The long-awaited weekend for many investors has come. It is time to evaluate the weekly movement of Bitcoin price and likely scenarios of closing the weekly candle. Also, we will forecast the movement of the Bitcoin price next week.
This trading week in the Bitcoin market was marked by the price fall of almost 20%. Sellers have been steadily lowering prices every day, ignoring potential liquid price ranges. There were two such ranges this week. Exactly on Monday, sellers were able to fix below the Bitcoin price range of USD 8330-8500 and buyers were not even trying to defend themselves. A similar situation occurred during the week when sellers again without problems broke through USD 7550-7800.
The big difference in breaking these ranges lies in the volume spent on the barrier and the appearance of the candle:
As we can see, while conquering the range of USD 7550-7800, sellers had a hard time. It means that the interest of buyers is growing and a change in the local trend is round the corner.
If you analyze the Bitcoin market on the 4-hour timeframe, you can see that the two highest volume candles were closing above USD 7140, leaving only a false breakdown:
If sellers are unable to control this price mark during the next attack, it will mean the end of the local downtrend and a rebalancing of forces.
We also wish to draw your attention to that sellers have not yet been able to accelerate the fall. Bitcoin price continues to be traded within the blue falling channel.
The mood of buyers has improved significantly with the weekend:
Today, buyers have almost returned their marginal positions levels, in such a way they showed their interest.
Sellers continue to passively increase their marginal positions. However, we doubt that as they continue to fall sellers will actively increase them:
The impression is that sellers are waiting for the price growth and during the fall, fixing profits and wait for another chance to enter the position.
According to the wave analysis, buyers are trying to keep Fibonacci level 0.618:
If buyers succeed, then the level 0.318 will be at risk, which sellers should aggressively guard.
As for the weekly timeframe, the situation is clearly in favor of sellers. To change the market situation, buyers need to close the weekly candle above USD 7675. In this case, the new week can begin with a steady growth:
Let’s see tomorrow whether buyers will be able to hint at a likely price reversal. Have a good weekend!
Charts Courtesy: TradingView