Looking at our trend timeframe we see price is currently testing our $6,000 zone for support, this would be the 5th time if BTC decides to hold at this level. Stochastic RSI showing momentum is heading towards the downside, however when taking a closer look we see price could possibly form a double bottom at this level. BTC currently bouncing off our dynamic support as well, very critical point here, a weekly close above $6,700 and expect a nice push towards our $8,000 resistance. However if we are rejected at this level expect BTC to sell off towards our $5,000 support level.
Shifting over to our pattern timeframe we see price has broke out of it’s aggressive downtrend and is currently struggling to break through $6,500, although stochastic rsi showing momentum is in favor of bulls. A daily close above $6,500 activates our trade, however if we see a daily close below $6,300 expect our sell off to continue.
Last but not least looking at our trigger timeframe we see price has found support at $6,250 and resistance at $6,450, stochastic rsi showing momentum starting to shift in favor of bulls. A 4hour close above $6,450 activates our trade and we should be seeing BTC set a higher high, however if rejected at this level and close below $6,300 expect our psychological support of $5,000 to be tested.
