• Buyers were able to set a new local high $9418.
  • Trading volumes did not increase during the critical range test, market purchases were only 1% larger than sales.
  • The basic scenario of correction to $8650-8850 remains in effect.

The day passed according to the scenario of buyers yesterday and ended with local high update at the price $9418 in Bitcoin market. Slowly but steadily, buyers are pushing up Bitcoin price in order to fix above the range $9200-9400. At the moment, buyers have managed to confidently enter this range and trade within it for the second day.

In addition, buyers re-tested the upper trend line of the falling channel, in which the price moves from June 2019. The trading volumes yesterday do not differ by the anomalous figures. This fact means that it is too early to write off sellers and the probability of an aggressive counterattack up to $8650-8850 remains high. For yesterday, BTC’s market purchases were slightly higher (by 1%), it confirms the fact of the fight of sellers. Given that the daily candle closed with a large pin and a small body, today’s trading may be according to the scenario of sellers.

Looking at the situation locally, we see on the hourly timeframe formed liquidity in the range $9200-9300:

Bitcoin Price and Technical Market Analysis May 7th, 2020

To change the local situation in Bitcoin market, it is enough for sellers to lower the price below this range. However, the aggressive attempt of sellers to fix below $9200 ended with a sharp response from buyers. It indicates the presence in the market of a sufficient number of buyers who are not ready to let Bitcoin price down at the moment. Though, after buyers fixed above $9300 they also lack the strength. Therefore, in our opinion, the probability of continuing the consolidation in the range $9200-9400 with a breakdown and a test of $8650- 8850 is a highly probable scenario.

If we analyze the limit orders of market participants, the significant liquidity of buyers is in the range $9000 and sellers in the range $9500-9600. At the moment, lowering the price down is much easier than continuing the upward movement without correction breaking the limit orders of sellers. This is another fact for the correction of local growth.

The dominance of BTC has reached a critical level, reaching the previous high and entering the range 67.55-68%:

Bitcoin Price and Technical Market Analysis May 7th, 2020

Therefore, today’s trading in Bitcoin market may be a turning point for the coming week.

Our basic Bitcoin price correctional scenario at least to $8650-8850 remains valid. An alternative scenario of growing to $10500 will take effect after Bitcoin price will be fixed above $9400.

BitcoinNews.com is committed to unbiased news and upholding journalistic codes of ethics. For more information please read our Editorial Policy here.

Follow BitcoinNews.com on Twitter: @bitcoinnewscom
Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Image Courtesy: TradingView
Comments are closed.

Check Also

Ethereum Price and Technical Market Analysis June 7th, 2020

Ethereum market trading week passed in the consolidation range $230-246. Sellers do not ha…