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Trading volumes decrease with each growth candle.
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Sellers are weak in the price zone of USD 7550-7800.
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After fixing over the mark of USD 7800, the next target of buyers is USD 8800.
Yesterday’s trading day on the market ended with Bitcoin price growth by 5%. It is quite easy for buyers to raise the price in the local price zone of USD 7550-7800. So far, sellers are not at all opposed to growth and it gives buyers a chance to continue their trend. If buyers can easily fix above this range over the weekend, then in the future we will not consider this price range as a critical point. Yes, in history it was of key importance to buyers, but now the interest in it has disappeared.
If we analyze the volumes on a daily timeframe, we can see that with each successive candle, volumes are falling. The current attack of the yellow range is on rather low volumes. However, if we look at the situation on the 4-hour timeframe, we can conclude that this situation is due to the weakness of sellers:
As we see buyers move peacefully in their channel and after every move of buyers, sellers do not respond. Therefore, a smaller timeframe reaffirms our opinion of sellers’ reluctance to resist and the likely continuation of growth with renewed force from next week.
Even the fall to USD 7550 will not cross out the above scenario.
Buyers have been steadily increasing their margins, showing their great mood and belief in the growth continuation:
Considering that for the 4th-day buyers are trying to pass USD 7550-7800 and marginal positions are increasing, buyers are in a risky situation. As buyers become more active and the price goes out of the yellow range, sellers can start to panic close their margin positions, aggravating the fall.
If you analyze the marginal positions of sellers, then the situation is worse:
There is no common mood among sellers and the movement of the marginal positions indicator stopped in a narrow range.
According to wave analysis, the situation remains unchanged. If you look at the situation both globally and locally, the critical points coincide in Bitcoin price points USD 7880 and USD 8800:
At these Bitcoin prices passes the level of Fibonacci, which were held in one case from the end of June and in the other case from the end of October. Given the favorable conditions for growth now, the next target of buyers should be USD 8800. Let’s see if next week buyers can cope with this target. Tomorrow we will sum up the results of the weekly and monthly price movements in the Bitcoin market.
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