Bitcoin Price and Technical Market Analysis June 3rd, 2020

• Sellers sharply responded to the growth to $10,400 with a local low $9150.

• The critical point for buyers is the mark $9000.

• Fixed below $9000, sellers will have the prospect of the fall continuation to $6900-7000.

Yesterday’s trading in Bitcoin market quite sharply reminded us that we should not forget about sellers. During the day, Bitcoin price fell by almost 11%, covering the achievements of buyers on 1 June. The price fall was quite rapid and sharp. In just 5 minutes, sellers lowered the price to the range $9200-9400, where they met with limit orders of buyers. Trading volumes were increased yesterday.

Market sales were 57.4% yesterday. The price returned to the triangle, which was broken by buyers on 1 June. So far, the trend of buyers remains strong and the critical point continues to be in the range $9000. As we wrote in the previous analysis, the lower trend line of the triangle passes in this mark. Breaking through it, sellers will be able to break the local growth trend and increase the probability of a correction of the price growth from 13 March.

If we analyze the 4-hour timeframe, we see that the local trend line that buyers have been keeping since the beginning of the slowdown of the price growth has stood:

A false breakdown with a large pin gives buyers a chance after the consolidation continuation continue the price growth in Bitcoin market. Therefore, sellers should not waste time to continue the fall and test $9000. Otherwise, buyers will increase their positions at local lows and will have additional fuel to continue their trend. Having fixed above Bitcoin price $9550 buyers will give a signal of readiness to continue a wave of growth.

If we analyze the mood of market participants, we see that yesterday buyers behaved confidently and did not reduce their marginal positions during the price fall:

At that time, sellers were reducing their marginal positions, although the price was at an attractive point to begin the correction. If sellers increased their margins on this fall, it would be an additional fact to think about continuing the price fall to $9000 at least. However, so far the probability of continued growth is higher, provided that for some time the price will be traded in consolidation.

On BTC dominance chart, we see that yesterday’s daily candle “swallowed” the previous two:

Thus, the dominance indicator is gradually approaching the lower trend line of the triangle with a mark 65.3%. If BTC dominance indicator in the crypto market falls below 65.3%, Bitcoin price will fall to $6900-7000. Let’s see whether sellers will be able to continue their plan in Bitcoin market. Tomorrow, we will analyze whether buyers have the prospect of the growth continuation to $11,000.

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