It is already the third week of a fight between buyers and sellers around the price zone of $260-280. Last week’s candle closed in that price zone, showing that buyers are losing their strength. In fact, the consolidation under the yellow price zone lasts from 16 May, and today buyers failed to attempt a breakdown of this price zone. On a daily timeframe, we see that there is a high probability of closing a daytime candle with a large pin and with the prospect of price fall to $230:
Pay attention to today’s volumes, which are almost identical to yesterday’s, but the shape of the candles is quite different.
However, the main volume of today passed during 30 minutes as shown by two 15-minute candles. During the first candle, buyers failed to break through the price zone of $260-280. At that time, sellers immediately joined the fight:
Therefore, if sellers do not give back the initiative, then we see the following prospects for price fall:
It is already the third day that the mood of the buyers is good and they confidently increase their marginal positions:
But sellers do not try to increase their positions, although their indicators are on historical lows:
The wave analysis remains unchanged. Buyers were able to break through the level of 1.618 and if sellers do not return the price to the level, the next target of buyers is $320-335:
In general, if you look at the history of prices, we can note that $260 is the lower limit of consolidation, which began in September 2017, and $360 is the upper limit of this consolidation:
In fact, the price traded for around 3 months in the range of $30. We are now on the doorstep of this consolidation. However, the week is just beginning. Will sellers allow buyers to enter the new trading range? We will follow this for a week.
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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