Buyers tested $10000, raising the price for the day by 10%.
BTC’s dominance in the crypto market has reached a critical level.
Keeping $9200- $9400, BTC’s final growth target will be at $10500.
The seventh of May in Bitcoin market was completely under buyers’ domination, they managed to pass the critical range $9200-9400. During the day, Bitcoin price rose by almost 10%. The price growth with a maximum value $10,045 was supported by increased volumes. The daily candle closed almost without a pin, giving a strong signal to buyers for the probable continuation of growth.
Market purchases of market participants exceeded market sales by 21%. Buyers greedily bought Bitcoin, breaking the upper trend line of the falling channel. In fact, without any special correction, thanks to side consolidations, buyers were able to raise Bitcoin price from $6800 to $10000. Extremely aggressive growth, given the very recent fall in Bitcoin market to $4000.
In previous analyzes, we wrote that fixing above the mark $9400 will open the way for buyers to $10500. Buyers coped with the first point of this target, winning a critical range $9200-9400. Today, buyers must prove their strength during attacks by sellers who will try to cover yesterday’s daily candle.
Looking at the hourly timeframe, you can see that buyers tried for an hour to break the protection of sellers, after that Bitcoin price continued to grow:
Sellers were quite active in placing their limit orders, slowing down the price on Bitcoin market to the range $9920-10000 (it is clearly seen in the 15-minute timeframe). Sellers coped with the task of slowing down the growth of Bitcoin price, but they are not starting an active counterattack yet. Therefore, today may be a consolidation and an attempt by buyers to fix above $9920-10000. In case of insufficient volumes from buyers sellers will begin correction with the target $9400.
BTC dominance exceeded 67.55% and tested the upper trend line, from which BTC dominance began to decline:
That’s why, there is a high probability that the growth of Bitcoin will stop and funds will be transferred to other coins which have stopped in consolidation at their local highs. However, the signal for such a scenario will be the retention of buyers the range $9200-9400.
According to the wave analysis on Bitcoin market, buyers managed to extend the wave (Y), which at $10,500 will be equal to 1,618 * (W):
Because sellers no longer give signals other than price slow down, the target $10,500 is realistic enough to achieve. The only question is whether the nature of Bitcoin price growth will change tomorrow.
Image Courtesy: TradingView