The middle trading week in Bitcoin market is behind. Today, buyers managed to defend the lower trend line of the blue channel and make a foothold for counterattack. As we can see in the daily timeframe, sellers have been actively trying to accelerate the fall for 5 days, going beyond the channel of Bitcoin price movement. These attempts, backed by increased volumes, have failed. Now buyers are trying to realize their chance to change the local trend. They are fighting for the first critical point $7,550-7,800.
This price zone, highlighted in yellow, has been a solid support for buyers since June 2019. Today is the first day of attack this range by buyers and if by the end of the week we do not see confident breakdown, then the price fall will significantly accelerate.
At the 4-hour timeframe, we see reversal figure and a new impulse of growth which began after a false breakdown:
In the previous analysis, we wrote that sellers are becoming weak and their aggressiveness in this price zone has changed significantly. Buyers in the recent consolidation have taken away the last sellers who prevented starting the fight for $7,550-7,800 and went on the attack on increased volumes.
Buyers marginal positions continue to increase. It indicates an increase of confidence of market participants to continue growth.
Sellers are reducing their marginal positions for the third day:
Today, it all started with their increase, but probably the daily candle on the chart of sellers’ marginal positions will close in red.
According to the wave analysis, buyers have coped with the first level of Fibonacci 0.236 . Now they are going to the next one 0.382, which is at the price mark $7850:
However, it is a local target. Globally, if buyers manage to fix above $8,780, we tend to think that buyers are likely to break the upper trend line of the blue channel.
At the moment, the weekly candle is half the size of the previous one. But closing the weekly candle at least near Bitcoin price $8,500 will completely negate the sharp fall of the previous week. We will see if buyers take this chance and tomorrow we’ll analyze whether they will conquer the price $7,850.
Image Courtesy: TradingView