Bitcoin price stopped before the local mark $7,060 with the intention of reversal and test $7,550-7,800.
Trading volumes do not indicate the fall continuation during the current attack of sellers.
Continuation of Bitcoin price trading in consolidation is the most likely scenario by the end of the week.
After an unsuccessful attempt to break through the price range $7,550-7,800, Bitcoin market locally turned its movement vector. However, over the last two days, Bitcoin price slowed its fall. Sellers’ reluctance to continue falling formed yesterday’s candle with a small body and big two-way pins. It indicates a change in the balance of power. Thus, the scenario of continuation of consolidation, which we wrote about in the previous analysis, is quite likely.
Trading volumes in the last two days have not changed compared to the previous days, which does not give any hint to continue the fall. Thereby, buyers have a new chance to break through Bitcoin price range $7,550-7,800. They will try to do it over the weekend.
The 4-hour timeframe clearly shows the moment of local reversal of Bitcoin price:
After a new local low update, sellers have come on a “mine” of buyers, which, having exploded and raised the price to $7,370. As there are a large number of sellers on the market, the price could not be fixed in this price mark. But the signal for changing the balance of forces is noticeable.
The hysteria on the chart of marginal positions of buyers continues:
We continue to pay attention that the price is practically not moving.
Sellers have stopped reducing their marginal positions and are trying to create a new trend, starting from yesterday:
According to the wave analysis, sellers failed to test the main target, which we expected – $7,060, in which the global wave Y = 0.618 * W:
However, the shift in the market is local, as we have not seen enough volumes and aggression of buyers. Therefore, to talk about the end of the formation of wave Y is obviously early. It is worth to analyze how buyers will build their local trend within the formed triangle.
Looking ahead and analyzing the weekly timeframe, we see that this week Bitcoin trading was quite passive. Despite the local weaknesses of sellers, globally initiative still belongs to them:
Let’s see if the weekends can change the situation on Bitcoin market.
Image Courtesy: TradingView