After the spectacular close of the previous trading week on the Bitcoin market, buyers have a great chance of forming a new growth wave. The previous weekly candle “absorbed” the local fall wave. At the same time, buyers did not need high trading volumes for a local reversal of Bitcoin market. After such a victory, the BTC price movement should have moved vertically up this week. However, at the moment, the activity of buyers has significantly fell. This is clearly seen on the 3-day timeframe:
The global Bitcoin growth slowdown and the possible start of a correction
As we see on the chart, the last 3 candles began to slowdown in front of our target of $60,000-61,000. In addition, the trading volumes during the current local growth wave are less than during the fall in the period from 16 to 25 April. We have drawn the BTCUSDT price movement channel from 13 March, 2020. We see on the chart, the main danger for buyers will begin after breaking the middle line of this channel. The history clearly shows that the dotted line that runs in the middle of the global growth channel worked out perfectly in the spring 2020, in January 2021 and now. Losing control of this line will lead to a continuation of the fall wave in the BTC market with a final target of $30,000-33,000.
In addition, in the range of $50,000-52,000, there is a liquidity zone that buyers confidently keep within the 2-month consolidation in the BTC market.
If on large timeframes it starts to smell like a correction, then looking at the 6-hour timeframe, buyers are preparing another local growth wave with a target of $61,700:
BTC dominance and open interest falls
The chart shows that after a 2-day fall of Bitcoin (BTC) price, buyers were able to quickly return the price to the previous range. Now the price is consolidating before the previous local low. There are no active sellers on the market. So we expect the BTC market to continue to grow in the short term.
If we analyze the dominance indicator in the Bitcoin market, it continues to steadily decrease over the previous two months:
Along with the dominance, open interest in Bitcoin also decreases. So far, investors have clearly decided to trade altcoins. In such an uncertain situation, we simply watch the market and prepare for action when trading intensifies.