Yesterday’s trading day on the Bitcoin market was marked by increased volatility. During the day, Bitcoin’s price moved in the range of 5%. This is due to the fact that sellers managed to test the price mark of USD 8500. At the 4-hour timeframe we can clearly see that after the test of this Bitcoin price, buyers sharply answered with the test of USD 8800.
However, in our opinion, the trading volumes are too small, given the importance of the price zone of USD 8300-8500. There are several reasons for it:
1) This price zone is uninteresting for buyers and the price fall can continue.
2) Buyers are waiting for a demonstration of power from sellers to understand whether they are sufficiently exhausted and able to resist the counter-attacks of buyers.
Looking at the daily timeframe, we see that the probability of another attempt to break through USD 8300-8500 is quite high. Since the closure of yesterday’s candle is ambiguous. Therefore, the test of the price mark USD 8330 remains a priority.
Nevertheless, given the dynamics of the fall, we reiterate that decreasing of sellers’ pressure is obvious.
Pay attention that local lows began to update less aggressively as they approached the price zone USD 8330-8500. Given the formation which appeared – the wedge, buyers’ time should soon begin. The critical point is USD 8700.
Buyers’ mood has not deteriorated yet, at least it is not visible in the chart of marginal positions:
Buyers have frozen their actions and are waiting when sellers will do something.
In the meantime, sellers are in no hurry to drastically increase their marginal positions:
According to the wave analysis, the situation remains unchanged and at the price of USD 8330 the current fall wave will be equal to the fall wave which started on 4 November and ended on 8th:
The alternative scenario – if buyers manage to fix above USD 8500 and keep themselves above this price for several days, then the breakthrough of the wedge and the beginning of a new growth impulse will start faster.
Looking at the weekly timeframe next week should be a week of struggle. As the weekly candle is currently closed in favor of sellers and to change the situation next week buyers have to show their teeth. Let’s see whether buyers can make a difference this week. Meet you at tomorrow’s Bitcoin price analysis.