Bitcoin Update April 18

[Boomerang Capital Inc]

Price was rejected again at the zone of resistance from $8.2-8.3k, a break above this level remains critical to begin a real recovery and bullish trend on higher time frames.

Price Action Levels
Resistances - The next horizontal level of resistance we are keeping our eye on remains around $8.3k. This is a big level on the weekly and will be a very bullish sign if we manage to begin trading above this area. Above $8.3k we can start setting our sights on intermediate zones of resistance like $8.6k

Supports - The level of support directly below price at the moment is $7.8k. Below $7.8k we are eyeing $7.5k for at least a bounce before moving back down to the previous trading range we were in last week.

Indicators
Moving Averages - Zooming into lower time frame moving averages, we see the 50 MA looks ready to cross above the 200 MA on the 4H, which would signal a golden cross, which is indicative of short term movement (50 periods) being stronger than the movement of the longer term past (200 periods). This signal is not necessarily a sign of an entry or exit, but rather a signal of confluence, support bullish movement.

Ichimoku Cloud - Price has managed to drop below the 4H cloud Tenkan line. At the moment this line will act as resistance, with the cloud support at $7.8k right below.

Oscillators - The 4H RSI has respected the trend line drawn in the chart for over a week now and a break below this trend line could be a sign of a short term dip.

Conclusion

Price is ranging between the important zone of $8.3k resistance with the support zone at $7.8k. A very solid break above or below this range will be telling of what we can expect in the future in terms of price.

Above $8.3k, longs and bulls will gain confidence and likely send price up to test higher time frame resistance at $9k, whereas a break below $7.8k will put the idea of a recovery out of a bull market back a few steps.

Twitter and Telegram Handle: @BoomerCapital
Website: boomerangcapital.org