How long have market participants been waiting for such growth, but at the time of its beginning, few people managed to catch it. Buyers managed to break through the global trend line, which once formed the triangle, in which the price was traded within 4 months, starting from July 2018. This trend line once kept the price from falling. This time, buyers were able to cope with it fairly easily. All that the sellers have been able to do is stop the price around the trendline for some time:
We also paid attention to how skilfully buyers showed weakness with the help of candles with pins and small volumes under the trend line, and how after these candles growth continued aggressively. In the previous analysis, we forecasted growth up to $7,100, but after the test of this price, the volumes of the trades increased significantly, which shows us the possible change of power between market participants:
However, if we analyze weekly and monthly timeframes, the ratio of candles and their volumes is paradoxical. For example, at weekly timeframes, there seems to be an impression that sellers in the market do not exist and if the number of buyers increased at least 2 times at the moment, then the price would be about $10,000:
The mood of buyers changed for a few days. And it changed dramatically:
Sellers partly closed their positions, but the main trend remains increasing:
If you make changes to the wave analysis after breaking $7,100, then we predict a price stop at the point $8,400-$8,500:
The third wave of growth continues and after its completion, we expect a small correction to $6,400-6,500. If the forces of buyers do not leave them and they will keep this price zone and then growth will continue with the first target to $9,400-9,500. Buyers confidently grabbed the initiative and the main critical point of $6,400-6,500. Despite the fact that all indicators indicate Bitcoin overbought, the index of fear and greed continues to stay at the level.
To support such a sharp and powerful trend, a wave of new interested buyers is needed, which will increase the volumes and stabilize the trend. Otherwise, in such a market, the market is very manipulative and can fall as fast as it disappoints all investors.
We hope the time of disappointment has passed, but will there be signals for this, of which we will talk in the weekly analysis.
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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 16th May 2019 appeared first on BitcoinNews.com.