The weekly candle closed below the critical range $9200-9400.
The probability of a test of $7700-8000 this week is very high.
Fixing the price below $8650 will be a strong argument for the continued fall in Bitcoin market.
The hot Sunday day of trading on Bitcoin market ended with a false breakdown of the range $6650-6850. During the day, Bitcoin price fell totally by 15% of the opening price. Sellers were able to set a local low at $8101. However, buyers did not allow the price to close below the range $6650-6850. Thus, sellers managed to lower the price to the level of 29 April over the weekend. All market participants who bought Bitcoin from 29 April for two days lost their potential profits which they did not fix.
Interestingly, the main wave of the fall lasted only an hour. Bitcoin market is still moving away from this fall, trading in a narrow consolidation. Yesterday’s trading volumes are significantly increased. An interesting fact is that 25% of the daily volume passed in the first hour of yesterday’s daily candle. In general, yesterday’s market sales were 17% higher than market purchases. Given the sharpness of the fall, the percentage of active sales is high. However, most market participants continue to buy Bitcoin, believing in its continued growth. Fixing below $8650 on the daily timeframe will negatively affect the mood of buyers.
If we analyze the situation more locally, then on the hourly timeframe we see, that after the falling impulse a triangle was formed:
The upper trend line is under the mark $8850. Buyers do not allow Bitcoin price to be near the bottom trend line of the triangle for a long time and quickly return it to the consolidation. Although the price in Bitcoin market often exceeds $8650. If you look at the 4-hour timeframe, sellers managed to break this level only with false breakdowns. This fact adds a point for the fall continuation. And if you look at the horizontal volumes, the price is now below the liquid range.
Since the timeframes are not yet synchronized, it is too early to make a decision. Nevertheless, after such a sharp downward movement, sellers must try to continue their initiative today. Now the reaction of buyers is important.
The dominance of BTC in the crypto market has not changed significantly, in contrast to the price and is 67.9% now.
The weekly candle on Bitcoin market closed in the range $9200-9400, creating a false breakdown:
Bitcoin price has clearly started to slow down before this range, which significantly increases the chances of a test of $7700-8000. Therefore, this week will probably be a week of sellers. Let’s see tomorrow if sellers will still be able to fix below $8650.
Image Courtesy: TradingView