Buyers broke the two-week consolidation testing the mark $7773.
A critical point for buyers to continue the trend is at the mark $7100.
There is a high probability of continued consolidation of Bitcoin price in the wedge in the range $7100-7900 to mid-May.
Yesterday in Bitcoin market will be remembered for many sellers as a loss day as buyers managed to change the situation and broke the two-week consolidation up. Buyers managed to raise Bitcoin price by 8% and test the mark $7773 yeaterday. The main upward movement, in our opinion, was provoked by sellers of different trading timeframes. As we can see from the 15-minute timeframe, the first big volume occurred immediately after the triangle trend line was broken. And the second, more powerful one, occurred after the previous high $7454 was broken.
The price has almost reached $7900-8100, where the global fall began on 12 March. It is important to understand now whether buyers are ready to keep the price in this range.
As we can see on the 12-hour timeframe, stopping at the mark $7773, buyers again tested the already familiar trend line of the wedge, from which on 9 April sellers made a correction to $6500. Of course, buyers have proven that the initiative in Bitcoin market is still theirs. Though, the trend weakening is still evident. Breaking through $7300-7400, buyers secured the probability of a consolidation trading in the range $7100-7900 by mid-May. Therefore, we will not count on the continuation of strong trend movement in the coming days.
Daily candle is closed at the mark $7498 and by 40% consists of a pin:
However, such a close of the daily candle indicates at least the prospect of new buyers’ attempts to attack. We will see tomorrow whether it will be planned attacks or emotional convulsions of investors who did not have time to catch the last train.
If you try to look at the mood of market participants through their marginal positions, it becomes clear that the two market parties are convinced of their correctness:
Both buyers and sellers increase their marginal positions. It exacerbates the fact of future consolidation and total defeat of one party, which will provide a strong vector movement of Bitcoin price. Given the global weakness of buyers, we continue to expect price corrections in Bitcoin market and look for signals of a new local trend. The critical point for buyers is the mark $7000. Buyers growth prospects end in the range $7900-8000.
Image Courtesy: TradingView