The daily candle on Bitcoin market closed at $6837.
Fixed below $6600, sellers will move with the targets $5770 and $5386.
The alternative scenario will come into effect after a sharp buyers fixing above $7100.
Yesterday’s trading day on Bitcoin market ended with an unsuccessful attempt by buyers to update the local high at the mark $7236 and a sharp counter-attack of sellers. Testing at 4-hour timeframe the price mark $7236, buyers formed a small candle with a pin on a small volume. This fact indicates the weakness of buyers. After which sellers immediately with the next candle lowered Bitcoin price below the local liquid range $7060-7110.
Sellers’ attack was successful and the price closed below aforementioned consolidation. Attempt by buyers to return this range was again unsuccessful and sellers with new forces penetrated the range $6700. The last attack by sellers ended with a long candle with a solid body and now there is a correction of the fall. We want to say that buyers are trying very carefully to keep the price up by increasing the limit orders in the range $6600-6800. Considering how many efforts buyers make to keep this range, fixing below $6600 sellers will lower the price to the mark $5770.
In case $6600 is kept, buyers will be able to arrange a correction. However, as practice shows from the range $6600-6800 buyers’ attacks are rather weak:
Therefore, the third attempt of buyers’ attack should not raise the price above $7100.
On the daily timeframe, the trend of buyers remains and yesterday’s price fall in Bitcoin market does not look critical:
We have shown the most optimistic scenario for buyers at the moment. Namely the transition of Bitcoin price movement into a triangle. In this case, the probability of a price break up will increase significantly. Although for the time being, it is an alternative scenario. We continue to adhere to our main scenario, namely the correction of the growth wave from 13 March with the first target $5770.
Speaking of trading volumes, sellers show their intentions without hinting, confidently bombarding the “walls” of buyers and only allowing them small corrections. Active sales were 20% more than purchases. Considering the fact that Bitcoin price is now in one of the most liquid zones, it is another fact of seller’s domination.
According to the wave analysis in Bitcoin market, after fixing below $6600 our main scenario will continue to work out with the final point $5386:
To counter this scenario, buyers need to confidently and sharply fix above $7100.
Therefore, we look forward to a further lowering of Bitcoin price. And tomorrow we will see what sellers have been able to achieve today.
Image Courtesy: TradingView