The new week began with a surprise from the buyers who were able to close the last week’s candle almost without a pin, thus leaving the sellers hope for a short-term trend change:
On a weekly timeframe, we see that buyers break through the blue trend line. And this week there is a high probability of consolidation over the trend line. Consolidation is also evidenced by volumes that are gradually decreasing. If sellers after a few attempts will not be able to break through the blue trend line down, this consolidation will be considered by buyers as fixing the price over the trend line and the lack of threat from the side of sellers. Otherwise, we expect a test of the price zone of $6,300-6,600.
If you analyze the mood of buyers, then marginal positions during a new week do not actually change. After aggressive increase in positions on Sunday, buyers are waiting for a new impulse:
Sellers also took the waiting position:
According to the wave analysis, taking into account the latest wave of growth since 25 April, at the price of $7,080, sellers managed to correct this wave of growth by 38.2%. In the result of this correction, a triangle formed in which probably will be 5 waves. After that, the correction will continue to $6,300-6,600 and at this price, the 4th wave will be formed. Another option is continuation of the growth in the form of the 5th wave:
During this probable consolidation, other coins which can not keep pace with Bitcoin may start aggressive growth.
In general, we have noticed that growth is given to buyers much easier than sellers fall. Pay attention to the daily timeframe:
First of all, how easily on 19 May, buyers returned the price to a point of $8,175. Before that, sellers have been trying to push the price down for three days.
Therefore, in the best case for sellers, consolidation in the triangle will continue, and they will have a chance to break through the triangle down to the final target of $6,300-6,600, and in the worst case, buyers sell their growth to the price $9,500. Let’s see, on Thursday, which scenario will work.
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About the Author: Peter Oleshchuk is a trader and technical analyst. He has spent two years studying and analyzing the crypto market. Image Courtesy: Bitcoin News
