Closing the daily candle at $5050, buyers opened the way to the range $5600-5700.
The critical point for continuation of the local trend is at the mark $4870-5000.
At the moment, there is a consolidation with a narrowing range of trade in the market.
Yesterday’s trading day on Bitcoin market was quite active with a sharp change in the local trend. In the morning, sellers were triumphers in the market, lowering Bitcoin price to $4468. But in the afternoon buyers took the initiative and closed the daily candle at the price $5050. Yesterday’s price movement range was about 20%.
In terms of volumes, trading is on increased volume, especially when we talk about key price levels:
As we see on the hourly timeframe, buyers make great efforts to keep the price. And looking at their aggressive behavior they are doing it with pleasure. It indicates that this tool is of great interest. If buyers manage to keep local lows during a new attack of sellers – in a few months we expect a new global growth trend. However, it will be later, and now let’s look at the daily timeframe:
As we can see from the two previous candles, which have large pins in opposite directions, at the moment emotions on the market have not subsided yet and there is no clear defined trend. Such candles often indicate continued consolidation and its narrowing. Today’s daily candle should show us a sales zone from which sellers will try to lower Bitcoin price on the market to a lower level of current consolidation. Probably, it is the mark $5600.
Buyers’ margins today began to decrease, reaching the liquidity mark $5350:
Sellers also partially close their marginal positions, but their trend is not broken:
According to the wave analysis on Bitcoin market the third correctional wave (Y) continues its formation now, this wave may stop at $5700:
However, whether it will be the complete termination of the wave, or only the first part of it, we can see on the nature of the correction.
Therefore, we are expecting a daily local high from buyers at $5600-5700 today. And we are preparing for a new sellers’ attempt to take the initiative. When price starts falling, the critical point for buyers will be in the range $4870-5000.
Image Courtesy: TradingView