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Buyers twice tested $7770.
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Sellers could not take advantage of yesterday’s buyers weakness at $7770 and break the consolidation channel down.
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A correction to the mark $7500 from the current price range is highly likely.
Yesterday, trading in Bitcoin market continued in the narrow range $7650-7770. Sellers are unable to exit from the diagonal consolidation down. Because of buyers who are actively buying out when Bitcoin price falls below $7700. Buyers chose the slow-push price tactic and retested $7770 yesterday, updating the local high on Bitfinex exchange. This tactic was chosen because of the good protection of sellers with limit orders, which are tight enough placed in the range $7800-8100.
If this type of consolidation continues and sellers do not begin to fix below $7500 in the near future, then buyers will be able to really buy out all of sellers’ liquidity in this local blue channel:
Yesterday, in the first hours of the new daily candle, buyers on high volumes could not pass $7770. It gave sellers a great chance to organize their counterattack. However, during the 3 candles on a 4-hour timeframe, buyers were unable to close any of them at least by 70% of body. Buyers’ interest is not diminished on local highs. It can only be changed by the drastic increase of volumes for sale, which we have not seen yet in Bitcoin market.
Since 21 April, at 12-hour timeframe, buyers have been giving many signals to sellers to intercept the initiative. But sellers are still reluctant to change anything:
The daily candle was closed with full body and with a local high update. However, yesterday’s Bitcoin price growth was only 1%. The range of consolidation is narrowing and now we are expecting an unsuccessful attack by one of the parties, It can show the vector of price movement in the near future.
In any case, the higher the price in Bitcoin market is, the more sellers appear and the change of forces will happen. Therefore, the fall to the mark $7500 is likely. The main question is whether buyers will be able to continue their trend after this correction. If sellers fix below Bitcoin price $7500, they will test the range $7000-7100.
The main scenario is the price fall to the range $5500-5700 will be more probable below $7000. Alternative scenario – continuation of growth to $8800 will be confirmed after fixation above $8100.
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