Buyers are trying to test of the range $9050-9350 for the second time.
Closing the weekly candle below $9350 buyers will give a chance to continue the fall of Bitcoin price with the final target $7300.
Locally, buyers will try to continue growing to $9233 to complete the formation of the last correction wave (C).
On 6 March Bitcoin trading day passed in an attempt to fix above the price range $9050-9350. Today, buyers have been able to update the local high by raising Bitcoin price to the mark $9200. Yesterday’s daily candle closed below $9050-9350. Today, considering a narrow 2% price range, buyers are at risk of closing the daily candle below $9050. It will show some weakening and a smooth transition of initiative to sellers.
Therefore, we believe that tomorrow’s trading should show whether buyers can aggressively continue their growth trend. Or whether tomorrow will be another confirmation of the change in local trend. Looking at whole picture, buyers are now finishing the correction of the previous impulse. Soon, we will expect a new impulse with a final target $7330.
At the 4-hour timeframe, we see that it is difficult for buyers to update the local high with the same aggression as they did before colliding with the range $9050-9350:
Thus, in Bitcoin market a blue wedge begins to form, in which buyers having exhausted, must give the initiative to sellers. The critical point for the current local buyers trend is at $8890. After fixing below it, the fall impulse correction from 24 February will be considered complete.
If we pay attention to trading volumes, they confirm our scenario of current growth – as a correction. If buyers manage to fix above $9350, we will review our main scenario.
For the second day, the marginal positions of buyers are trying to increase, but so far it does not seem significant in whole picture:
Sellers saw today’s Bitcoin price growth as a chance to increase their margins:
According to the wave analysis in Bitcoin market, buyers almost failed to form a wave (C) identical in length to wave (A):
Therefore, there is a high probability that buyers will do another attemp to test $9233, after which sellers take the initiative into their own hands.
Looking at the weekly timeframe, sellers are trying to turn Bitcoin price back into the falling channel from which buyers were able to escape in January 2020:
If the weekly candle closes below $9350, the probability of back to the falling channel is quite high. Let’s see if buyers can drastically change the situation in two days, because during the working week they failed.
Image Courtesy: TradingView