Buyers do not allow sellers to fix below the range $6760-6820.
The probability of repeated test of $7350 is quite high.
Alternative scenario is breakthrough of $6760-6820 and test of $6600.
For the third day on Bitcoin market, market participants are sorting out their financial relationship within a narrow 2% consolidation. So far, all attempts of sellers to fix Bitcoin price at least within the price range $6760-6820 have failed. On the other hand, we have passive buyers, who are unable to keep any counterattack of sellers. And the price returns to the same place where the growth began. All this happens within the triangle, which we can see on the hourly frame and also with low volumes:
Such a narrow consolidation can shoot both up and down. So let’s look at the facts which can increase the probability of shoot in one of sides.
Of course, sellers have managed to break through the global trend line of buyers, but it is too early to talk about the final completion of the trend. If we look at the 12-hour timeframe, we see that during the last 4 candles, large pins were formed after the test of the purple range $6760-6820. It indicates the willingness of buyers to keep the price and the chance to counterattack up to the range $7300-7400.
Also, if you pay attention to the book of orders, it becomes clear that there are very many limit orders below $6800, while there are practically none above $7000. As sellers are still trying to push the price in Bitcoin market without increased volumes, we believe that it is unlikely with such a density of limit orders.
Another fact is buyers control of the range $6760-6820. While this range is in their hands, buyers control the situation.
The situation looks worse in the weekly timeframe, where the last weekly candle can close with a large pin up:
As you can see in the chart, for 4 weeks, the weekly candles show us that there are enough sellers on the market to keep Bitcoin price growth. The correction of the current growth trend from 13 March is needed.
The main question is whether it will start after the test of $7300-7400, or sellers will not give a chance to buyers and will break $6760-6820 without correction.
According to the wave analysis on Bitcoin market, the situation remains the same:
The critical point is at the mark $7350. If sellers cannot keep it, then the final target is $7700, after which we expect Bitcoin price reversal. Let’s see tomorrow whether buyers will have the strength for a new wave of growth.
Image Courtesy: TradingView