Bitcoin Price and Technical Market Analysis May 28th, 2020

• Buyers managed to go beyond the local wedge and test $9200-9400.

• There is a probable price correction up to $8900.

• We expect the growth continuation to $9700.

Yesterday on Bitcoin market, buyers managed to achieve good results. During the day, Bitcoin price rose by 4%, again testing the intermediate range $9200-9400. The daily candle closed almost without a pin and actually neutralized the daily candle of sellers from 24 May. At the same time, the trading volumes were not marked by a special increase. And they were average compared to the previous days.

There were more market purchases yesterday and their total number is 55%. Bitcoin price stopped in the same place where on 22-23 May buyers were trying to reverse the trend of sellers. However, then the daily candles did not look as confident as they look today.

In the 4-hour timeframe, we see that buyers managed to confidently and at high volumes go beyond the black wedge, which we wrote about in the previous analysis:

Stopping in the narrow range $9130-9210, sellers do not pose any danger to buyers in Bitcoin market. Although, current consolidation is more like a temporary stop before a new strong impulse to the mark $9700. The best scenario for sellers at the moment is a correction of Bitcoin price to $8900. Falling slowly without a sharp increase in volumes at this point will be a great entry point for buyers who have not yet entered the market with short-term targets.

Nevertheless, our main scenario remains in place and the growth continuation to $9700 is more likely than a fall scenario. As we can see, there is a black dotted trend line near $9700, which twice deterred buyers from the test of $10,500. If buyers approach this trend line without increased volumes and with sluggish candles – the probability of a new test of $8660-8860 will increase.

BTC’s dominance in the crypto market continues slowly to recover:

The dominance indicator tends to test the mark 67.55%. As a result, we see during the active price growth in Bitcoin market, other coins behave much more passively and some fall slowly during Bitcoin price stop. This fact shows the focus of crypto market participants on BTC at the moment. Therefore, by the end of the week we expect buyers to fix above the range $9200-9400 and continue to grow from next week. We will meet tomorrow on a daily analysis of Bitcoin price movements and find out whether sellers are ready to resist.

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