Buyers tested the critical range $9300-9500.
The main scenario is a correction to the range $7550-7700.
Fixing today at $9500, the next target is $10,500.
Yesterday’s trading day in Bitcoin market is difficult to call average and expected. During the day, buyers managed to raise Bitcoin price by almost 15%. The daily candle has closed almost without a pin and to expect continued growth is logical. The trading volume yesterday reached the volumes of the period on 13-19 March, when the market was recovering from the panic price fall. All sellers who were waiting for a price reversal were knocked out positions.
Only those sellers who entered the positions between 22 February and 5 March were able to keep their positions.
Buyers were able to accelerate the price growth by leaving the black local channel, where the price was traded from 18 March. Buyers have also practically tested the upper trend line of the global falling channel since July 2019.
In the previous Bitcoin market analysis, we wrote about a significant change in market sentiment from 21 April, which could cause the test of $9300-9500. This range is critical for sellers, as above it buyers are likely to start a new global trend with a first stop $10,500. Today, buyers have managed to test this range and they have met with resistance:
As we can see at the 4-hour timeframe, sellers have started Bitcoin price correction, but so far they are unable to absorb the previous candle of buyers. It indicates a likely price stop and the beginning of consolidation, which will result in the fall with a target $7550. In the chart we clearly see that in case of fixing below $8600, sellers will be able to take the initiative from buyers and start their local trend. An alternative scenario is possible if today’s candle closes near $9500. In this case, the mark $10,500 is expected by the end of the week.
If we analyze the dominance chart of BTC, USDT and other coins, now Bitcoin is growing, USDT dominance is falling and other coins are showing much weaker growth.
During Bitcoin price correction, USDT domination is increasing and the price of other coins significantly falls. In our opinion, it is a sign of a likely end of growth.
According to the wave analysis on Bitcoin market, the wave (Y) exceeded our expectations, having passed the mark $8800:
If today’s test of $9300-9500 is a false breakdown, the price will fall to $7700 to begin with. There, we see Fibonacci level 0.618. Therefore, we look forward to the closing of today’s candle and tomorrow we will assess whether buyers still have a prospect of Bitcoin price growth.
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