Bitcoin Price and Technical Market Analysis June 1st, 2020

• The weekly candle closed above $9400.

• Consolidation between the marks $8860-9700 continues.

• Growth to $10,500 remains our main scenario.

Yesterday, sellers made an attempt to break through the local consolidation and the mark $9400 on Bitcoin market. During the day, sellers lowered Bitcoin price by 2.5%, almost absorbing the previous daily candle. The test of $9700, which took place on 30 May, did not inspire buyers to continue the price growth to $10,500. Yesterday’s trading day showed us a sufficient number of sellers in the market. They will aggressively form their trend after the first serious mistake of buyers. However, while the range $9200-9400 is under the control of buyers – continued growth to our target remains the main scenario at the moment.

Yesterday’s trading volumes were slightly lower than on 30 May. The tendency of volumes lowering from 28 May tells us that due to the sharp vector of price movements in Bitcoin market is not far off and market participants need to closely monitor their positions. Yesterday, market sales were 54.6%, while market purchases on 30 May were only 51%. This fact shows us the probable local change of forces in Bitcoin market. Therefore, an unsuccessful attempt of the price growth today will signal sellers to continue consolidation with the target $8860.

As we can see in the daily timeframe, buyers continue to intrigue near the upper trend line of the triangle and do not increase trading volumes. Closing the daily candle below $9620 will be signal to sellers to lower the price with the first target $8860.

In the 4-hour timeframe, we see that sellers managed to break the local trend and fix below the trend line:

In terms of horizontal volumes, we see that the largest liquidity zone is in the range $9500-9560. Fixing below $9400, Bitcoin price will quickly reach the mark $9100, where buyers will face with a test on endurance and strength.

On the chart of BTC dominance, we see that yesterday the indicator reached 65.7%. Although, for the third day the impact of BTC on the crypto market is not significantly reduced:

Given how actively other coins have caught up with Bitcoin in terms of growth, the re-increase in interest in BTC should increase again.

If we analyze how the weekly and monthly candles in Bitcoin market closed, we see that globally the situation looks positive for buyers:

Based on the above factors, Bitcoin price growth continuation to $10,500 remains a more likely scenario for us. The critical point for buyers is $9,400. However, even after breaking this mark and keeping the range $8660-8860, buyers will retain their dominance and a chance to continue growing to $10,500. See you tomorrow and analyze whether buyers will be able to locally influence the market in their favor.

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