By updating the local high at the mark $5572, buyers have completed formation of the wave (X).
The current primary target of sellers is the mark $4887.
Keeping this price, buyers will open horizon of trading with the first target $5700.
Yesterday’s Bitcoin trading day ended with the closing of the daily candle at $5339. Buyers continued their attack yesterday, which began on 15 March, but failed to keep the initiative. Setting the local high at $5572, buyers hadn’t enough strength to test our Bitcoin price $5700, which we wrote about in our previous analysis. Looking at the 4-hour timeframe, we see that yesterday’s local high test was on a false breakdown.
Basically, buyers were unable to fix above $5465 and a false breakdown to $5572 was a momentary phenomenon. It can be perfectly seen at the 15-minute timeframe:
As you can see, the new impulse for growth on 17 March has not been as aggressive, voluminous and sharp as the growth on 16 March. And the price in Bitcoin market has slowed markedly.
Consolidation in the form of a triangle continues. Sellers are confidently pushing the price down to the lower limit at the mark $4887. At this point, we will check the balance of power in Bitcoin market and the willingness of buyers to break consolidation up. At the moment, sellers are pushing Bitcoin price in low volumes and it is likely that after the test of $4887, the price will turn around.
On the daily timeframe, we see continued consolidation and positioning of major trading volumes in the range $5210-5465. At the moment, sellers are able to keep the price below this range. Looking at the power of buyers, from the current price level, they are unlikely to take back control of the range $5210-5465.
Today, buyers have increased their margins quite actively, just on the 4-hour candle which tested the mark $5000:
This fact indicates buyers’ belief in a local reversal and a willingness to buy again after a terrible fall.
Marginal buyers’ positions, being at local highs, feel less confident than buyers and very passively increase their positions:
According to the wave analysis on Bitcoin market, at the above mentioned mark $4887 passes 50% correction of the rebound of the price on 13 March:
As we see sellers have a problem for the second time with the level of Fibonacci 0.382. So, reaching the level 0.5 buyers should meet sellers. Therefore, tomorrow we will analyze the test of the critical point $4887. And we see if the probability of Bitcoin price growth continuation to the target $5700 remains as high.
Image Courtesy: TradingView
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