Interestingly, the close of last week’s candle broke the price of $8,200 without problems and updated the local high of Bitcoin. Buyers tried to break and fix above this price from 14 May. However, when they saw that sellers were weak and not trying to impose a counterattack, buyers passed $8,200 and started a new wave of growth.
The breakthrough of $8,200 occurred on increased volumes and now the price has suspended growth, testing the upper trend line of the newly created channel. Anyway, sellers don’t want to try to change something and so far their maximum prospect is falling to a range of $8,200-8,400:
If we consider the movement of prices under the magnifying glass, we can see the local price zone $8,650-8,685, which is seriously protected by buyers. Even while breaking through this zone, the price returns very fast:
At the current growth, buyers actively increased their marginal positions. Now, a part of buyers fixes the profit, however, we see that the buyers have a faith and a good mood for the continuation of growth:
After a sharp decrease in marginal positions, sellers cautiously and slowly increase their positions, which underline their passivity in the market and the position of expectation of the culmination of trades:
In a wave analysis, we wrote in the previous scenario, that after breaking through $8,300, we expect a continuation of growth in the form of the 5th wave with the first target of $9,120 and the final $10,300. At the moment, the price has not reached our first target, and while it is in the newly-created growth channel, our scenario remains valid.
Daytime candles tell us that there is a high probability of stop in the range of $8,500-8,900 until the end of the week. We see that sellers are not allowed to continue growth and buyers are cleverly keeping their positions:
It is interesting whether the consolidation of Bitcoin will accelerate the growth of other coins and whether the month candle will close promisingly for buyers. The way it looks now? It will be clear in a few days and we will talk about it in the next 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 28th May 2019 appeared first on BitcoinNews.com.