyst SEC news.

Resistances & Supports

Resistances

After breaking above the $6.4k resistance we now set our sights on the previous swing low around $7.2-6.9k.
Above $7.2k we will look to break $7.7k and change the market structure in the mid term bullish.

Support

The resistance at $6.4k now turns back into support, making this a zone we expect price to experience a bounce/reversal from if/when price retraces after this large move.
Below $6.4k remains the large bullish zone from $6k-5.4k.

Ichimoku Cloud

Confluence from the ichimoku cloud appears at our resistance zone of $6.9k by way of the 4H kijun (red line) and the 1D tenkan (blue line).

Wyckoff Accumulation

After price bounced (sprung) upwards with strength today, the theory of the previous price action over the last few months being an accumulation setup is given even more strength. We need to break above $7.7k to continue onwards with this theory.

Oscillators

The 4H bullish divergence has been confirmed with a break above the high, confirming the uptrend on the RSI. The price is experiencing bullish price action which matches up with the bullish divergence. With open space above the RSI there is continued room for price and RSI to move upwards in unison.

Conclusion

After the SEC stated BTC and ETH to not be securities we saw some bullish price action on high volume come back to the market, breaking above the key level at $6.4k. High time frame market structure remains bearish, though, so we proceed with caution. A break above $7.7k would confirm the reversal and put us one step closer to confirming a full trend reversal above $10k. A daily close above $6650 would confirm the bullish engulfing daily candlestick and likely lead to continued short term bullish movement.