Market participants continue to get into a power play in the range $8700-8850.
Fixing below $8700, sellers will continue to fall to $8400.
An alternative scenario is the test of $9200-9400.
Yesterday’s trading day on Bitcoin market was in the expected price stop in the range $8675-8900. At the beginning of the day, Bitcoin price started growing, but the volumes used by buyers to continue their growth were much lower than on 29 April. Buyers managed to break the local mark $8850 at the 4-hour timeframe, where some liquidity was concentrated. But by the next candle sellers had lowered the price below that mark. However, sellers did not continue the price pressure, meeting the first limit orders of buyers at the mark $8675.
Thus, the range of price movement narrows, trading volumes decrease and today we will expect a new vector price movement. In our opinion, where Bitcoin price will go out of the range $8700-8850, there the local trend will continue. Currently, sellers control $8850 and we see a good density of sellers’ limit orders up to $8900. So in the near future we will expect a test of $8700 with a probable breakdown to the mark $8400.
On the daily timeframe, we see that buyers were unable to close the daily candle above $8850, creating a false breakdown up on the daily candle:
As we see the trading volumes on Bitcoin market yesterday was contrastingly small. The best scenario for sellers is to continue consolidation in the range $8700-8850 on a daily timeframe. Although, if today buyers can fix above Bitcoin price $8850, then even by small volumes they will reach the local highs $9200-9400 without problems.
If we analyze the chart of BTC dominance in the crypto market, in the last two days the indicator of dominance ceased to grow so rapidly:
Neighboring USDT dominance chart is at the key level and the probability of continued consolidation and the test of the mark 3% is quite high. It indicates a high probability of BTC correction up to $8400. The signal for it will be Bitcoin price fixation below $8700.
Yesterday in Bitcoin market marginal buyers’ positions decreased significantly. In turn, sellers sluggish but start to increase their marginal positions:
Considering that buyers are decreasing their positions in consolidation, we do not believe in the continuation of growth without correction.
Therefore, we expect Bitcoin price exit from a local consolidation. Tomorrow, we will summarize the trading results for the week and the likely scenario for the next.
Image Courtesy: TradingView