$6923 and $5665 are two price marks which Bitcoin market participants saw yesterday.
The next sellers’ target is at $5280.
Fixing above $6340, buyers will have the chance to upgrade the local high.
Yesterday was quite painful on Bitcoin market for those buyers who actively bought Bitcoin above $6300. After fixing a new local high at Bitcoin price $6923 for 3 four-hour candles, sellers managed to lower the price to $5665. Looking at the volumes during the storm of $6923, we conclude that at local highs there are a lot of cheated buyers, some of whom were closed at margincalls with a candle, which has tested $5665.
The current fall still looks like a correction, but given the previous bright fall of 12-13 March and the fact that buyers are not particularly trying to reverse the local trend of sellers, we believe that a new wave of fall has begun. A critical point to change our scenario is if buyers fix over the range $6150-6350. By horizontal volumes, we see that quite a lot of liquidity has accumulated in this range. If sellers can’t keep it, they will show their weakness and pave the way for a new impulse for Bitcoin price growth.
On the daily timeframe yesterday’s candle closed ambiguously, forming pins both down and up:
However, given the direction of the price movement in Bitcoin market, the balance of power has clearly changed. If sellers manage to close the daily candle in the range $5450 the probability of the fall continuation with or without correction will be high enough.
Margins of buyers continue to decrease:
Sellers are also not particularly confident in their strength and reduce their positions during a fall:
According to the wave analysis in Bitcoin market, sellers managed to correct yesterday’s growth of 13 March by 38.2%. After that there was a sharp rebound:
Nevertheless, buyers did not continue the initiative, so the next target is $5280. At this mark, the correction of previous growth will reach 50%. As we can see, in addition to Fibonacci levels, there is a key liquid zone, from which we expect a strong rebound upwards. Will it be a new growth impulse or a temporary growth before we continue to fall, we will see later. An alternative scenario will come into effect after buyers fix above Bitcoin price $6340.
Image Courtesy: TradingView