Buyers tested an important price range at $7,550-7,800 without waiting for new week.
Trading volumes during the current growth are lower than during the previous one.
If Bitcoin price will fix above $7,740, the next target is $8,600.
Yesterday’s trading day on Bitcoin market ended with a breakdown of the consolidation corridor and the test of the important Bitcoin price range $7,550-7,800. Buyers decided not to wait for the start of next week and continued their local attack, perfectly closing the week candle. As we can see on the 4-hour timeframe, Bitcoin price growth was on increased volumes.
However, all in comparison. If you look at the volumes of consolidation and compare them with the volumes during the price growth, then the volumes look really increased. Although when comparing the current growth volumes with the growth volumes from 18 December, it becomes clear that the current attack looks a little weaker:
If buyers do not increase the degree of their aggression along with the volumes, then we are waiting for further consolidation between the price marks $6,800-7,800.
Continuation of Bitcoin price consolidation in this range is more beneficial to sellers than buyers. Please note what happened with the price at the first meeting with the range $7,550-7,800:
Initially, buyers controlled and after a false breakdown, there was a sharp price growth. Sellers are now showing us that this price zone is now under their control. And to deny this information buyers need to fix above this range as soon as possible.
Marginal positions of buyers continue to be in consolidation and have not reacted to the test of $7,550-7,800.
Sellers have again updated the historical low and continue to close their marginal positions. It is strange that sellers do not try to enter the position and do not consider the price range $7,550-7,800 as a support for another attempt to fall. It indicates their uncertainty at the moment:
According to the wave analysis now the correction wave is continuing its formation. It has so far corrected the fall wave from 28 October by 38.2%:
If wave (c) is able to continue its formation above $7740, then the final growth target is $8,600. Let’s see if buyers can fix themselves above the price range $7,550-7,800 this week. Tomorrow, we will see the first results of the test of this range.
Image Courtesy: TradingView