Today, the Bitcoin market is again at a serious crossroads. As we wrote in the previous article, after a failed attempt to keep Bitcoin price zone at $8,330-8,500, buyers may see a sharp fall to $6,100-6,400 in the near future. Currently, sellers are trying to storm the yellow range, which is the main buyers support since 6 June. Bitcoin price chart shows that from May to June, buyers were forced to stop the growth and buy out all sellers during the month. Only then, the growth can continue with the final target of $13,764.
Later, we see that in September, sellers were attacking this price zone. The attack was unsuccessful and buyers were able to raise the price by more than 30% in two days. Now the yellow range $7,550-7,800 is again testing for strength, but there is one difference.
Previous attempts by sellers to capture this range have released a large volume. During this attempt, we do not see much effort, firstly from buyers to change the situation on Bitcoin market:
It seems that buyers have given up and the sharp two-day shot of the price on 25 and 26 October did not force the market to change the mood.
At the 4-hour timeframe the weakness of buyers is especially visible:
Pay attention that buyers have not even been able to make a decent correction and test $8,330-8,500. The correction was in consolidation, after which the fall continued with a new strength.
Buyer mood has worsened after today’s fall, but we don’t see any panic in their eyes. And buyers are closing their marginal positions:
Despite the dominance on the market, sellers are in no hurry to increase their marginal positions and behave too restrained:
On that basis, the situation looks as if the trend needs to change, and each side behaves very carefully.
According to the wave analysis, if we consider that the first wave of the fall ended on 23 October and the second began on 29 October, then the wave (Y) = 0.5 * (W):
The next probable stop is at $7,100, but it is on condition that the aggressiveness of sellers does not increase.
We are waiting for today’s candle to close and will buyers become active in the yellow range. We will see in tomorrow’s analysis of Bitcoin price.
Image Courtesy: TradingView