Daily Report – Bitcoin and Market Update (May 30 2020)
Middaily CME session closed the weekly session with a gravestone doji and hanging man candle after tapping right into diagonal resistance, signaling high chances of local throwback. Momentum analysis does suggest breakout to the upside after possible retrace towards mid-range 50% level of 9230. Target of breakout of the symmetrical triangle (very clean structure) is 11700-11800. This would result in closing breakaway gap from 9th of August 2019 and most likely definite directional signal towards reaching new highs 14k+ within next months. If we reject the resistance on the spot market (not CME futures) and decline heavily, there’s going to appear a gap with resistance to tap 9380. I would certainly not feel comfortable holding any shorts as HTF technicals suggest clearly upside breakout is more likely at this moment.
MTF trading in the upper half of the range at 9530s as we speak. The bullish situation and scenario I talked about it previous reports did happen with MA50 (12h) 9300 being reclaimed as a new support. This mid-range level must hold from now on. Confluent directional bias from SMA200, SMA50, SMA100 going up, which means MTF trend up is still sustained well. Momentum is bullish and trading below overbought zone with room to grow to the upside. Currently BTC/USD is locally consolidating before highly potential tap into 9800s diagonal resistance. The next 48h would most likely decide about future of bitcoin – whether we follow to make new highs 10.5k+ and 14k+ or we invalidate the bullishness of the triangle and decline towards 6800s, which imo it’s much less likely.
Hourly overview suggests consolidation that might be taking a form of a mild-steep descending channel or range. Momentum is still bullish and near overbought area. If MA50 (1h) is lost, then next support zone is 9200-9260. Breakout to the upside of the consolidation would result in 9700-9800 retest. Local supports area 9320-93200, 9100, 9012. Local resistances are 9630, 9760, 9970-10000. Momentum suggests it’s much more likely to come for upside breakout of the triangle.
Let’s see if on Monday we wake up to a brand new chapter for bitcoin. More details for premium subscribers of our Discord Trading Community in the exclusive #video-report channel.
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