After the seller breakthrough of the local trend line on April 11, the price is traded in consolidation. In a previous analysis, we wrote that the initiative passed into the hands of sellers, and we see that so far that they are not enjoying this privilege too much. Yesterday, sellers in an increased volume tried to continue the fall, but buyers were able to stop this attack and are now trying to break the price zone of $5,200-5,300:
In any case, now the price moves under the local trend line and this is a sign of weakness of buyers. We expect some time of consolidation in this price zone, after which we should see a continuation of the fall.
If we draw the second trend line from 12 April, then we see that a triangle has been formed. After breaking $5,000, sellers opened their way to $4,600-4,700 with a global target of $4,200-4,300.
If we analyze the daily timeframe, then at the moment we see a consolidation under the price zone of $5,200-5,300 and the global black trend line that buyers have been keeping since February 2018.
Marginal customer positions are beginning to increase, but not as impulsive as the price of BTC:
Sellers in today’s growth also increased their positions and it speaks to the fact that their confidence is increasing:
We also noticed that after the fall on 11 April, the buyer’s initiative and volumes fell. Note how buyers continued to grow after correction and how the growth looks like now:
Every successive attempt to grow is weaker, but the fall is always abrupt.
The current growth attempt corrected the fall from 11 April by almost 61.8%. If the current growth is considered as a correction, before the next impulse of the fall, then the wave c = a, at the price of $5,260:
In this case, after breaking through $5,000-$5,050, the first target is $4,700:
An alternative scenario of the price movement is also possible. If buyers keep the low trend line and a price zone of $5,000-5,050, the movement in a narrow channel between the black and blue trend lines is quite likely. In this case, if sellers do not stop growth to $5,300, the last critical point is $5,500.
After this critical point, the price can be stopped by price zone of $6,200-6,300. Therefore, we continue to monitor the market and expect the final signals for trading.
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About the Author: Peter Oleshchuk is a trader and technical analyst. He has spent two years studying and analyzing the crypto market. Image Courtesy: Bitcoin News