Sellers organized Bitcoin price growth by 5% yesterday and opened the door to the range $9050-9350.
The price growth on 2 March was at relatively low volumes.
The local critical point for buyers is the mark $8700.
Yesterday’s trading day on Bitcoin market ended with the price growth by 5%. After an unsuccessful update of the local low on 1 March, sellers showed their final weakness and surrendered, giving buyers a chance to make a correction. As we can see at the 4-hour timeframe, yesterday’s Bitcoin price growth was lightning-fast. And after a slight correction the prospect of the growth continuation remains high.
The main target of buyers is $9050-9350. Considering the aggressive price growth yesterday, it is possible that buyers will be able to test this range by the end of this week. Trading volumes are still much lower during the growth than during the fall. So, it is important to see if buyers have enough strength to keep the trend.
On a daily timeframe in Bitcoin market, we see that yesterday buyers managed to absorb three previous sellers’ candles. It may indicate the dominance of buyers in the current price range:
There is a temporary stop of Bitcoin price growth to check the number of sellers remaining on the market. If the local fall is weak and on low volumes, buyers will continue to build their trend sharply.
The systematical closing of buyers’ marginal positions has been going on since 15 February:
Buyers are gradually approaching to the trend line on the chart of marginal positions.
Sellers are trying to increase margins today. We think that sellers’ positions will grow before the test of $9050-9350:
According to the wave analysis in Bitcoin market, sellers failed to correct their previous growth by more than 38.2%:
For two days, sellers were able to fix below this level of Fibonacci. However, buyers with a help of yesterday’s growth brought the level back under their control. That’s why, Bitcoin price fall continuation to the mark $8700 is still our main local scenario. After that, we expect growth to continue. Let’s see tomorrow whether buyers will allow sellers to touch $8700 and what kind of growth should we expect on the way to the range $9050-9350.
Image Courtesy: TradingView