Buyers went beyond the falling channel and fixed over $7100.
Breaking $7250, buyers will increase the chance to test $7700.
The main scenario of Bitcoin price reversal and falling to $5770 is still valid.
After yesterday’s sharp growth of the price in Bitcoin market participants have stopped in consolidation near the previous local high. Overall, buyers managed to raise Bitcoin price by almost 10% in a day. Trading volumes during the day were increased and it is noticeable that sellers are trying to change the situation, clearly slowing down the growth.
Looking at the 4-hour timeframe, we think that because of the big pins, both up and down, the market is not ready for the next trend. So, consolidation can continue at least until tomorrow. Limit orders are compactly stay in both buyers and sellers. In case of exit from the narrow consolidation $7040-7100, we move locally into the trend movement and globally into a bigger consolidation range $6600-7300.
As we can see at the 12-hour timeframe, the price in Bitcoin market has been in consolidation since the beginning of April. And now the price is clearly slowing down before its upper limit. Therefore, in our opinion, updating local highs is only possible with the help of false breakdowns. Our main scenario – the price reversal and the test of $5770 remain valid, but it may be delayed in time due to the current market situation.
The daily candle closed with great growth potential:
However, as we have seen on the 12-hour timeframe, buyers have ceased active pressure on Bitcoin price and the same can be seen today on the daily timeframe.
Speaking of the local situation, buyers are dominating in the market. They keep the trend line and try to push Bitcoin price higher:
According to the wave analysis in Bitcoin market, buyers managed to correct the previous wave of fall by 61.8% . Now they want to reach the next level of Fibonacci at the mark $7250:
Fixing above this Bitcoin price, buyers have a chance to break through $7400 and to test $7700. It is very important for buyers to properly close the current weekly candle. Closing it at $6900, sellers provide themselves steady fall of Bitcoin price for the whole week.
Image Courtesy: TradingView