The revival of trading volumes on Bitcoin market started from the first day of the new week.
Sellers marginal positions have sharply increased today.
The main scenario this week is the continuation of the fight for the mark $7,060 and the test of $7,500-7,800.
The trades on Bitcoin market over the weekend were without much surprises and sharp moments. Sellers were trying to break $7,060, but all this was happening without the right amount of volume and looked more like a false breakdown of that mark. The whole week looked pretty melancholy. Bitcoin price movement seemed to be vectorial, but the fall was lazy and weak. However, the result is more important in this case. And the weekly candle closed with the prospect of the fall continuation:
The best scenario for buyers at the moment is to continue the fight for $7,060 this week and change the local trend, but within the consolidation $7,060-7,800.
If you pay attention to the volumes on the daily timeframe, in a few hours today trading volumes of Bitcoin price are higher than for example volumes of Sunday or Saturday candles:
Considering the size of the candle and increased volumes, it is confirmed that the struggle for $7,060 will continue. On the hourly timeframe, you can see the activation of sellers who are interested in continuation of the fall of Bitcoin price:
However, note how passively the price reacts to such volumes. Buyers are trying to buy the whole offer of sellers, placing limit orders and preventing a sharp continuation of the price fall. All this is above local consolidation, which is clearly visible on the 4-hour timeframe:
Therefore, if today sellers fail to seize the mark $7,060, then buyers will continue their initiative, which began on 15 December.
The mystique with the marginal positions of buyers continues and the chart again shows their increase:
Nevertheless, today sellers have decided to believe in themselves and have sharply increased their marginal positions:
It all points to an intriguing fight this week.
According to wave analysis, Bitcoin price at the intersection between the end of the wave (c) and the beginning of the wave (d):
At the moment, wave (c) = (a) and the probability of completion of this wave of fall is very high. Therefore, if the situation with volumes on Bitcoin market does not change, we will expect to continue the price drift within the consolidation limits at $7,060.
Image Courtesy: TradingView