Yesterday’s daily candle closed below $6830 with a false breakdown up.
The initiative in Bitcoin market moved to sellers.
The local critical point for sellers is the mark $6160.
Yesterday’s Bitcoin trading day ended with a local change of the growth trend. Overall, Bitcoin price were moving in the range of 5% during the day. The new buyers’ attack failed to update the local high. It indicated the weakness of buyers and the probable trend reversal, which we wrote about in the previous scenarios.
Buyers managed to test $7050, after that sellers were able to absorb three previous buyers’ candles using one 4-hour candle. Buyers’ attack was at low volumes and without fervor which we saw during the test of $7283. However, the local buyers’ trend cannot be considered a turning point as the price continues to move within the growth channel. The local critical point to check the strength of buyers trend is at $6545. By breaking this mark, sellers will also be able to break the trend line which buyers have been confidently keeping since 30 March and continue to fall to $6160.
If we analyze the situation on Bitcoin market on a smaller timeframe, we see that sellers broke through the local range $6770-6830, from which buyers began their second attack on 3 April:
At the moment, sellers, after a sharp downward movement, are trying to fix below the yellow range, and so far they are doing well. If buyers are unable to fix above this range today, sellers will continue their attack even more aggressively and without probable stop at the mark $6545.
The daily candle closed below the opening price, forming a false breakdown:
If buyers can’t close today’s daily candle above $6830, tomorrow we can instantly see $6160. Although, since the local buyers trend is not broken, the probability of updating the local high with a target $7500 is quite high.
According to the wave analysis on Bitcoin market, the situation has not changed. And now is beginning to form a new wave of fall with the targets $5500 and $5150. Therefore, we expect the test of the lower trend line of the local channel of growth at around $6160 and the reaction of buyers in this Bitcoin price range.
Image Courtesy: TradingView