After the test of $6,477, buyers were able to drastically change the situation, raising the price to $7,200 in one day.
Buyers did not allow to go beyond the blue falling channel and accelerate movement to $5,550.
The local critical point for buyers is the price range $7,550-7,800.
The trading of Bitcoin price over the last three days has been quite emotional. After a three-week consolidation in the range $7,060-7,800, sellers were able to break the bottom line of this consolidation and even upgrade the local low. However, sellers could not fix below the previous local low because they encountered buyers’ resistance.
In the previous analysis, we wrote that the fall is reminiscent of a walk in a minefield and the next temporary price stop is $6,350. Sellers’ force was not enough to satisfy our scenario, as the low was fixed at the price mark $6,477. Although, the moment of mine attack is noticeable on the hourly timeframe:
After a false breakdown of the previous local low, buyers on increased volume have sharply risen Bitcoin price above $7,060 and the blue price range. Now, they are trying to fix their positions to continue growth. Sellers have tested the lower trend line of the blue channel for the second time. And the probability of this channel’s upper line test has increased.
Sellers did not prove that they had the strength to test $5,550 during the current attack. They easily allowed a sharp counter-attack by more than 10%. As long as the initiative is on the buyer’s side, the final target of this attack is $9000. If buyers fix above the yellow price zone $7,550-7,800, they will significantly increase the probability of $9,000 test.
Yesterday, marginal positions of buyers did not increase as intensively as during the fall of Bitcoin price:
It indicates that marginal buyers, during the growth, begin to gradually close their positions until they are completely closed. This opinion confirms the probability of a short-term price growth with a likely exit beyond the blue falling channel.
Sellers closed their marginal positions yesterday, but it didn’t look as sharp as their growth yesterday:
Wave analysis shows that the wave Y consists of 3 other waves a, b, c:
Wave (C) was formed quite short and is equal to 0.382 * (a). Given the sharp price reversal, there is a high probability of the completion of the fall wave from June 2019. The signal for it will be the fixing of Bitcoin price above $9,300. Nevertheless, it is a global target. Locally, we will see if buyers be able to fix above $7,550-7,800.
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