Sellers are trying to fix below the local price range $7120-7200.
At the hourly timeframe buyers’ attempts to counter-attack seem sluggish and without volumes.
If Bitcoin price fixes below $7060, the global target for sellers will be $5550.
On Christmas Day, there was no miracle in Bitcoin market. Taking advantage of the small trading volumes, sellers decided to try to continue their fall and fix below the local blue price range $7120-7200. In the previous analysis, we wrote that after consolidation in this range, buyers managed to test Bitcoin price zone $7550-7800.
Therefore, the current blue range test should show us whether buyers are willing to keep the price and do another attempt to break through $7550-7800. At the 4-hour timeframe, we see that the current attempt to continue the fall ends with a large pin. However, looking at the hourly timeframe, we see that the aggression from buyers is not visible further:
After the red candle on high volumes, buyers are trying rather slowly to create a counterattack. Each subsequent buyers candle closes in smaller volumes than the previous one. Therefore, despite the uncertain closing of the 4-hour candle from sellers side only mean temporary weakness. Another attempt to break through the price zone $7120-7200 is probably.
We see a significant decrease in trading volumes on the daily timeframe. But we think it is because of today’s holiday. That’s why, we will concider tomorrow’s price and volume movements as a basis.
Marginal buyers’ positions have gone beyond local consolidation limits and have decreased today:
For the time being, it does not seem to be a panic. But let’s see how buyers will react to the aggressive fall of Bitcoin price.
Sellers have partially increased their marginal positions. Although it does not look as significant as a decrease of buyers’ positions:
Sellers managed to correct the growth of Bitcoin price from 18 December by 38.2%. Sellers are now trying to fix below this Fibonacci level to continue moving to the next one at the mark $7060:
Globally, the situation on the wave analysis in Bitcoin market remains unchanged for 5 weeks. The price moves between the two levels and in case of breaking $7060 sellers will be able to continue falling to $5550. As long as the price is below $7550-7800, the advantage remains on sellers side. Let’s see tomorrow if buyers can catch up for what they have lost today.
Image Courtesy: TradingView