After the test of $7,100, buyers organized an aggressive counterattack.
Fixing above $7,500-7,800, buyers will create a new signal to continue growth with the first target $8,500.
Marginal positions of buyers have reached their historical high.
Yesterday, the movement of Bitcoin price was quite interesting and intense. Buyers and sellers manipulated the price in the range of 10%. They closed the price at $7,238 and put much more volume on it than usual. In the last 5 days of the fall, it is the first time that buyers have actually made a statement and tried to change the situation in Bitcoin market.
Yesterday’s candle marked the likely start of a price reversal and with its maximum, indicated the first problem in the way of buyers to success, namely the price range $7,550-7,800. However, let’s analyze how yesterday’s emotional growth started and what caused it.
To do this, we use an hourly timeframe, where we see that just after the test of $7,100, buyers activated:
As you can see, after the breakdown of $7,300, which was held by sellers on increased volumes, formed a consolidation which was not hopeful for buyers. However, after a false breakdown in consolidation and a slight touch to $7,100, the first hour candle fixed above local consolidation. Then there was a spectacular breakdown of the blue price zone. In fact, buyers activity lasted up to 2 hours.
If you look at the chart of sellers’ marginal positions, it becomes clear that during the glorious hour of aggression and Bitcoin price growth, sellers actively closed their margins:
It could have caused a sharp movement and a pin formed on the hour candle is a closed loss positions of sellers.
Nevertheless, globally, the margins of sellers on the daily timeframe do not like to decrease in panic. It was a local raid for emotional sellers:
With regard to buyers, their marginal positions have reached a critical point above which they have not yet fixed:
Sellers have now lowered the price below $7,300 again and are trying to fix below this mark for a new attempt to continue the fall.
According to the wave analysis, the final point of the probable local fall is at the mark $7,100:
Globally, buyers have tested Fibonacci level 0.236 that we wrote about in our previous analysis. And now, after fixing above the mark $7,800, we can confidently claim to continue growth to $8,500:
Image Courtesy: TradingView