Sellers closed the weekly candle below the opening price of the previous candle at the mark $8710.
In the weekly timeframe, consolidation was organized in the range $8650-9800.
Breaking through the consolidation down the target is $7770, up – $10,500.
Yesterday, trading in Bitcoin markets ended with a price lowering and an update of the local weekly low. During the day, sellers managed to lower Bitcoin price by 6%, in such a way closing the daily candle at around the mark $8710. Sellers managed to close the daily candle almost without a pin, hinting at their plans to continue the price fall. The volume of trades on 24 May is higher than the volumes of the previous two trading days, which perfectly harmonize with the appearance of the daily candle.
Market sales yesterday amounted 57.5%, which confirms the dominance and confidence of sellers. At the moment, in terms of horizontal volumes, we see that the price in Bitcoin market has entered the liquid zone. Below this zone buyers will be interested in buying BTC in the range $7770. Attempt by buyers for two days to fix above the range $9200-9400 was quite unsuccessful. On 23 May, sellers did not actually resist, it can be seen by the percentage of market sales during the day. Since the range $9200-9400 is not a strong liquidity range, as we see in the history of the chart, a failed attempt to break it indicates the weakness of buyers.
So far, Bitcoin price is moving within the red growth channel, the lower trend line of which now passes around $8300. This mark is below the liquid range $8650-8850, so to continue to grow in this channel, buyers should not allow to fix around this mark.
If you look at the situation more locally, the 4-hour timeframe shows that the price fall in Bitcoin market is slowing down:
In comparison with the trading volumes on 9-11 May, when sellers actively attacked Bitcoin price, now the pressure is much lower. If the nature of the fall does not change, then there is a high probability of the transition of price trading in the wedge. In this case, buyers can drastically change the direction of price movement, testing $9400.
Looking at the limit orders of sellers, their main forces are in the range $9900-10,000. Buyers placed a large number of limit orders in the range $8400-8500. Therefore, despite the initiative of sellers, for the test of $7770 they will have to try hard.
In general, the previous week of Bitcoin trading was dominated by sellers, completely covering the previous weekly candle:
In fact, there is consolidation in the range $8650-9800 for 4 weeks on the market. Therefore, the probability of the price reversal in Bitcoin market and re-test of $9800 remain quite high. In case of the price exit from consolidation, the targets $7700 for sellers and $10,500 for buyers remain in place.
BTC’s dominance in the crypto market declined last week:
The prospect of decline is present and this week is quite exciting for buyers. As the probability of breaking the growth trend from 13 March is high. Let’s see whether buyers will be able to absorb the entire offer of sellers in the range $8650-8860 today. And tomorrow we will assess the prospect for Bitcoin price growth.
Image Courtesy: TradingView