Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought of funding recommendation.
Bitcoin crashed previous a number of necessary help ranges up to now two days, however in the identical time interval, LEO solely noticed a pullback on its uptrend from early June. Was this an indication of energy for LEO?
The value was buying and selling at an necessary demand space at press time. Some respite for Bitcoin from the promoting strain might properly see LEO soar increased on the worth charts within the days to return.
LEO- 12-Hour Chart
The Fibonacci retracement ranges (yellow) confirmed that the worth was above the 38.2% retracement stage, nonetheless, it noticed massive wicks that noticed LEO momentarily drop to the $5.1 mark. Nonetheless, a buying and selling session shut beneath the $5.26 stage, the earlier increased low, wasn’t seen.
Earlier than the good points of late Might and June, LEO had been toiling in a downtrend. Within the final week of Might, the worth broke previous a decrease excessive at $5.2 and pushed increased to $5.43, earlier than seeing a deep pullback to $4.9. But, in doing so, the longer-term construction was flipped to bullish.
And, that’s the way it stays. From late Might, the worth has set increased lows. Within the days to return, a session shut under $5.26 could possibly be ominous for the bulls. Equally, if the worth can push previous the $5.58 stage, it could probably attain $5.79 earlier than a pullback on its uptrend.
Rationale
The symptoms confirmed the asset having bullish momentum. The H12 RSI retested impartial 50 as help and seemed to be shifting upwards as soon as once more, simply as the worth itself finds help on the beforehand bearish order block.
Therefore, there’s some suggestion that the earlier provide zone has now been flipped to demand, and a transfer upward could possibly be seen. The MACD was additionally properly above the zero line, though it shaped a bearish crossover to point a pullback.
The A/D, alternatively, has been on a gradual downtrend and confirmed that the promoting quantity has been heavy. The CMF has additionally been under -0.05 within the month of Might, to indicate important promoting strain. Nonetheless, the CMF managed to climb again above +0.05, whereas the A/D moved sideways on the charts.
Conclusion
The symptoms weren’t in agreement- though momentum was with the bulls, there was not regular nor important shopping for strain to maintain a rally upward. The $5.2-$5.3 space stays a area of demand. Regardless of the dearth of demand, LEO might push increased as soon as extra.