Bitcoin Price Analysis (Week of May 29th)
After an almost month-long correction toward the upward trend, Bitcoin has continued its long-term upward movement.
After an almost month-long correction toward the upward trend, Bitcoin has continued its long-term upward movement. What is the nature of that growth, and what should be expected now?
The current growth was anticipated
The possibility of the long-term upward trend contuing was evident since May 22. The likelyhood of that movement was determined with the help of a number of interconnected analysis instruments. The market is cyclical. Every movement contains another one, of a lower scale, within itself. The traders’ behavior is manifested in that. The big picture of the market’s sentiment can be determined through the use of instruments, which are capable of separating movement cycles of different scale from each other. That’s what we did on May 22. Firstly, we have determined that the movement at that time was a correction, as there was no turn on a medium-term scale. For a turn to decline Bitcoin’s price had to first break through an important resistance line at $440, which didn’t happen. And secondly we have analyzed the intraday trend and found a key level, from which the price has later started its movement.
After that, we have found several key levels across the entire trend, which has started at $435, where the structure could be disrupted; but it has ultimately stayed intact. All those factors combined let us determine the high likelyhood of the current upward trend.
The power of this dynamic was dependent on whether the long-term trend was continuing. As we have said many times already, the longer the flat, the more powerful the impulse which follows it. Bitcoin’s price has broken through all the key maximums of the last year. But such a powerful growth can end in at least a deeper correction, if the bulls’ support is not sufficient at the level of $512.7. That mark is exactly the point of intersection of several key instruments, which can be used to determine the traders’ sentiment.
If Bitcoin’s price starts fortifying at the level of $512.7, the odds will be on the side of at least a deeper rebound.