Bitcoin Price and Technical Market Analysis May 6th, 2020

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Bitcoin Price and Technical Market Analysis May 6th, 2020

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  • Buyers fixed above $6850.
  • Closing today’s daily candle below $9000, sellers will have a chance to test $8850 again with continuation to $8650.
  • Fixing above $9200-9400 buyers will open the way to $10500.

Yesterday in Bitcoin market was a fight for $8850. After a local fall wave during 3-4 May, buyers began a gradual rise of Bitcoin price, slowing near $8850. As we can see in the chart at this mark is the largest placement of volumes. So, fixing above it, buyers get a local advantage and the right to continue to grow with a target $9200. Trading volumes yesterday were above average. Buyers were more active in trading market orders, which indicates a certain initiative.

However, the difference in volumes between active purchases and active sales does not signal about breakthrough of the current consolidation today. As we can see, buyers managed to go beyond the black triangle, but it only brought them closer to $9200-9400, which continues to be the main obstacle to the test of $10500. Looking at the daily timeframe, we see that buyers do not want to give the initiative even after a false breakdown on 30 April and try to continue the pressure up.

However, because of the nature of Bitcoin price growth and the volumes of the last 2 candles, we understand that the chances of sellers to test $8650 again are quite high:

Bitcoin Price and Technical Market Analysis May 6th, 2020

If we analyze the density of limit orders of Bitcoin market participants, we see that in the range $9200-9400 is a large accumulation of limit orders. It confirms our opinion that sellers should protect this range. Buyers want to buy mostly $8600-8800. Therefore, the probability of continued consolidation by the end of the week is quite high.

The hourly timeframe shows the reluctance of sellers to respond aggressively to buyers’ attacks:

Bitcoin Price and Technical Market Analysis May 6th, 2020

A small trace of sellers remains in the form of pins upwards. Though, if you look at the answer given by sellers to the test of $9000 on 5 May, it becomes clear that now sellers are losing the battle.

On the dominance chart, we see that Bitcoin continues to increase its influence, displacing other coins, including the USDT:

Bitcoin Price and Technical Market Analysis May 6th, 2020

The index almost reached the mark 67.55%, from which is probable rebound down.

By closing today’s candle below Bitcoin price $9000, buyers will give sellers a chance for a new test of $8650. Therefore, the main targets set in the previous analysis have not changed. So, we can wait for the closing of today’s daily candle to assess tomorrow’s local outlook for price movements in Bitcoin market. is committed to unbiased news and upholding journalistic codes of ethics. For more information please read our Editorial Policy here.

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