The consolidation in the range $7010-7160 continues.
After fixing above $7160, the next target of buyers is $7400.
Closing the weekly candle below $6960, sellers will begin correction of the price growth from 13 March with a target $6890.
Yesterday’s trading day on Bitcoin market was calm in the 2% consolidation of the range $7010-7160. After the sharp growth of Bitcoin price on 16 April, market participants have frozen in consolidation where they decide on a further vector price movement. Trading volumes in consolidation are constantly decreasing, which means that its near completion is near.
Yesterday during the day, sellers tried to fix below $7080. But an hour before the daily candle closed, buyers broke through local sellers’ protection. So now the price is trading above this mark, but it is within consolidation limits. Today in Bitcoin market were a sluggish price growth and attempts to fix above $7100.
On the hourly timeframe we see a lot of false breakdowns of this mark, but they are not confirmed by increased volumes:
As we can see in horizontal volumes, Bitcoin price is still in the liquid zone and the probability of consolidation continuation and the test of $7010 remain high.
Given that sellers are not showing signs of struggle and Bitcoin price is peacefully in consolidation, the local initiative belongs to buyers. However, it is important to see the fight of market participants on increased volumes to understand whether buyers have a strength to form a new wave of growth. The fact is that on a weekly timeframe, buyers are unable to pass the range $6960-7160 for several weeks:
The price is starting to slow down and closing the weekly candle below $6960 sellers can count on the start of 13 March correction.
Therefore, we believe that this weekend will be as hot as possible. This week’s candle should be a turning point in determining the future vector of price movement in Bitcoin market.
According to the wave analysis after fixing over $7400, the final target of Bitcoin price growth is at $7700.
Although, we show another scenario if sellers will be able to break the current consolidation down:
We look forward to the weekend and we will try to make a forecast for next week price movement tomorrow.
Image Courtesy: TradingView