Buyers managed to fix above $6830 and continue growth.
The maximum target of our scenario is $7425.
By breaking the mark $6830, sellers will break the trend of buyers.
Last trading week on Bitcoin market partially changed the situation, showing a clear weakness of buyers in their territory. For more than half the time, Bitcoin price was in consolidation in the range $6700- $6830 with clear hints of a likely local trend reversal. Aggressive sales above $6830, long consolidations in the range $6700-6770 to raise liquidity and useless upside shots. In such a tense situation market participants were losing their positions because of stop orders.
The sharp growth of Bitcoin price began immediately with the first hours of the previous week. It was after the unsuccessful attempt of sellers to push the price below $5890:
Interestingly, this week started identically, following a failed sellers’ attempt to breakthrough consolidation $ 6700-6830. On the 4-hour timeframe, we built a price growth channel in Bitcoin market, in which the price has been moving since 23 March. This time buyers did not let sellers test the bottom trend line of this channel and claim a repeated test of the upper one in the range $7400-7500. Now the initiative is clearly on buyers’ side. However, to change the situation, it is enough for sellers to fix below $6830 today. Then, another candle with a false breakdown will be formed on the daily timeframe, which will complete the consolidation row.
The weekly candle closed at the price $6780 practically without pin, updating the high of the previous candle:
Buyers were able to reach an important consolidation, from which Bitcoin price began to grow from $7300 to $13000 from January 2020. Given that buyers are pushing the price up without allowing even a normal correction, we doubt that the price will continue to grow above $7500 without stop.
According to the wave analysis on Bitcoin market because of the price fixing above $6830, the previous wave structure was false and now we have corrected the scenario:
After correction of this 5-wave structure, we expect strong growth in the coming months. Though, this is a distant prospect. And now we are interested in how buyers behave at Bitcoin price $7425.
Image Courtesy: TradingView