Buyers broke the upper trend line of the triangle from 8 May and tested $10,398.
Without losing resistance, sellers will allow buyers to continue to grow to $11,000.
Slowing growth and declining volumes will give sellers a chance for correction to $9700.
Yesterday’s trading on Bitcoin market ended with the breaking of the upper trend line of the triangle, in which the price was moving for 25 days. During the day, buyers managed to raise Bitcoin price by almost 10% and close the daily candle with a small pin. This important event took place on increased volumes, which perfectly harmonize with the size of the candle. If you look at the size and appearance of candles during 27-28 May, we see that these days the price has grown steadily.
Yesterday’s daily candle looks even more aggressive than the previous impulse candles both in volume and appearance. Market purchases yesterday were more than 63%, which confirms the dominance of buyers in the market. Now Bitcoin price has stopped in the key price range $10,300-10,500, which actually restrains them for the final reversal of the downtrend. In history, we see that two previous attempts by buyers in October 2019 and February 2020 were unsuccessful, so we doubt that sellers will so easily let buyers higher.
In the 4-hour time frame, we see that the active growth began after the confident break of $9600 by buyers:
Talking about horizontal volumes in Bitcoin market, we see that nothing stopped buyers from the mark $10,100. However, after the upward movement, buyers did nothing during the next 4-hour candle. And now buyers are securely guarding this mark. At the moment, it looks like buyers will keep Bitcoin price above $10,100, arranging consolidation to fully sell off seller’s offer. Their next step will be to break $10,500. Until sellers show their teeth in the form of limit orders or aggressive sales in the market – this scenario will remain the main one for us.
The next target for buyers is around $11,000. This mark is another important trend line from which sellers can theoretically begin the correction:
After breaking the trend line from 2017, buyers will change the global trend for years.
BTC’s dominance in the crypto market reached 77% yesterday:
Market participants were again interested in BTC, but today the influence of the main crypto market coin is falling again. A slowdown of the price in Bitcoin market with declining volumes will give sellers a chance for correction to the mark $9,700. So, let’s see whether sellers today will be able to give fitting reply to buyers concerning 10% Bitcoin price growth.
Image Courtesy: TradingView