Bull Market? (Technical Analysis 06/01/2019)
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Following the relatively strong fall that began at the end of October last year, there was a strong lateralization in prices, which has not yet shown any signs of recovery of the purchasing force very clearly.
There was a rupture of the first Fibonacci retraction zone (0.236) and posterior line test (0.382); however, there was not enough buying power at that time, retesting the previous bottom, somewhere between $ 6450 – $ 6475. This is a good indicator of buyer strength as that critical bottom is still “safe”.
In order to make long entries, we recommend going above $ 7950, which is a critical point for a possible bull market recovery in the coming months. This is because there is a strong seller support near this region, which has not been broken for almost two months. Fibonacci line 0.328, which illustrates our analysis, clearly shows the point.
The Relative Strength Index indicates good buying strength and it is also possible to verify in the volume indicator that the fear seems to have decreased over the last week. ADX is not yet very firm but indicates end of bearish move.
But to affirm the beginning of a bull market, we need to wait for confirmation by the candles. If so, the most likely selling target is close to $ 8850.
Stay tuned for future updates. Be seeing you!