- Seller passiveness gives hope for growth continuation to local target of $8,170.
- In case of active growth continuation, the final target of buyers is $9,100-9,300.
Yesterday’s trading day on the Bitcoin market ended without much intrigue and excitement. After a sharp 11% growth of Bitcoin price on 27 November, the price stopped before the yellow range and drifts below without volumes. The situation looks like buyers have made the step to seller-controlled territory and want to see what the reaction will be. If you look closely at the 4-hour timeframe, it was only after the test of $7,550-7,800 that trading volumes immediately fell:
Locally, the situation seems to be to the benefit of buyers, as there is no hint of aggression from sellers. If the situation continues in the same vein, buyers will continue their energetic growth with the next target $8,170. As we can see, there has been a consolidation near this price mark where sellers have been increasing their positions to continue the fall. Therefore, locally for buyers, this mark can be a problem.
On a daily timeframe, the growth prospect ends in the following price zone of $9,100-9,300:
This range also coincides with the upper trend line of the blue channel. However, this growth is possible in case of active behavior of buyers in the market. In case of weak growth, the price will not grow above $8,500.
The mood of buyers is improving every day. We see a steady increase of positions on the margins chart for 5 days:
Sellers no longer feel confident after 25 November. Looking at their chart of marginal positions, it becomes clear that there is no common mood among buyers:
According to the wave analysis, we see that at the price mark $8,740 passes the level of Fibonacci. It will be the first critical point for sellers:
By capturing this Bitcoin price mark, buyers are correcting their fall from June 2019 by 38.2%. And it could be the start of the falling trend. At the weekly timeframe, buyers did not show that there was a change in forces in the market. Nevertheless, they still have 3 days. Let’s see if today, buyers manage to break $7,800 and by the end of the week to test $8,500-8,740.
Image Courtesy: TradingView