Without much intrigue ends the trading week on the Bitcoin market. From the first day of the new week, sellers have been steadily lowering Bitcoin price and this weekend there were no miracles. Yesterday’s candle is closed ambiguously and looks very contrasting with the sellers’ previous aggressive candle. The price moved in the narrow range of 3% and buyers tried to start their attack. However, despite the volume with which yesterday’s candle closed, another chance for sellers to test USD 7120 is very big.
At the 4-hour timeframe, we see that after a false breakdown of USD 7120, buyers were able to organize consolidation above this price mark. They try not to let sellers back to the important level.
As we can see, during this consolidation, sellers twice failed to break through its lower limit and it should motivate buyers:
The current price stop may be a silent change in the market initiative. During which buyers are absorbing sellers who have remained in the market for unhindered growth in the future.
If sellers fail to go out of the limits of consolidation a few more times, we think that buyers will start their attack.
Buyers’ confidence is also noticeable in the chart of marginal positions. Where for the second-day buyers are rapidly increasing their marginal positions:
Sellers have also decided to increase their marginal positions, although it may not look as aggressive as buyers:
Interesting fact. When Bitcoin price moved in vector, sellers and buyers abstained from taking decision. As soon as consolidation came after a sharp movement – buyers and sellers saw prospects.
According to the wave analysis, the fight for level 0.618 continues:
With the intensification of sellers’ aggression, the chance of accelerating the fall is quite increasing. The following targets of sellers after fixing below the price range of USD 7120 will be USD 6435 and USD 5600. If a weekly candle closes the way it looks now, then buyers have serious problems. And the best that buyers can expect next week is the fight continuation.
Let’s meet tomorrow and analyze the movement of Bitcoin price last week and determine our main scenario.
Charts Courtesy: TradingView