After a significant 22% bullish move up from 9k to 11.1k on high volume, bears were swift to reject price action to the downside at the 11k daily resistance.
There are a few confluent bearish factors in play in the 11.1 region:
1) The 0.382 fib retracement from 13.9k to 9k
2) Daily resistances at 10.8k to 11k
3) Historical price action from late June into early July
These factors will continue to serve as a strong resistance for the bitcoin bulls until proven otherwise. With that being said, our directional bias is bearish based on the current market structure of a lower low set at 9k and a tentative lower high being set at 11.1k.
In addition to price action, we can examine our indicators:
1) RSI: RSI is stalling out on the daily and is failing to break through resistance around 50
2) MACD: The MACD histogram is ticking up, but is without much momentum and looks like it wants to roll over to the downside
3) EMAs: There are multiple high time frame EMAs acting as resistance around 11k with the most notable being the looming death cross (55EMA crossing under the 200EMA) on the 4HR time frame!
Game plan:
Bullish: A 4HR uptrend is still intact. If bulls can break past the the resistances at 11k, look to long on the retest
Bearish: Given the intraday price action, a break and close below 10.2 would provide a good short opportunity when that level flips from a support to a resistance
There are a few confluent bearish factors in play in the 11.1 region:
1) The 0.382 fib retracement from 13.9k to 9k
2) Daily resistances at 10.8k to 11k
3) Historical price action from late June into early July
These factors will continue to serve as a strong resistance for the bitcoin bulls until proven otherwise. With that being said, our directional bias is bearish based on the current market structure of a lower low set at 9k and a tentative lower high being set at 11.1k.
In addition to price action, we can examine our indicators:
1) RSI: RSI is stalling out on the daily and is failing to break through resistance around 50
2) MACD: The MACD histogram is ticking up, but is without much momentum and looks like it wants to roll over to the downside
3) EMAs: There are multiple high time frame EMAs acting as resistance around 11k with the most notable being the looming death cross (55EMA crossing under the 200EMA) on the 4HR time frame!
Game plan:
Bullish: A 4HR uptrend is still intact. If bulls can break past the the resistances at 11k, look to long on the retest
Bearish: Given the intraday price action, a break and close below 10.2 would provide a good short opportunity when that level flips from a support to a resistance