For the fourth week, there is a bloody fight between market participants for the right to continue to grow to a critical price zone of USD 38-42. This week, buyers will storm the trend line for the third time and try to fix above the price of USD 35.4. Growth, which began on 5 June was due to the weakness of sellers who could not break through the price of USD 28.7. However, this growth, which continues now has profound corrections and indicates a weak trend:
Also, pay attention to the last three day candles and compare their total length with a candle from 13 June. With the naked eye it can be seen that this way: the buyers overcame a week ago with the help of one candle, now needs 3 times more volume. Therefore, we think that there is a high probability of consolidation to continue with the first target of USD 28.7.
At the weekly timeframe, the market situation asks for a correction and a test of the previous historical high of USD 25 and it will be the first target, to start. On this timeframe it is easy to see how the price is stuffed in the blue trend line:
In the wave analysis, the situation has not changed much and we continue to wait for the end of wave (5) formation and at the same time the end of the formation of a new global wave, after which correction should begin. If we analyze the consolidation, then we see that after the wave of growth, a local correction has begun and wave (b) is now forming, after which wave (c) should be formed with a minimum target of USD 25. However, only after wave (c) formation, we will be able to discard unnecessary scenarios of the development of events, since it is likely that consolidation will continue in the form of 5 waves or breakthrough of USD 25.
Targets are the same. If buyers are fixed over the trend line then their next stop is in the price zone of USD 38-42. Otherwise, we expect a continuation of the consolidation with a possible break down to a price of USD 25.
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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. Charts Courtesy: TradingView