Starting from 4 May, the price stopped over the main trend line, which constantly kept the price within the channel from December 2018. Buyers are trying to start attack the price zone of $6300-6600, but as soon as the price touches this area, sellers immediately enter the game:
However, at the moment, the initiative is in the hands of buyers and the price for almost a week is above the trend line.
If you analyze the volume, then there are no special changes in the chart. In our opinion, the volumes are not enough to assert that buyers will be able to continue to grow, because even the breakdown of the trend line did not happen on enlarged volumes:
The mood of buyers remained unchanged. Marginal positions do not increase but remain at the level:
Sellers also stopped increasing their positions, but do not panic or close them while the consolidation of price continues:
According to the wave analysis, we think that the third wave of growth, which should end no higher than $7100, continues to be formed. But before that, we expect a price fall of $2200, and only after buyers are able to keep this price will be a high probability of a $7100 test.
An interesting fact can be noted when analyzing a weekly timeframe. With the rise in prices over the past few weeks, the volumes of trading are constantly decreasing. Consequently, we can conclude that the price increases by inertia only because of that on the way did not occur strong liquid areas where the interest of sellers to start their attack will increase several times. Therefore, we continue to monitor the development of the scenario we talked about in the previous analyzes and will now monitor the critical point of $5200-5300. We wish you a successful end of the week. Let’s meet here at the weekly Bitcoin analysis.
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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
