The weekly candle closes below the critical range $7,550-7,800.
Passiveness of sellers on weekends gives the chance to continue consolidation with new attempts to fix above $7,550-7,800.
The initiative still belongs to sellers and after fixing below $7,060 the price will sharply fall to $5,550.
This week, the weekend was quite passive in the Bitcoin market. During Saturday and Sunday, Bitcoin price was practically unchanged and volumes were abnormally low. So, the intrigue is moved to the next week. Buyers are still unable to fix above the price mark $7,550-7,800. However, looking at the last two daily candles, sellers are also not trying to reverse the attack of buyers. Therefore, the probability of a new attempt to break through the range $7,550-7,800 remains quite high.
The 4-hour timeframe shows us that Bitcoin price range is constantly narrowing and in a similar mode, Bitcoin price may be trading even by Friday:
Analyzing the weekly timeframe, we see that the current candle closes below the critical range $7,550-7,800. It gives our scenario a chance to continue consolidation. And buyers can make new attempts to break through the yellow price zone:
However, now the initiative is still on the side of sellers. They, for the second week, keep the price zone, which they tried to break through for 5 months. So, the fall continuation to the mark $5,550 is a scenario which has not lost its relevance.
Looking at the weekly timeframe on the chart of buyers’ marginal positions, we see a completely different picture:
The sharp growth of marginal positions is not at all comparable to the movement of price in the market. This resonating fact is inciting bad thoughts. If the situation develops in the same way, we will soon see a very sharp fall in which buyers will in panic close their margins.
Sellers continue to be without ambitious. It is evidenced by their marginal positions, which continue to reach historical lows:
Wave analysis shows that buyers are now unable to cope with the level of Fibonacci 0.5. If buyers fail to fix above this level, only the mark $7,060 will separate sellers from the target $5,560:
Bitcoin price movement will be important next week. If sellers continue to behave passively, then the chance to win $7,550-7,800 will increase. Nevertheless, so far, buyers’ growth looks like a correction and a test of the yellow range.
Image Courtesy: TradingView