An unsuccessful attempt of buyers to break through $7550-7800 provoked sellers to counterattack.
Bitcoin price fall has stopped in the range of previous local consolidation.
If buyers fail to fix above $7550-7800 this week the target $5550 will again be relevant.
Yesterday’s trading day on Bitcoin market ended with a sharp price fall. The foothold prepared by buyers in the form of opening price of daily candle at the mark $7535 did not help to fix above $7550-7800. As you can see in the chart, the daily candle closed below the opening price. Today, sellers have continued their local attack. After buyers touched the yellow range $7550-7800, trading volumes increased. On the hourly timeframe it is noticeable that as Bitcoin price approaches the yellow range, volumes increase substantially, both as they grow and fall:
Now the price has stopped above the previous zone of local consolidation and in fact sellers are checking buyers for the strength. For now, buyers manage to contain this attack. If today’s and tomorrow’s candles are successfully closing, we will make another attempt to break through $7550-7800:
Margins of buyers continue to be in consolidation after lightning fast growth:
The situation regarding sellers’ marginal positions continues to worsen. Even during today’s Bitcoin price fall, sellers have not been able to systematically increase their marginal positions:
At the price mark $7500 sellers had a good support for a good trade, also reduced their marginal positions.
Therefore, the mood in the market is still more conducive to continued growth.
At the weekly timeframe, we see that for 5 weeks, buyers are unable to regain control of $7550-7800:
After the triumphant closing of the previous week’s candle, buyers still have all the trumps to try to break the yellow range. However, it’s worth doing this week. Closing a weekly candle below $7550 in general will look to the benefit of sellers who professionally keep an important price range.
According to the wave analysis, we see that the correction of the fall wave from 28 October does not cross the level of Fibonacci 38.2%:
If this level of Fibonacci is broken, the next target will be $8600-8700. Let’s see what buyers will be able to do tomorrow. And whether they will have the power to prevent of the price fall continuation to the global target $5550.
Image Courtesy: TradingView