Bitcoin Price and Technical Market Analysis May 3rd, 2020

• Buyers have a closed the daily candle above the range $8700-8850.

• Fixing above $9200-9400, the next target is $10,500.

• The critical point of the current trend of growth is $7700-8000.

Yesterday, there was a fight for a key local range $8700-8850 on Bitcoin market. Throughout the day, buyers were dominating, preventing sellers from even approaching Bitcoin price $8700. For the day, buyers managed to raise the price by 2.5%. Also, they closed the daily candle above the range $8700-8850. At the same time, trading volumes were lower than the previous day. Sellers continued to occupy a defensive position from time to time, counteracting with increased volumes.

At the moment, the impression is that all aggressive fighters are methodically bought up and the foothold is preparing for a new impulse upwards. However, we trust the facts which tell that until Bitcoin price is below $9200-9400, sellers have a great chance to counterattack with a target $7700-8000. For this scenario, sellers have to close today’s daily candle below $8850.

Considering the nature of Bitcoin price trading in more detail, we see a new wave of good humor from buyers:

The calm growth was twice interrupted by sharp counter-attacks of sellers with increased volumes.

Nevertheless, the local trend line of buyers withstands each attack by sellers, after which a new wave of growth began.

If you look at Bitcoin’s dominance chart in the crypto market, its impact is increasing and the probability to test 67.55% is quite high:

This factor increases the probability of Bitcoin price growth continuation, but a sharp increase of Bitcoin dominance will not mean the same sharp price growth in Bitcoin market.

Marginal positions of market participants show us uncertainty of both sides of confrontation:

After a sharp decrease of marginal positions, buyers will not rush to increase them again, waiting for the consolidation end under the range $9200-9400.

Sellers continue to close their marginal positions without believing in price reversal.

According to the wave analysis in Bitcoin market, we expect confirmation of the wave (Y) completion. Which at the mark $8800 equals wave (W):

Although, looking at the weekly candle, even closing at $8800 will not change the market situation. And the next week should continue with buyers’ initiative. Therefore, a test of $10500 – the next level of Fibonacci after $8800 is likely. While in the market, we do not feel the desire of sellers to correct the growth of Bitcoin price from 13 March. Proceeding identically, the probability of breaking $9200-9400 is much higher. The critical point of the current growth trend is in the range $7700-8000. Let’s see tomorrow how the daily candle will close and whether there will be any surprises this Sunday.

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