After testing $5900, buyers have completed formation of wave (W).
Sellers managed to break through $5300 and test $4467 today.
After completing wave (X) formation, buyers will begin a new growth wave with the target $6400.
Quite emotional was the end of trades on Bitcoin market yesterday. In general, the daily candle opened at the price $5218 and closed at $5383. On the one hand, it is of no interest to omit the fact that before closing the candle buyers managed to raise the price to $5900 in one hour. After yesterday’s very passive attack of buyers, which was constantly kept by the lower trend line, sellers tried to lower Bitcoin price. This situation is noticeable on the hourly timeframe:
As we can see, the breakdown was at insufficiently large volumes and usually the breakdown of such a trend line, which kept the price for several days, was accompanied by a sharp fall. In this case, we see that buyers responded instantly, but sellers as well immediately responded in the next hour.
As a result of the fierce struggle, sellers managed to fix below $ 5150-5300 and continue their aggressive fall today to the target $4467. The fall from $5900 to $4467 on Bitcoin market was practically without correction with a short stop near the mark $5300. Throughout yesterday, the high volumes were for 2 hours. The same can’t be said for today, when during the last 6 hours, buyers are aggressively trying to change the market situation. The last 4-hour candle closed with volumes as high as on 13 March. Given this interest, we can conclude that there is enough buyers’ power in Bitcoin market to keep falling.
In any case, we will now expect a test of $5300 and a probable Bitcoin price correction in the range $4650-4780. If buyers keep this fall, the mark $5300 will be under buyers’ control.
Buyers margins continue to increase:
Sellers are also increasing their margins today, but during the sharp reversal, they began to decrease their positions:
According to the wave analysis in Bitcoin market, buyers very sharply completed the formation of wave (W) and tested $5900 yesterday. Today, sellers are forming wave (X):
As we can see the fall corrected the wave (W) by 61.8% today. In turn, buyers corrected today’s fall by 50%. Globally, the next wave of growth has a final target $6400. Therefore, the critical point for buyers is in the range $4650-4780. Keeping it today, we expect Bitcoin price growth throughout the week.
Image Courtesy: TradingView