The sellers’ attempt to get out of the wedge was unsuccessful.
The main target of buyers is the range $7600-7800.
The critical point of the current growing trend is at $7100.
Yesterday’s trading day on Bitcoin market was in the form of a peaceful consolidation and without any sharp moments. During the day, Bitcoin price moved in the narrow range $7260-7420. On 7 March, just after buyers have met this range, the price started a slight correction to the mark $7100.
Trading volumes remain relatively low and increase only when the price moves beyond the consolidation range. Sellers continue to be sidelined and their efforts are clearly too small to change the trend in this price range. Today, sellers attempted to break the trend line of buyers, but the success of sellers lasted only an hour.
Thus, buyers confirmed their intention to continue growth by keeping both the trend line and not allowing the previous local low to be updated:
Therefore, a test of the next range $7600-7800 is likely enough. It should show the true strength of sellers and their plans.
Looking at the daily timeframe, buyers have almost managed to bring Bitcoin price back to the level of 11 March:
In our opinion, it means that the growing trend is coming to an end. As a large number of investors in the price range $7800 will sell in Bitcoin market. It will be a good test of buyers’ strength.
Marginal positions of market participants remain unchanged:
Buyers during the false breakdown of their trend line, actively began to increase their marginal positions. Sellers are less active in this regard.
According to the wave analysis on Bitcoin market, the last wave of growth is continuing to form, which at the mark $7420 is in 0.618 times lower than the previous one:
The critical point for Bitcoin price growing trend is around $7100. After fixing above $7420, the next target for buyers is at $7820. There pass the range from which the fall of 12 March began.
Looking at the situation locally, we can see that sellers have managed to correct the growth wave from 6 April by 32.8%:
A rather weak correction gives a chance for a sure continuation of the price growth to the range $7600-7800. So, let’s see tomorrow whether buyers will break through the upper consolidation limit $7260-7420 and test our targets.
Image Courtesy: TradingView