Weekly prices are held by the 61.8% Fib level support at $7213, prices are trying to do S/R flip of 49 days SMA (Simple Moving Average) and 9 days SMA denoted by the green line and blue line respectively in the below-given chart. Weekly prices have been rejected by the 9 days SMA previously; if this trend continues then the next support is at $6000. RSI (Relative Strength Index) is at 43.88 and Stoch RSI (Stochastic Relative Strength Index) is at the oversold region.
Daily prices are held by 9 days SMA (blue line), 21 days SMA (green line), and weekly 61.8% Fib level as shown in the below-given chart. The double bottom pattern is formed at the 61.8% fib level support and BTC can bounce to $8000 area which is the next resistance area.
Laying IchimokuKinko Hyo over 1-day chart of BTC against the USD, the following things can be observed:
- Prices are supported by Tenkan Sen (blue line) and Kijun Sen (red line) as prices have successfully done S/R (support/resistance) flip of these resistances.
- The next resistance is at $7500 and $8500, as denoted by the Senkou Span A and Senkou Span B respectively.
- Chikou Span is trying to get above the price candles, which is a sign of reversal.
Conclusion: Weekly prices are supported by the 61.8% fib level, and meanwhile, daily prices are forming a double bottom pattern. Ichimoku Kinko Hyo indicates a reversal in trend as price candles are supported by the Tenkan Sen and Kijun sen. BTC prices may bounce till $8000 to $8500 area, which itself is a big resistance, as shown by the Kumo in the Ichimoku chart. BTC has to do S/R flip of $8500 level for the complete reversal or else it will be a dead cat bounce and the prices will go down towards $6000.