Price looks to be losing strength on this recent bounce as it is rejected at $7k.
Price Action Levels
Resistances - Moving the fib set to encompass the lower time frame move, we see that price was rejected by the .786 fib at $7k, we see that this will be an important level to break above before going higher. Above $7k we see an intermediate resistance that gave price some flack on the way up at $7.2k. Most importantly we need to see a break above $7.5k to confirm a higher high and temporary uptrend.
Supports (same situation as yesterday)
There is a chunky zone of support at $6.6k, of which held price up for quite some time. As it continues to get tested it will lose strength as buyers at that level begin to exhaust. A break below $6.6k will likely send price down to a potential double bottom at $6k.
Moving Averages - The weekly candle remains above the important 50 MA for the time being. Reminder, the weekly candle closes at 8 p.m. EST on Sundays.
Ichimoku Cloud - Price was unable to hold above the $7k level where the kijun on the 4H resides. A break above this level, which coincides with a fib and previous resistance, will be a crucial step to recovery.
Oscillators - On the 1D looking at the k-line on the stoch RSI we see that it is headed towards a trending resistance line it has followed over the past month. We need to see a break and hold in the overbought zone to see a significant rally on the daily.
Price is coiling inside of a consolidation pattern at the moment, after the larger move down. High energy moves (volatile) are usually followed by low energy moves (stable/sideways) and vice versa. The main levels we are watching remain the $6.6-6.4k orderblock that has floated price for the past week or so as support, and the $7.5k zone of resistance, which, if broken above, would signal a higher high and the start to a uphill climb into a potential bull trend
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