BTC is moving back towards its key horizontal pivot so let’s take a look. The left frame of the chart shows a line that has been the bull/bear pivot when only accounting for the bodies of the 1D candles. Wicks are great price action for daytraders but swing traders are mainly looking for the strength of a trend. This is why I simplified the 1D view rather than putting to much weight on all those spike tops and bottoms.
The right frame of the chart shows a more detailed picture. The line from the left frame transposed over the 1H chart shows just how important that level is. On the way up it was resistance and lately it has been support. The sloping trend line support and the horizontal support are converging as price heads towards the yellow circle. Since the yellow arrow indicates a double bottom the yellow circle would also represent a triple bottom of sorts. There for it is key for price to stabilize in that region or else the bears will come alive. The next support zone is 561-55 on the BTCUSD3M chart.
Charts are powered by the SCMR Analysis Suite on Tradingview.com
June 7 2016