The fight for the critical price mark $7100 continues.
Bitcoin price continues to be in the consolidation $6800-7100.
The main scenario of Bitcoin price movement – the fall to $5500-5700 remains valid.
Yesterday was a positive trading day for buyers on Bitcoin market. Closing the daily candle at $7133, buyers completely covered the same aggressive sellers’ daily candle from 20 April. It is again confirmed by the fact that Bitcoin price is now in consolidation and we should expect breakthroughs of the critical points. In our previous analysis, we wrote that the first critical point for sellers is $7100. After fixing above this mark for a short time, buyers failed to continue their growth due to a lack of strength. And today, sellers have easily returned this mark to their control.
Therefore, the local situation is again fifty-fifty and it is sellers’ turn, as there is a favorable chance to test the range $6600-6800:
As we can see on the hourly timeframe, sellers have made corrections to their previous local growth. Now, they are trying to keep buyers below $7100. In horizontal volumes, Bitcoin price has again stopped in the liquid zone. And a rapid growth through such liquidity will not happen without the use of additional forces. If we talk about the density of buyer’s limit orders, it has significantly decreased. Currently, the bulk of buyers’ limit orders is in the range $6800-6900.
On a daily timeframe, for now we can see the equal forces of market participants:
As long as the price is below the red trend line, consolidation continues. Closing today’s daily candle below $7100, sellers will try to break through the growth channel bottom trend line from 13 March. Looking on the situation globally, our scenario remains valid. So, we expect the price fall in Bitcoin market with a final target $5500-5700. If we compare the weekly and the three-day timeframes, we can see that the price is gradually turning and due to the change in the balance of forces is present consolidation:
Sellers do not allow buyers to move above $7250. Buyers failed to update high last week. With each weekly candle, volumes continue to decrease.
According to the wave analysis in Bitcoin market, our main scenario has not lost its relevance. Yesterday’s growth of buyers corrected the first local wave of fall by 78.2%, which is the norm when creating a new trend:
Nevertheless, we continue to wait for Bitcoin price exit from consolidation for realization of the main scenario.
Image Courtesy: TradingView