Bitcoin price ia moving in the range $7470-7580.
Closing a week candle at $7100, sellers radically change the situation, opening the way to $5500-5700.
The critical point for sellers is $7900-8100.
Yesterday, Bitcoin traders traded in 1% consolidation with average volumes. After Bitcoin price shot up, buyers did not continue to press for growth, but decided to gather strength in consolidation. Above $7500, a large number of sellers’ stop orders worked out, waiting for the price fall. It is now important to determine in consolidation whether there is enough buyers’ strength to continue growth, or whether the previous growth with the test of $7770 was final.
The 4-hour timeframe shows us that the bulk of the liquidity is in the range $7500-7560:
The volumes in the consolidation are small and we cannot say that there is a phase of distribution now.
Buyers aggressively join the fight below $7470, sellers in turn do not allow the price to move above $7580. Therefore, now we can expect when market participants gain their position in the narrow range and start to break through aforementioned critical points.
In a previous analysis of Bitcoin market, we remind you that despite the growth, buyers are testing the upper trend line of the wedge for the third time and cannot go higher. It is an indisputable indicator of weakness. However, a weak growth trend is also a trend. That’s why, in the local perspective, after fixing above $7470, buyers are also confident to continue Bitcoin price growth to the range $7900-8100.
Looking at the hourly timeframe, we see that sellers is not yet ready to decisive actions and attempts to fall are not at all supported by volumes:
Buyers confidently enter the position, placing at local highs their limit orders, which sellers fill. However, after the breakthrough of buyer’s limit orders, the sharp fall did not begin. Therefore, the probability of the growth continuation is quite high. In case of the absence of a big seller above, we do not see a barrier to continue growth to $8500 (after fixing above $8100).
Weekly candle in Bitcoin market to the last day keeps the intrigue and still closes above the previous one:
Lowering Bitcoin price below $7100, sellers will begin global correction with a target $5500-5700. Nevertheless, we can talk about it as early as Monday. In the meantime, we expect fixing above the critical points $7470 or $7580.
Image Courtesy: TradingView