Bitcoin's 1 and 4 hour charts for June 14, 2018
Bitcoin / Dollar BITFINEX:BTCUSD
Good morning, traders. As we discussed during the live stream last night, Bitcoin's price continued to rise as it targeted the ~$6500 area where it is now finding resistance. This has pulled daily RSI out of oversold territory at times, but currently sees it sitting on the cusp. I am still not convinced of the power of this upward movement yet. I want to see the daily candle close above yesterday's open of $6543.90. This would create a bullish engulfing candle on support which is a strong reversal signal. Failure to do so doesn't guarantee we will fall further, but it does increase the likelihood of a stronger drop down into the mid-to-lower $5000s and subsequent strong reactionary rebound. The hourly chart shows us that price recently broke through the top of the shorter-term descending channel it had been in only to return back to it. But the Tenkan line is shoring up support just above $6400 which may give price a place to push off from. If unable to support price, then $6300 becomes the next area of support. RSI was unable to break resistance at the breakout price point as well, and is now looking for support at the next level down as is %B. We can also see MACD curling downward and targeting its own support line. CMF continues to print higher lows as price has dropped, signaling accumulation, but has also printed a descending resistance line that we should be watching as well.
On the 4 hour chart, we can see that price remains within the descending channel that it has been in since the high of $9990. The recent touch at the bottom of the channel usually suggests price movement toward the top once more. That would target the $7000 area which is also the support line of the triangle. Make no mistake, this is a significant resistance area that, if successfully breached, lays the groundwork for a potential bull run. If price can break through that resistance, then traders should be watching the $7200 and $7600 areas. Further price appreciation would then target the descending line of the triangle, currently at around $8800. A breach of that resistance line invalidates the current bearish sentiment associated with the drop through the bottom of the triangle and validates the throwback that price may currently be in. In other words, sentiment should be significantly bullish at that point.