• Buyers can’t fix above $7,500-7,800.
  • Marginal positions of buyers are constantly growing and it does not correspond to the market situation.
  • If buyers do not keep $7,100, the final target of the fall is $5,550.

The new trading week in Bitcoin market has begun with the update of the local low and the test of Bitcoin price $7,206. Buyers for the second day do not allow sellers to fix below $7,340. Seller pressure has not yet impressed with its aggressiveness or increased volumes. It looks like a correction before the growth continuation. After drawing the local lows on the trend line, a new price falling channel was built with a critical point for sellers at $7,550.

At the 4-hour timeframe, we see that sellers are now testing the main figure of the technical analysis “inverted head and shoulders”, which often indicates a trend reversal:

Bitcoin Price and Technical Market Analysis 3rd December 2019

As we can see at the base, the price slowed down, so the test of $7,550 is possible. However, by visiting $7,550 again, buyers will not change the situation globally, but simply touch the upper trend line of the newly created channel. If we consider another scenario — the continuation of the fall without correction, the next local price stop is planned at $7,100. Looking closer at consolidation, we see that there is no increased volume of buyers.

Moreover, on the hourly timeframe, buyers have not kept their bottom trend line of the triangle. Sellers are trying to keep pushing Bitcoin price down, though without much volume:

Bitcoin Price and Technical Market Analysis 3rd December 2019

Looking at the marginal positions of buyers, it seems that the market has a strong growth trend:

Bitcoin Price and Technical Market Analysis 3rd December 2019

Buyers’ marginal positions are steadily increasing, indicating a belief in future growth.

Sellers are also trying to keep up with their marginal positions, but their confidence is not enough to match buyers:

Bitcoin Price and Technical Market Analysis 3rd December 2019

If we look globally at the weekly timeframe, the situation is clearly in favor of sellers. Breaking through Bitcoin price zone $7,550-7,800, sellers managed to retain control of it over the past week. As a result, the price is below the yellow range:

Bitcoin Price and Technical Market Analysis 3rd December 2019

Therefore, despite all the signals for probable growth, globally the picture looks like a probable breaking of the lower trend line of the blue channel.

According to the wave analysis, the situation is unchanged and we are expecting the test of $7,100. If buyers can’t keep this Fibonacci level, the next stop will be $5,550:

Bitcoin Price and Technical Market Analysis 3rd December 2019

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