It was 4 days ago when buyers managed to break through the blue channel of growth, thereby accelerating the growth of prices. After breaking through the channel, the price on small volumes stopped in the consolidation triangle. Since sellers are not trying to lower the price actively, but only suspend its growth, buyers are preparing to continue growth to $6,300-6,600.
In such a rhythm, the price can calmly move for a few more days.
If we analyze the mood of the market participants, we see no special confidence of buyers who are not in a hurry to increase their marginal positions:
Despite the fact that the price continues to grow, sellers are also confidently increasing their positions:
If we sum up the situation, we want to note that buyers feel the further end of the growth, so they do not strengthen their positions. Sellers, on the contrary, understand that the price is approaching a critical price zone and are in a hurry to enter the position.
According to the wave analysis, if we consider that the new local growth wave began after a sharp fall in 25 April, then we see that at the moment the wave structure consists of 3 waves. Wave 3 = Wave 1 * 1.618. Then we see a correction in the form of consolidation, which is inherent for Wave 4. Therefore, we predict that with a greater probability the local triangle will go up with the ultimate target of $6,600. As we already mentioned above, there is no increased volume in the present triangle, and this consolidation reminds more the road cleaning before continuation of the growth. Therefore, our global scenario, which we wrote about in the previous analysis, remains the main.
If buyers can not hold $5,700-5,800, then we will review the main scenario.
If we analyze the daily timeframe, then we see that even after such a good growth at local highs, sellers have no strength and desire to change something. The volumes of buyers are small, but the volumes of sellers are even smaller:
Summing up, we expect a further upsurge of buyers, after which we will have a good chance to analyze the real battle in the price zone of $6,300-6,600, where good volumes should appear and where it will be clear to everyone who really has the real power.
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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
The post BitcoinNews.com Bitcoin Market Analysis 7th May 2019 appeared first on BitcoinNews.com.