Bitcoin Price Analysis: Bullish Outside Day Hints Further Recovery Ahead

As originally published via **[CoinLive](https://coinlive.io/analysis/bitcoin-price-analysis-xxx-68e27c83-449b-4fab-9ca0-d6d9fb42aeb8)**

– The aggressive rebound off $7k suggests prospects of further recovery.
– The increased in the buy-side volume supports the move higher.
– The market should remain short-term bullish while above $7.2k.

**BTC/USDT – [Access Full Scale Chart via TradingView](https://www.tradingview.com/chart/2GDDcVTb/)[](https://www.tradingview.com/chart/1KUDggr8/)**

[![](https://coinlive.io/ckeditor_assets/pictures/942/content_1.png)](https://coinlive.io/ckeditor_assets/pictures/942/content_1.png)

On the daily chart, a bullish outside day is pre-emptive of a potential extension of the bullish momentum after the vigorous rejection off a key support at $7k. The buy-side volume was slightly higher than its preceding day, suggesting an increase in the commitment by buyers. The prospects of a recovery towards the area of support-turned-resistance circa $8k should be on the cards short term. The break above Tuesday’s highs shows the right bullish intent for such upward continuation.

[![](https://coinlive.io/ckeditor_assets/pictures/943/content_2.png)](https://coinlive.io/ckeditor_assets/pictures/943/content_2.png)

On the hourly chart, we saw two consecutive green candles with huge volumes, allowing a $500 recovery which has found acceptance near the highs. The volume profile for Tuesday, with the majority of the volume concentrated on the upper end communicates a market that is building value at higher levels.

The impulsiveness of the move up has also confirmed the formation of a first bullish cycle on the hourly, with two volume nodes acting as dynamic supports on any potential setbacks. In the short term, as long as the market can hold above the latter point of control at $7.2k, the prospects for a continuation of the bullish bias is quite possible.

**Footnotes:**

– Given the discrepancies in price levels on different exchanges, in order to keep our technical studies consistent, the chart selected for analysis is generally the dominant by trading volume. Extrapolate levels to your own respective charts.

– The dash lines are utilized to represent the latest cycles. Markets tend to move in cycles of 3 followed by a period of distribution and/or accumulation. Cycles are repetitive patterns that provide both market magnitude and timing studies.

– The volume profile analysis tracks trading activity over a specified time period at specified price levels. The study reveals dominant and/or significant price levels based on volume. This process allows understanding market opacity.

– The yellow rectangles in the chart represent the areas of most interest by trading volume, and should act as walls of bids/offers that may result in price reversals.

– Technical analysis is subject to fundamental-led news (inter-dependent). Any unexpected news may cause the price to behave erratically in the short term, while still respecting the most distant price references given



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4 Comments

  1. Cockatiel
    May 31, 2018
  2. destrukkt
    May 31, 2018
  3. Saensy
    May 31, 2018
  4. BleedingUnicorn
    May 31, 2018

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