Today, there was a small price stop in Bitcoin market. After the breakdown of the important price range $8,330-8,500, buyers found little resistance at the mark $8,070. And now buyers are trying to resist and at least organize a rollback after the fall. However, surprisingly, the passivity of buyers continues. This passivity began at the breakdown of $8,330-8,500. It was so easy for sellers to go through this Bitcoin price zone that it seemed that there were no buyers in the market at all.
In addition, even after the breakdown of this range, buyers have done nothing to check whether sellers can now keep the captured price zone. The price continued to fall slowly and without volumes. The current growth attempt looks like one of the corrections which are made after each local wave of fall from 8 November:
On a daily timeframe yesterday’s candle showed some hope for a price rebound. The fact is that when you compare candles lengths on 18 and 19 November and their volumes, it is noticeable that on 19 November, sellers had some difficulties with updating the local low and the price closed below the previous local low:
It gives hope for buyers to grow to $8,300-8,500 and check sellers for durability.
The mood of buyers is still the same and they even increase marginal positions. But according to the chart, we see a fairly passive and cautious growth of positions:
The mood of sellers is starting to worsen. Within 3 days, sellers begin to close their marginal positions, fixing profits:
According to the wave analysis, sellers managed to test Fibonacci level 0.5. Now the fall wave from 27 October is equal to half the wave which started its fall on 7 August.
As the fall continues, the next stop, where buyers will be able to resist, is at the price $7,600. At the weekly timeframe, $7,600 is also of great value, as at this mark is the base line of the probable figure “Head and shoulders”:
Without keeping this mark, sellers will soon be able to lower Bitcoin price below $6,100. Therefore, this week is quite important for Bitcoin market. We will meet tomorrow to see what sellers have done and whether buyers have a chance to make a difference.
Image Courtesy: TradingView