Bitcoin price continues to be in the critical range $8650-8860.
The slowdown of the fall and the failed fixation of the price below $8650 will give buyers a chance to sharply test $9400.
The targets after the price exit from the consolidation are not variable – $7770 or $10,500.
The first day of trading of the new week in Bitcoin market began with the attempt of sellers to continue the fall. By updating the local low at around $8620, sellers were unable to continue Bitcoin price fall due to the active buyers. In the end, the daily candle closed at $8902, by 2.2% higher than the opening price. If we compare the daily candles on 24 and 25 May, we can conclude that the local attack of buyers has not changed the market situation.
Trading volumes on the market are almost the same, but the daily candle of buyers on 25 May looks much weaker. In addition, market purchases were 53% on 25 May, and during sellers’ attack on 24 May, market sales were 57%. So far, sellers have more aggression and more power to restrain the price during the buyer’s counterattack. Therefore, the continuation of the price fall in Bitcoin market to the lower trend line to the range $8400-8500 is quite real.
In the 4-hour timeframe, we see that the price continues to trade in the black wedge:
In terms of horizontal volumes, we see that now Bitcoin price is in the liquid range, which sellers are trying to push down without haste. If sellers do not increase their pressure on the price, then it will be in the hands of buyers. In case buyers do not allow the price to fix below $8400, they can expect a sharp rebound to $9400 with a break of the upper trend line of the black wedge.
In the chart of BTC dominance, we see a slowdown of the fall indicator:
For the third day, the dominance rate slows down at the mark 66.5%, giving a chance for 67.55% test. It reinforces scenario of the test of $9400. In this case, other coins may lose their volatility and remain in consolidation, or slowly fall.
According to the wave analysis in Bitcoin market, the global situation remains unchanged and we expect the end of the wave (Y). Locally, we see that sellers corrected the previous growth of buyers by 61.8%:
The maximum allowable fall target, after which buyers can continue to grow with the first target $9400 is $8450. Starting from 10 May, Bitcoin price is in correction, from which we expect an exit either to the target $7770 or to $10,500. Let’s see how buyers cope with the test of $9400. And by the nature of growth we will analyze the probability of the price growth continuation.
Image Courtesy: TradingView