• Consolidation in the range $8100-9200 continued.
  • The dominance of sellers in market sales over market purchases has decreased significantly.
  • If buyers confidently test $9200-9400, they will increase their chances to continue the trend.

An attempt to update the local low during yesterday’s trading on Bitcoin market was unsuccessful. Yesterday, Bitcoin price moved in the range of 12% and quite briskly both fell and grow within the range $8200-9142. This time, trading volumes are slightly lower than on 10 May, but sellers are not as confident and aggressive to close the daily candle than on Sunday. If on 10 May market sales were higher by 17%, then yesterday buyers leveled the situation and reduced the gap to 4%. At the same time, the price continued to remain in a constant range.

The daily candle closed below the range $8650-8850 and today everything depends on the efforts of buyers. Having managed to test again $9200-9400 today, buyers will finally get back the initiative. Closing the daily candle above $8900 will give another signal to continue the price grow. As we can see, Bitcoin price continues to move in the red channel, stopping at its middle line. Therefore, if sellers do not resist today – a second test of $9200-9400 is quite likely.

In the hourly timeframe, exactly in this range are aggressive buyers, who yesterday actively sold Bitcoin, lowering the price to $8200:

Bitcoin Price and Technical Market Analysis May 12th, 2020

During the price fall on Bitcoin market on 10 May, sellers managed to pass this range without a stop. That’s why, an unsuccessful attempt to break $9200-9400 will indicate the weakness of buyers and the likely fall continuation to Bitcoin price $7700. Even under this scenario, the growth trend will remain in force.

BTC’s dominance in the crypto market decreased slightly yesterday and USDT increased:

Bitcoin Price and Technical Market Analysis May 12th, 2020

The dominance index is now at the level $67.55, below which interest in Bitcoin may sharply begin to fall. In this case, buyers will have to bravely withstand the blows near the mark $7700.

According to the mood of market participants, the despair of sellers and confusion of buyers are noticeable:

Bitcoin Price and Technical Market Analysis May 12th, 2020

Despite the strong trend, buyers are in no hurry to actively increase their marginal positions. Unlike buyers, sellers will do what they want and actively close their margins from 29 April, without stop even during consolidation.

Therefore, we expect the manifestation of the forces of buyers in Bitcoin market today. Tomorrow we will analyze whether buyers will be able to continue the trend from the current range, whether to expect a continuation of the correction with a critical point $7700.

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