Buyers fixing above $7100 will devalue scenario of the price fall to $5500-5800.
To confirm dominance in Bitcoin market, sellers must close a daily candle below $6800.
The nature of price movements and trading volumes show that the current growth is a correction.
Yesterday’s trading day on Bitcoin market passed in peace and quiet, after a sharp price fall from the mark $7236. During the day Bitcoin price was trading in the 2% range, being in the correction channel of growth. Having closed 4-hour candle on 20 April, sellers completely relieved their pressure. And buyers managed to turn the price up locally during a small consolidation.
However, given the nature of the price growth and the accompanying volumes, we think that sellers will continue the price fall to the lower limits of the liquid range $6500-6800. The density of buyers’ orders in this range over the past few days is simply incredible. It gives an indication of the importance of this price zone. Therefore, the probability of a breakdown of this range down will depend on the nature of the next attack of sellers. In case of successful attack, the final target of the price fall in Bitcoin market is in the range $5500-5700. Otherwise, buyers need to fix above $7100 to continue the growing trend and to test $7700.
As we mentioned above, the trading volumes during the present attempt of Bitcoin price growth are rather small:
The current growth is very similar in volume to the previous correction of the fall wave, during which the higher the price rose the more trading volumes decreased. Although, having passed the mark $6960, the primary checkpoint for sellers is $7100. By giving it away, sellers will show their weakness leaving the way for growth in Bitcoin market.
Today’s price growth in Bitcoin market has slightly increased the chances of buyers for an alternative scenario and growth to $7700. The fact is that after an unsuccessful attempt of buyers to upgrade the local high on 20 April, sellers actively started a counterattack. Though, sellers also failed to update the local low. Therefore, to win the initiative, sellers today need to update the local low, and buyers to fix above $7100.
The daily candle on 21 April closed wonderfully to continue the fall:
A small candle with a nearly identical volume to that of a nearby candle did not suggest today’s local price reversal. As we can see from the wave analysis of Bitcoin price, the scenario is working fine so far. At present, wave (iii) has not yet completed its formation, but without updating the local low today, we will question this scenario.
We expect the end of the day and tomorrow we will talk about the probability of Bitcoin price movement to $7700 or $5500.
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