Sellers failed to take control of the range $9200-9400.
Sellers reliably protect the critical point $9700.
Without an increase in volume, buyers risk losing the initiative and repeat the fight for the range $8660-8860.
Yesterday’s trading on Bitcoin market was held in an attempt by sellers to correct the wave of growth from 25 May. During the day, sellers managed to lower Bitcoin price by 2%, setting the local low at $9352. The test in the range $9200-9400 took place at decreased volumes and we did not notice the aggression of sellers and the desire to reverse the current trend. If we compare the trading volumes on 28 and 29 May, we can see that yesterday’s volumes were twice smaller.
Given the location of Bitcoin price near the upper trend line of the triangle, sellers are still behaving quite passively. Market sales yesterday were almost 52%. However, a slight advantage in the activity of sellers did not give the desire result, because yesterday’s daily candle did not absorb the previous one even half. In this case, today buyers start their new attack with the target of breaking $9700 and test of $10,500.
In the 4-hour timeframe, we see a small consolidation above the range $9200-9400 from which buyers managed to exit up:
Although, looking at the density of limit orders in the range $9600-9700 and $10,000, we are not sure that buyers will be able to continue their trend so easily. In our opinion, the consolidation in Bitcoin market in the range $9370-9430 has not formed enough strength for buyers. As long as there are enough sellers on the market to slow down Bitcoin price with both limit and market orders, buyers will not continue to grow. Therefore, over the weekend, we will summarize whether buyers will be able to break $9700 during the current attack.
The dominance of BTC in the crypto market continues to decline. If sellers fix below 66.3%, they may abruptly seize the initiative with a target $8660-8860:
That’s why, passive and inert price growth in Bitcoin market is not what buyers now need to break the consolidation triangle up.
If we analyze the mood of market participants, we see that buyers during this week gradually increased their marginal positions:
Sellers do not believe in the continuation of the fall and systematically reduced their margins. However, we did not feel confidence in the actions of buyers, so it remains to closely monitor the breakdown of $9700 and the reaction of market participants to this event.
Tomorrow we will summarize Bitcoin price trading during the week and choose the main scenario for next week. The main scenario of $9700 test with continued growth to $10,500 is still valid.
Image Courtesy: TradingView