Buyers can’t fix price above $7580.
Breaking $7000, sellers will fundamentally change the market situation.
The main fight probably will be in the range $7600-7700.
Yesterday’s trading day on Bitcoin market continued consolidation in the range $7470-7580. Yesterday’s daily candle opened at the price $7508 and closed at $7538, forming pins both up and down. Trading volumes yesterday were even lower than on 24 April. But buyers were able to update the high from 24 April with the help of the false breakdown. In fact, it is the second candle which does not provide significant information about the future scenario of price movement on the daily timeframe. So, let’s move to more local timeframes and try to find some hints.
If we switch to an hourly time frame, it becomes noticeable that buyers are slowly trying to push the price higher by clearly keeping their local trend line:
Their task is to confidently fix above the range $7525-7560, where the main liquidity of the current consolidation is. The seller is above $7580 and it is once again proved by the hourly candle, during which buyers tried to break through the consolidation. And at that hour sellers sharply lowered the price to $7473. During this counterattack, sellers even broke through the local trend line of buyers, but were unable to fix there. The sharp responses of sellers without continuing counter-attacks show their unwillingness to form a new trend. Looking at sellers and buyers limit orders, we conclude that it is much easier to continue to grow because of the lower density of sales orders. Therefore, the local continuation of the price growth in Bitcoin market is a more probable scenario.
However, the main fight in our opinion lies ahead. Looking at the weekly timeframe, buyers have every chance to close this week above $7500. It gives them a chance to continue Bitcoin price growth to the mark $8000 and to create a wide consolidation corridor $7000-8000:
As we can see, buyers were not easily got the mark $7000 and below it gathered a considerable amount of liquidity, which in any case buyers would protect.
So globally, we have two critical points, the breakthrough of which will give the vector of price movement.
According to the wave analysis in Bitcoin market, buyers complete the wave (Y), which at $7700 = 0.618 * (W):
Summarizing, a local extension of Bitcoin price growth is more likely. Although globally we are expecting a sharp aggressive fall with a target $5500-5700. Let’s see if sellers will be active today and whether they can close the weekly candle in the range $7000-7100.
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