Sellers confidently broke the bottom trend line of the triangle on a daily timeframe.
The volumes and the nature of the candle on small timeframes indicate that buyers are not ready to counterattack now.
A sharp reversal of sellers trend is probable from the critical point at $7,060.
The breakthrough of the triangle trend line has been confirmed and sellers continue to lower the price with the target to $7,060. Yesterday, on Bitcoin market, sellers lowered Bitcoin price a little less than 3%. The current fall looks pretty confident, calm and smooth. Buyers have come to terms with the situation and expect a new probable foothold for a global counterattack. Analyzing the nature of the fall and the volume on the hourly timeframe, it is clear that at low trading volumes during the fall, the volume of buyers during the price rebound up is even lower:
At the moment, the price has stopped in the local price zone $7,245-7,260. However, looking at the 4-hour timeframe, this stop can be without correction. And every subsequent red candle of sellers closes below. So, the test of $7,060 is a matter of time. Although, this scenario will work well if the market situation will be similar to the current one.
If you look at the daily timeframe, you can see that after two confident red candles, Bitcoin price has come to an interesting mark:
As you can see, on December 4, after breaking the mark $7,249, buyers were able to test $7,800 during the same day. So, if today and tomorrow we see a daily candle with a pin down on increased volumes, the likelihood of a counter-attack to $7,800 will increase.
Marginal positions of buyers continue to increase, aiming to update the historical high:
Looking at our main scenario of the fall continuation locally to $7,060 and globally to $5,550 and the price movement in the market, this chart lives its life. It is worth paying attention to him during the sharp price movement to see the real situation.
Sellers are also amazed, confidently closing their marginal positions for the 4th day:
According to the wave analysis, the main scenario the situation has not changed. We will consider another scenario is the continuation of price movement within the consolidation limits $7,249-7,800:
As you can see, a triangle has formed, in which is now forming a wave (d). Theoretically, we should expect another attempt of buyers to fix above $7,800. Nevertheless, this scenario will be possible with the change of forces in the market, but there isn’t even the smell of it. Let’s meet tomorrow and analyze the closing of today’s candle and change of buyers reaction to the current situation.
Image Courtesy: TradingView