• Bitcoin price continues to be in the range $9200-9400.
  • Sellers reduced their resistance yesterday.
  • Our local scenario is the test of $9800, the global one – continuation of the fall to $7770.

Yesterday’s trading on Bitcoin market was in a large consolidation in the range of $9166-9235, which is less than one percent. As we can see, the intrigue of the weekend continues and today there is a high probability to see a strong vector movement of Bitcoin price. During the day, local highs and lows in the form of false breakdowns were also set. But they did not greatly expand the range of Bitcoin price trading. Buyers were able to update the local high of the previous daily candle at the mark $9309.

However, the volumes of trades that are lower than the previous day and the general appearance of the candle tell us that buyers are in danger. On 21 May, sellers made a move, attacking the market and capturing the range $9200-9400. All buyers did in response was a slight price rebound without volume during two days. Today’s unsuccessful closing of the daily candle may be a signal for sellers to continue to put pressure on the price with the first local stop $8650. As you can see on the chart, at this price passes a trend line and is a sufficient accumulation of liquidity.

In terms of horizontal volumes, we see that in case of fixing below this mark, the target $7770 looks very realistic. Despite the appearance of the candle and smaller volumes, market purchases yesterday accounted for 52%. Active sales have declined significantly and the lack of sellers in this range today could pave the way for fixing above $9400.

If we analyze the 4-hour timeframe in Bitcoin market, we see that yesterday buyers gained a position in the range $9090-9170:

Bitcoin Price and Technical Market Analysis May 24th, 2020

In this range, we see several candles with pins down, where sellers made unsuccessful attempts to continue Bitcoin price fall. This fact explains the passivity of trading on the previous day and explains the passivity of trading by reversal and accumulation of liquidity. The local trend line of consolidation is under the control of buyers, so the test of $9400 with continued growth to $9800 remains our main scenario. The critical point for buyers is at $9150.

BTC’s dominance in the crypto market stopped at 67%:

Bitcoin Price and Technical Market Analysis May 24th, 2020

Starting to increase dominance with the test of 67.55%, buyers will have a great opportunity to test $9800. Nevertheless, after such a test, the fall in Bitcoin market may continue with the high update. Therefore, our local scenario is the growth to $9800, the global scenario is the fall to $7700. Let’s see how Bitcoin trading week will end. See you tomorrow on the weekly analysis!

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