Buyers are trying to fix above the mark $7420.
A weak counter-attack of sellers to the mark $7100 gives a chance to continue growing to $7600-7800.
We expect a correction of the current falling trend at $5500.
Yesterday’s trading day on Bitcoin market ended with an update of the local high at $7454 and attempt of sellers to organize a counterattack. As of yesterday, Bitcoin price was moving in the range of 2%, with the exception of the test of $7100. We can see on the 4-hour timeframe, that buyers having come to the yellow range $7260-7420, met resistance from sellers and could not fix above. Trading volumes remained increased until buyers’ first attempt to break the upper limit of consolidation $7420. Following this attempt, sellers began to actively sale with market orders, lowering the price to $7100. This situation may be considered on a 15-minute timeframe:
As we can see, both after the first and after the second attempt to capture $7420, buyers immediately received a rigid response on increased volumes from sellers and retreated.
And here is the question for sellers who have failed to even test the bottom trend line of the global growing trend in Bitcoin market. As we can see on the hourly timeframe, after the test of $7100, buyers were easily “stuck” again to $7260-7420. Now, we do not see hard actions on the part of sellers:
From this, we see that at local highs, buyers feel more confident than sellers. However, the fact of a sluggish update of each subsequent local high remains valid. Therefore, locally buyers have the strength to continue growing to the range $7600-7800. But globally their strength is running low and this trend needs correction.
The situation with the marginal positions of market participants is exacerbated:
The fact is that both buyers and sellers are actively increasing their marginal positions. In such cases, always one side loses, helping the other side to create a strong vector movement.
According to the wave analysis on Bitcoin market, the situation remains constant:
At the moment, wave (v) is 0.618 of length of the wave (iii).
Given the local weakness of sellers, buyers have a chance to fix above Bitcoin price $7420 and continue their growth to $7600-7800. Let’s see if sellers let to exit from the black wedge up and at least touch the trend line of buyers.
Image Courtesy: TradingView