Bitcoin Price and Technical Market Analysis June 7th, 2020

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Bitcoin Price and Technical Market Analysis June 7th, 2020

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  • Sellers failed to fix below $9600 and continue to fall to $9000.
  • The price is traded above the upper trend line of the triangle.
  • The basic scenario of the growth continuation to $10,500-11,000 remains in force.

Yesterday, sellers made an attempt to push the price lower on Bitcoin market, fixing it under the mark $9600. However, Bitcoin price closed above the opening price, showing that below $9668 are buyers who are ready to continue to grow. If we look at the situation starting from 1 June, we see that the sharp attempt to change the trend by sellers on 2 June is gradually failing. Insufficient forces, which played a key role on 3 June, canceled the scenario of the price fall continuation with the target to break $9000 and continuation to fall to $7700.

Now buyers continue to hold back attacks from sellers who pose no threat as long as the price is above the mark $9400. Trading volumes yesterday were lower than on 5 June. The trend of steady decreasing of volumes during consolidation continues and is gradually coming to an end.

Therefore, from next week we will expect a sharp shot of the price in Bitcoin market up. Despite the closing of the daily candle in favor of buyers, market purchases were almost equal to sales yesterday and amounted to 50.1%. Today, buyers must prove their superiority going beyond $10,000. In this case, from next week on Bitcoin market there will be a question of storming $10,500 and a test of $11,000.

As we can see in the weekly timeframe, closing the candle below $10,000 will create a pin, which will give sellers a chance to test $9000. Also they may continue consolidation in the weekly timeframe:

Bitcoin Price and Technical Market Analysis June 7th, 2020

In fact, during the whole week the activity in Bitcoin market was only at the beginning of the week. It showed that the market was not ready for growth at the moment. Given that after a sharp response from sellers on 2 June, buyers continue to put pressure on Bitcoin price, although not so aggressive, what shows their plans to continue to grow:

Bitcoin Price and Technical Market Analysis June 7th, 2020

As we can see in the 4-hour timeframe, buyers are firmly keeping the trend line, which now passes near $9600. In terms of horizontal volumes, we see that fixing above $9800, buyers will exit from the liquidity range. And it will be much easier for them to continue to grow in Bitcoin market. It is now enough for sellers to fix below $9600 to break buyers’ plans, but for now sellers’ attacks look very weak.

In BTC dominance chart, we see that the indicator is still in place and close to a reversal upwards:

Bitcoin Price and Technical Market Analysis June 7th, 2020

Therefore, the main scenario of continued price growth to the mark $11,000 remains in force and we hope to see this mark next week. We have been happy to write technical Bitcoin price analyzes for you for a long time. If the information was valuable and interesting for you, look for it on Twitter by Peter Oleshchuk as technical analysis publications are temporarily suspended on the site. See you!

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