Fire is a wonderful helper, but also a terrible element in inept hands. It was the second thesis of the previous sentence that Bitcoin (BTC) buyers felt perfectly on themselves this night. In our previous article, we wrote in more detail about buyers’ games with fire. Back on 5 May, after a great counter-attack by buyers and the absorption of the previous daily falling candle, the BTC price did not continue its aggressive growth. Trading volumes decreased during the growth attempt, and when they fell, they grew. The impression was that buyers were preparing their way to retreat:
Weakness during the breakdown of $52,000 will give a clear signal for the BTC fall continuation
As we see, the 3-month consolidation in the Bitcoin market now looks less positive than it did at the end of April. The main condition for the BTCUSDT market continued growth was keeping the price range of $50,000-52,000. In the previous article, we marked this range and showed its value using the example of trades on 18-25 April. In this range, the BTC price steadily slows down, while the trading volumes are actively increasing.
For the BTCUSD price to continue to grow, the current fall wave should have been much weaker both in terms of the nature of the fall and in terms of volume. However, in fact, we see that sellers managed to update the local low. And also they absorbed all two-week efforts of buyers with 2-daily candles. This fact for us is a sign of buyers’ weakness. Therefore, at the moment, our main scenario is the test of $52,000 and the continuation of the correction with the global target of $37,500.
Note that the BTC price has stopped at the midline of the global growth channel in which BTC has been trading since March 2020.
The 3-day chart clearly shows that the prospect of the fall continuation of Bitcoin price is great. An interesting fact is that most altcoins reacted neutrally to the BTC fall. Some are even positive (updated their highs).
Formally, the BTC price has tested the bottom of the 3-month consolidation. BTC investors decided to sit out these small losses in altcoins. This can be clearly seen on the charts of altcoin to BTC pairs. Though, in our opinion, in case of confident breakout of $46,000, a considerable number of stop orders of buyers who have been collecting a large position within 3 months will be triggered. In this case, investors will go to USDT, which will provoke a powerful fall wave in the entire crypto market.
An alternative scenario of price movement in the Bitcoin market
Thus, the above scenario is pretty scary. Let’s talk about an alternative scenario in which the altcoins price continues to grow fantastic:
The chart ,for this scenario, shows the Bitcoin price should fix above $52,000 without any problems and continue consolidation within the wedge. This fact will show that sellers are not ready for a global correction. And it will be the beginning of a new growth wave in the Bitcoin market.
Therefore, for now, we are focusing all our attention on the range of $50,000-52,000. Happy trading and strong nerves!
