Buyers updated the local high stoping at the mark $7454.
Fixing below $7100, sellers will get a chance to test $5500.
Maximum price growth without correction ends in the range $7600-7800.
Bitcoin trading day on 6 April, was under complete control and triumph of buyers. During the day, Bitcoin price rose by almost 10%, updating the local high and stopping at $7454. Trading volumes are increased and allow confidently buy all sellers’ offer which happen on the way. As we see the trend line of buyers, which serves them as a reliable support since 16 March, over the last period is often meeting the price and local highs are updated with less force.
Therefore, despite local price growth, buyers are getting weaker with each high update. The critical point of buyers has moved from the mark $6830, which we wrote about in the previous analysis to $7100. The price continues to be traded in the wedge, which usually goes down. The maximum value of the price growth in Bitcoin market without correction is in the range $7600-7800.
On the hourly timeframe, we see that the small obstacles for buyers are $7100 and $7300:
As we can see from the horizontal volumes, in these marks collected a lot of liquidity. For the local change of forces in the market sellers need to fix below the mark $7300 in the near future. However, given the strength of the local growth trend, even if sellers fix below $7100, the maximum impulse value is at $6700.
Closed without a pin yesterday’s daily candle hints at the likely continuation of growth:
That’s why, fixing above $7400, buyers can count on the test of $7600-7800.
According to the marginal positions of market participants, we see that buyers are eagerly increasing them by rising Bitcoin price:
However, the mood of sellers does not look bad. It seems that sellers are waiting for the moment, also increasing their margins, but not as aggressively as buyers.
According to the wave analysis in Bitcoin market, there is now a 5 local wave of growth, which transforms its movement into a wedge:
If our scenario is true, after fixing below $7100, sellers will have a chance to correct the growth wave from 13 March by at least 50%. Nevertheless, the likely final target of Bitcoin price fall is around $4550.
Let’s see if sellers will be able to repay the passion of buyers and whether buyers can get to the range $7600-7800.
Image Courtesy: TradingView