Sellers tested the mark $8105 for an hour.
The price again stopped in the range $8650-8850.
The critical point for buyers trend is around $7700.
There is no peace in the hearts of Bitcoin market participants over the weekend. Once again, strong movements of Bitcoin price occur on the weekend, and this weekend confirms it. Yesterday’s trading day closed at around $9534. Sellers slowly reduced the price, leaving the consolidation range $9760-10,000 and they did not accelerate the fall.
In the previous analysis, we wrote that the limit orders of buyers are in the range $9500-9600. Therefore, to expect a test of this range and the continuation of trading in consolidation with a larger range of price movements – was quite a probable scenario. As you can see, trading volumes on 9 May were lower than the previous day and the probability of renewal of the price growth in Bitcoin market was quite high.
However, as we see in the hourly timeframe, in the first hour of creating a new daily candle, sellers sharply lowered Bitcoin price, testing $8105.
All this happened in just an hour and within 8 hours, buyers were able to organize a small consolidation and an attempt to fix above the previous critical point $8850. If you look at the horizontal volumes, we see that sellers are not fixed below $8650-8850. Buyers seized this range on 29 April and are fighting for the third time to maintain control over it.
Sellers are sharply moving so the continuation of consolidation in the range $8650-8850 is quite a likely scenario. At the moment, we see that buyers are in no hurry to return the lost positions and want to make sure that they have enough strength to keep the price in Bitcoin market. That’s why, repeated test of Bitcoin price $8650 on reduced volumes and slow fall will give buyers confidence to break $8850 and continue to grow to $9200-9400.
Despite the sharp price fall, BTC’s dominance in the crypto market has not decreased significantly:
Nevertheless, if buyers will keep the dominance 67.55%, they can expect to retest 69% and break the black trend line up.
According to the wave analysis in Bitcoin market, sellers managed to correct the growth wave from 16 April by 50%:
To maintain the growth trend, buyers cannot be given Bitcoin price $7700, where the lower trend line of the red channel and Fibonacci level 0.618 pass. Therefore, today’s fall can be seen as a sharp correction. Let’s see tomorrow how the weekly candle will close and whether buyers will be able to respond with a counterattack by the end of today.
Image Courtesy: TradingView