• Sellers tested $8860, but could not fix below $9000.
  • The price remains within the consolidation limits $8860-9800.
  • The passivity of buyers can lead to the fall continuation with the test of $7700.

The last two days in Bitcoin market have changed the local growth trend, eventually testing our first target $8860. Yesterday’s local low is at $8815. Within two days, sellers managed to lower the price by more than 7%. Trading volumes during the fall of Bitcoin price were equivalent to the recent growth of volumes from 16 May. However, sellers managed to use these volumes more skillfully, because with the help of two daily candles they covered the price growth in the period from 13 to 20 May.

The local change in forces in Bitcoin market can also be seen in relation to market sales to market purchases. From 17 to 19 May, the market purchases were dominating in the market. Although, if on 17 May market purchases were 53%, then on 19 May the percentage of market purchases was 50.3%. Over the next two days, market sales exceeded the percentage of market purchases.

Yesterday, 63% of market sales were detected, which significantly outweighs the balance in Bitcoin market. Though sellers did not manage to close the daily candle without a pin, the range $9200-9400 is under their control. If buyers are not able to at least test this range today, Bitcoin price will continue to fall and sellers will test the mark $8860 again.

In a previous analysis, we wrote that it is enough for sellers to lower Bitcoin price below $9600 and in this case their next target will be $8860. The fact is that near the mark $9600 passed a red trend line, which formed a triangle:

Bitcoin Price and Technical Market Analysis May 22nd, 2020

Inasmuch as buyers did not use their chance to break this triangle up, sellers quickly changed the mood in the market, not allowing buyers to organize even corrections. At the moment, there is a high probability of $9800 retest scenario.

As we can see from the horizontal volumes, the main liquidity is in the range $8860-9800. Looking at the mood of buyers, they are not ready to give the lower limit of consolidation to sellers. Therefore, we expect continued consolidation in this range by the end of the week.

BTC’s dominance in the crypto market is gradually declining and yesterday it fell below a critical point 67.55%:

Bitcoin Price and Technical Market Analysis May 22nd, 2020

The prospect of reducing the dominance of BTC is sufficient, so the question arises about the test of our target $10,500. To begin with, let’s see how buyers will cope with the test of $9800.

According to the wave analysis on Bitcoin market, the correction of the price growth from 21 April, which looks like a triangle, is currently underway:

Bitcoin Price and Technical Market Analysis May 22nd, 2020

Yesterday’s fall of Bitcoin price ended the wave (c), which corrected the wave (b) by 61.8%. Given the volumes of the fall, which was lower from 10 May, the probability of wave(d) formation is very high. So, we look forward to the weekend and see whether buyers find the strength to break the triangle up from the current price range.

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