Bitcoin’s recovery continues, as the bears begin to lose their grip, for the meantime at least.
I explained in yesterday’s analysis on Bitcoin, how we may see a drop to a certain level, posting this chart:
Where I mentioned,
“With the Stochastics now heading down from an overbought zone, we may see price hit 38.2% (from the second chart) later today at 403, with 400 providing some support due to it being a psychological whole number.”
Which is pretty much what happened, as we can see via today’s chart below:
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Now, how much strength do these bulls have? Well, due to the recent and consistent bears, it’s difficult to imagine we’re going to see a raging bull – however, what I think may well occur is a rise to at least 478. I say that because of what’s happening right now on the D1 chart below:
I’ve performed the Fibonacci study from the last major swing high (the high of March) at 700, until the low thus far at 342.
We can already see how price has surpassed the 23.6% Fibonacci retracement level – and I’m very confident we’re going to be seeing a rise to the 38.2% level very soon (marked in blue), since for the first time in a long time on the Daily, we have multiple indicators aligned, with the Stochastics heading up from an oversold position, plus the Accelerator and Awesome Oscillators both turning green.
Indeed, a 50% retrace at 520 may be a viable target as well this week, due to such a decent alignment of the technicals.