• Sellers have twice tested the range $9200-9400 in order to continue to fall to $8860.
  • Consolidation was formed in the range $8860-1000 and the middle $9200.
  • Keeping $8860 the next target of buyers is $10,500.

Yesterday’s trading on Bitcoin market was held under the flags of sellers, who confidently and systematically lowered the price to the local range $9200-9400. Bitcoin price twice fell into this liquid range, while updating local lows. In general, sellers managed to lower the price by 5% during a day, completely absorbing the previous daily candle. The volumes of trades yesterday did not differ and was even slightly less than on 14 May. Market sales were only 8.7% higher than purchases.

Therefore it is impossible to talk about full dominance of sellers in the market and about confident continuation of the price fall. In general, if we analyze the difference between market sales and purchases above Bitcoin price $9200 – the forces of market participants are almost equal. It indicates the formation of consolidation in the range $9200-10,000, which will continue until the balance of power is noticeably shifted to one of sides.

The probability of such a scenario is confirmed on larger timeframes, such as 3D and 1W:

Bitcoin Price and Technical Market Analysis May 16th, 2020

As we can see in the chart, the price on Bitcoin market for the third week is closing below the range $9200-9400 while touching $10,000.

In the 3D timeframe, we see that the range $9200-9400 is the middle of the consolidation, which explains its frequent breakdown both up and down. That’s why, closing the weekly candle below $9200 sellers will provide themselves a huge chance to test $8860. And at the same time check the intentions and strength of buyers.

In the 4-hour timeframe, we see the resistance of buyers in the range $9200-9400, but the sharp counterattack quickly fades.

Bitcoin Price and Technical Market Analysis May 16th, 2020

It seems that from the current Bitcoin price range, buyers are unable to build a strong counterattack.

Therefore, the sluggish closing of today’s daily candle will inspire sellers to take action on Sunday.

BTC’s dominance in the crypto market is slowly declining, but continues to be above 67.55%:

Bitcoin Price and Technical Market Analysis May 16th, 2020

The sharp increase of USDT dominance indicates the unwillingness of market participants to confidently buy other coins during the fall of Bitcoin. Thus, if the dominance of Bitcoin is below 67.55%, there is a risk of a sharp fall of the entire crypto market.

Critical points for buyers remain unchanged. Keeping $8860, the main target of buyers remains in the range $10,500. Let’s look at Bitcoin market on Sunday, which is often quite saturated.

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