The 5-week consolidation of Bitcoin price continues.
During the week, both buyers and sellers tried to get out of the consolidation range $7,060-7,650.
As long as the price is below the range $7,500-7800, the advantage remains on the sellers’ side.
The trading week on Bitcoin market ends with no major changes. Throughout the week, Bitcoin price moved in the 7% range within the consolidation range $7,060-7,650. A week has begun with buyers’ attempt to move beyond the consolidation range. The attempt was well-grounded, as the previous week candle closed pretty favorably for buyers’ attack. However, a false breakthrough and a sharp counter-attack from sellers is the final result of buyers’ attempt to go beyond $7,650.
Sellers also failed to break through the bottom line of consolidation. So locally, Bitcoin price has continued to be in the consolidation range for 5 weeks. Globally, after breaking through the critical price range $7,550-7,800, sellers do not allow price closure within 5 weeks even within this range. It speaks about sellers control of the market situation and the likely exhaustion of buyers before the fall continuation.
In previous analyses, we wrote that time is not working for the benefit of buyers. To change the situation, buyers had to fix themselves above $7,800 this week. Although, buyers do not have the initiative and the chance to continue falling is much higher.
The trading volumes this week also showed no significant changes. Bitcoin market has stopped and is preparing for the next move.
Marginal positions of buyers this week decreased:
A significant decrease in the margins of buyers occurred yesterday. Moreover, this decrease lasted only for 1 hour:
Analyzing what happened with Bitcoin price at this time, we can see that sellers on increased volumes tried to sell the price down on buyer limit orders:
The volume during this battle was big. It is likely that buyers who increased their positions during the month found the opportunity to close their part without significantly lowering the price.
During the week, sellers tried to increase their marginal positions. However, at a time when buyers have sharply reduced their marginal positions, sellers have also decided not to stand out:
According to the wave analysis, Bitcoin price continues to drift between the two levels of Fibonacci 0.5 and 0.618, which formed a consolidation range:
When the mark $7,060 is broken, sellers will continue their movement to $5,550. With a breakthrough of $7,650, the next buyer stop is at $8,200. See you in the first week of the new year!
Image Courtesy: TradingView