•  $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:

Bitcoin Price and Technical Market Analysis March 21st, 2020

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:

Bitcoin Price and Technical Market Analysis March 21st, 2020

Sellers are also not particularly confident in their strength and reduce their positions during a fall:

Bitcoin Price and Technical Market Analysis March 21st, 2020

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:

Bitcoin Price and Technical Market Analysis March 21st, 2020

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.

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