Congratulations to all investors and crypto enthusiasts on the start of the new Bitcoin trading week! Today we will talk about the prospects for sellers to continue the price fall. Last week, Bitcoin trading ended with a breakdown of the important $9,100-9,300 critical price zone. Yesterday’s sudden price fall gave hope to buyers, but this growth was a correction and testing sellers for strength.
As we can see from the chart, sellers have survived the test and now the way to $8,500 is open. Today’s candle has completely covered yesterday’s successes of buyers. Just as yesterday’s growth took place without much volume, today’s price fall is on the same volumes. The thing is that in the range of $8,500 to $9,100, there is no particular liquidity and interest of big players. Therefore, in this range the price can move freely without expenditures for volumes.
At the 4-hour timeframe, we see that the main activity of buyers took place during one candle. And after reaching a critical point, Bitcoin stopped lobbying their interests and gave the initiative to sellers:
The mood of Bitcoin buyers for 4 days does not contribute to the price increase. At least, we see it on the chart of marginal positions:
During the price growth, sellers closed their marginal positions, but it was not as panic as it might be. Now, sellers have motivation to increase their marginal positions.
If we look at the current fall wave locally, according to the wave analysis, buyers failed to fix themselves above the level of Fibonacci 0.382. At the moment, sellers will continue the fall wave with the targets $8,500 and $8,180:
In addition, at the price $8,180 in the past, passed the bottom line of consolidation, which continued throughout the month. Therefore, it is a serious problem on the way of sellers and at least a rebound from this mark should be. However, let’s not hurry, but first let’s see if sellers can master the price mark $8,500.
Moreover, if we look on the situation globally, at the price $8,500, sellers correct growth from October 2019 by 61.8%, which is also a strong resistance:
In general, our main scenario remains valid, and we continue to wait for Bitcoin price fall. Tomorrow we will analyze whether buyers can protect $8,500 and which volumes will be at the test of this price mark.
Image Courtesy: TradingView