Sellers broke through the critical point $7,060 on the 4-hour timeframe.
The next local stop of Bitcoin price is at the mark $6,350.
Provading steady volumes growth and buyer aggression, the final target of the fall is $5,550.
Sellers did not like the idea of continuing consolidation within the black channel and the prospect of a local trend changing. Yesterday, sellers managed to break $7,060. There, they increasing the chances of a global target test of Bitcoin price $5,550. It happened just after a failed attempt by buyers to break local consolidation and fix above $7,200. The 4-hour timeframe clearly shows a beautiful breaking candle with significantly increased volumes, which should signal to other sellers to get involved.
Thus, sellers quite easily got into an interesting local zone, from which the price was pushed off in the period 22-25 November and buyers started their counterattack. The daily timeframe shows beautiful pins down. The present candle looks much more confident than its predecessors:
If sellers continue to gain acceleration, aggression and ambition, then they will be able to pass $6,300. We see from history that around this price point, there is a rather serious consolidation, after which sellers triumphantly tested $3,230. However, considering the nature of the fall, sellers will cease to be so confident after the first serious resistance from buyers.
Oddly enough, even the breakthrough of the critical point $7,060 reflects positively on the chart of buyers’ marginal positions:
This situation starts to get annoying and confusing.
Sellers have also substantially increased their marginal positions today. It indicates that they open marginal positions precisely during the price fall:
According to the wave analysis, sellers were able to break through the level of Fibonacci 0.618 and the next local price stop is at $6,350:
Sellers are trying to continue to form a wave (Y) and after today’s breakdown, the week should continue to benefit of buyers. However, in tomorrow’s analysis, we will look at how real the breakthrough of $7,060 was on the daily timeframe. And also, whether or not buyers are preparing a trap for sellers.
Image Courtesy: TradingView