Buyers managed to keep the range $8650-8860.
Weakness of sellers at local lows allows buyers to test $9200-9400.
The global target $9700 with a likely continuation to $10,500 remains valid.
Yesterday’s trading on Bitcoin market ended with a failed attempt by buyers to continue to restore their price positions. Yesterday’s daily candle closed at $8841. But during the day it managed to update both the high and the low of the previous day. Trading volumes continue to decline, indicating a decrease of volatility and preparation for a new vector impulse of price movement. Despite the closing of yesterday’s daily candle below the opening price and the formation of a pin up, market purchases were slightly higher than sales, namely 51.2%. After the fall of Bitcoin price on 24 May, buyers were able to correct it by about 50% within two days. It was quite a weak correction, given that the price is in one of the most liquid ranges in Bitcoin market.
If we take into account the volumes with which sellers tried to break the range $8650-8860 yesterday, then we see that they clearly do not have the strength to do so. The passivity of buyers can be explained by gaining positions for a successful attack of the intermediate range $9200-9400 and complete depletion of sellers at local highs.
In the 4-hour timeframe, buyers did not allow to update the local low, which hinted at an attempt to break the black wedge today:
Breaking the upper trend line, Bitcoin price will begin to grow more actively. It is likely to slow down before the range $9200-9400. In this range, we will analyze how strong buyers are and whether this growth can be seen as a new impulse with a claim to break $9700 and a test of $10,500.
BTC’s dominance in the crypto market stopped falling at 66.5%:
On the chart we see that for the third day there is a change of mood regarding BTC. And such a slowdown may be a good prerequisite for the start of growth in Bitcoin market.
In addition, the mood of market participants demonstrated itself in their marginal positions:
As we can see, buyers were finally able to organize the trend on the chart of their marginal positions. In such a way showing an increase in confidence in the growth continuation. Sellers continue to be in consolidation and do not increase their marginal positions even during the fall of Bitcoin price.
Given the above, growth continuation with the first local target $9200-9400 and the global $9700 is more likely. We expect confirmation of this scenario from buyers today and the price exit from the black wedge on Bitcoin market.
Image Courtesy: TradingView