The closing of yesterday’s candle showed us that the attempt to return buyers to Bitcoin price range of $9,100-9,300 can still be interpreted as an emotional convulsion. It only checked the strength of sellers to protect their territories and give sellers with doubts more confidence.
Yesterday’s daily candle not only covered the achievement of buyers in two days but also updated the local low:
The daily candle was closed with a hint at the continuation of the fall. By equalizing the length of the candle body to the length of the pin, we understand that the pin can be ignored. Therefore, today we expect the continuation of the fall and ultimately the test of $8,500, that we mentioned about in our previous analyzes.
An interesting fact can be visible by comparing Bitcoin and Ethereum charts. In this situation, Bitcoin price looks to have less prospects of growth continuation than Ethereum price. As we can see, buyers of Bitcoin did not keep its critical point; the same can’t be said for Ethereum buyers. We invite you to get acquainted with the analysis of Ethereum today. Should we understand it as the willingness of investors to pour their assets into Ethereum while Bitcoin price continues to fall? We will see during the test of $8,500.
The 4-hour timeframe shows us that sellers are not so confident about updating the local low and leaving a chance for buyers to counterattack. At the moment, locally, buyers are gathering the strength for it in the form of local consolidation.
For the fifth day, buyers have been confidently closing their marginal positions. And today, the purple range again has not withstood the pressure:
In this way, buyers again returned positions to the limits of consolidation and the prospect of their further decrease is quite high.
Sellers are preparing for a sharp increase in their marginal positions. It can happen after breaking the mark $8,500:
In the wave analysis, we see that sellers are fixed below the level of Fibonacci 0.5. They want to continue moving to the green range with a target of $8,424. This target is close to $8,500 and it remains in our forecast.
In general, there is noticeable slowdown in prices and sellers are unable to lower the price sharply. So, a good rebound from $8,500 is likely. However, whether it is a rebound or the beginning of a new wave of growth, we will see directly during the fight for this price mark. Let’s meet tomorrow and see whether sellers can test the critical point in one day, or still stretch this pleasure by the end of the week.
Image Courtesy: TradingView