Passing 20%, the weekly candle closed at $8900.
Today, the price is trading below the range $8700-8850.
If buyers keep $8400 they will have a new chance to test $9200-9400.
Yesterday’s trading day on Bitcoin market ended with an attempt of buyers to continue growth and to fix in the range $9200-9400. However, sellers in this range were stronger and the daily candle closed at $8900. Daily trading volumes are significantly lower than during buyers’ attack on 30 April. In the previous analysis, we wrote that closing the daily candle on 3 May below the range $8700-8850 sellers will have a chance to continue correction to $7700-8000. At the moment, this correction continues to be called into question. So far, we do not see the pressure for a local reversal. Sellers today continue Bitcoin price fall, breaking the range $8700-8850.
Although, looking at the hourly timeframe, fixing below this range looks rather uncertain. Globally, it resembles consolidation within the triangle:
Sellers are putting pressure on the price with the lower volumes than on 30 April. So at the moment, there is little hope for a medium-term falling trend. Considering the previous growth on Bitcoin market and the price fall now, sellers can expect a steady price lowering to $8400. At this mark it will be clear whether buyers are ready to start a new wave of growth. Exactly at $8400, buyers stopped the sharp fall from $9400. If consolidation continues within the black triangle, buyers’ chances to test again the range $9200-9400 will significantly increase.
Despite Bitcoin price fall, its dominance in the crypto market is increasing:
In this case, it shows that Bitcoin buyers are more likely to keep a price than buyers of other coins.
In general, the weekly candle closed clearly for the benefit of buyers, giving sellers no chance of correction. Given the global outlook and the local situation, a slow and sluggish price correction with the first target $8400 is the most likely scenario.
According to the wave analysis on Bitcoin the wave (Y) at the mark $8860 equals wave (W):
In this scenario, sellers were able to lower Bitcoin price below $8860 and the next critical level is at $7880. Though, in order to work out this scenario, sellers need to pass $8400, what at the moment looks problematic.
Therefore, we continue to monitor the changing forces in Bitcoin market. Tomorrow, we will analyze whether sellers have been able to increase the potential for the fall.
Image Courtesy: TradingView