A new local attack by sellers with a target $9200-9400 failed.
The trade range is narrowed to $9600-9900.
The basic scenario of the test of $10,500 remains valid.
Yesterday’s trading on Bitcoin market began quite actively with big ambitions of buyers to fix above $10,000. For the first two hours of trading, Bitcoin price rose by 3% yesterday, testing the mark $9944. However, market participants did not support such an initiative and as a result, the daily candle closed by $46 above the opening price. A candle with a small body and pins was formed on the daily timeframe both up and down. This candle makes it clear that for sellers are important the current price range, but they have not yet managed to take the initiative.
Trading volumes yesterday were slightly higher than the previous ones. Market purchases were larger than sales and was 50.5% of the total daily volume. Sellers have managed to almost equalize their forces. Today, we will see whether they will still be able to keep $10,000 and start the correction to $9200 with a probable extension to $8860.
In the 4-hour timeframe, we see buyers could not keep the local trend line. And durint seven 4-hour candles Bitcoin price is trading below this trend line:
After the breakdown of the local trend line, buyers quite passively tried to correct the situation during 3 candles, but it was more like a correction before the fall continuation. Though, sellers did not even have the strength to touch the range $9200-9400. Therefore, the consolidation continues to narrow and now buyers are trying to test $10,000 again.
The dominance of BTC in the crypto market remains unchanged and indicator is actually in place:
The probability of a shot up and an increase in the dominance of BTC is much higher. The main scenario of $10,500 test remains valid.
If we analyze the mood of market participants, we can understand that neither buyers nor sellers in this range of Bitcoin price have certainty about the vector of price movement:
Both buyers and sellers passively increase their positions, but compared to history, it is quite cautious and does not show their intentions.
In general, the situation remains stable and the probability of continuing consolidation until tomorrow is quite high. Let’s see if sellers will still be able to change their situation in their favor and firstly test $9200-9400 today.
Image Courtesy: TradingView