Buyers approached to the critical point $7,100 by passively pushing the price.
Marginal positions of buyers continue to grow, despite the great prospect of the fall continuation.
If buyers don’t keep $7,100, the next local target is $6,800.
Yesterday’s trading day on Bitcoin market ended quite calmly. Sellers with the same passive pace tried to push the price below the base “inverted head and shoulders”, which we discussed in the previous analysis. The daily candle closed above the base, but buyers are the ones who are alert. After a sharp fall on 1 December, on the 4-hour timeframe markedly formed a consolidation triangle which initially looked equilateral. However, after 3 December, it became noticeable that sellers are gradually reducing the trading range of Bitcoin price. And they are increasingly pushing the price to the base line.
Therefore, such a weakness of buyers in local critical point indicates that there is a high probability of a further price fall and a search for a new local bottom. On the 5th day, sellers have been probing the market and slightly lowering the price after the growth from 25 November:
The price is gradually approaching the critical mark $7,100, followed by a probable stop at $6,400-6,600 and a final target at $5,550. Everything seems that sellers will try to accelerate the fall and go beyond the blue channel. However, firstly let’s see how buyers will behave in such a scenario.
The mood of the buyers is surprisingly great. Marginal positions continue to increase, given the current fall continuation of Bitcoin price:
The situation is very intriguing and something big is coming.
Sellers are also trying to increase their marginal positions, but so far it has not turned into a sure trend:
According to the wave analysis, globally, if we estimate that the wave (Y) is forming now at the price $7,100, there is a critical point below which we should expect $5,550. This information has not changed from the previous analysis. If we look on the local fall wave which started on 26 October, in buyers managed to correct the fall wave by 38.2% during the recent growth:
A rather weak correction, after which the next wave of fall may not be weaker than the previous one. In the local scenario, after $7,100, the next critical point is $6,680.
Let’s see if sellers can accelerate the price fall and how buyers respond.
Image Courtesy: TradingView