Bitcoin price stops before new sharp movement.
Buyers continue to consolidate below the price zone $7,550-7,800.
The main scenario of the fall continuation to $5,550 remains valid.
The new trading week in Bitcoin market began with a price stop before the yellow range $7,550-7,800. Buyers didn’t try to change the market situation especially at the weekend and the consolidation mood shifted to the next week. Trading volumes, as Bitcoin price approaches the yellow range, begin to decrease and buyers don’t want to do sharp movements.
The market is slowly fading and it adds more uncertainty for choosing the price movement scenario and causes more clear signals to be expected. In the previous analysis, we wrote that such a situation could last even until the end of this week. At the 4-hour timeframe, the situation looks like buyers are still trying to test the upper trend line of the black triangle for the third time:
Although buyers are quite passive, they do not allow to close sellers’ candles without pins. And until sellers are fixed below the lower black line of the triangle (at about $7,450), the local buyers’ attack is not over.
Marginal positions of buyers have stopped in growth, stopping in the blue range, which is still the historical high:
History shows that there has been no such stable growth of marginal positions. It looks strange and very artificial. Let’s see how the situation on the chart of marginal positions changes after the price breakdown of the current consolidation.
Sellers sharply reduced their marginal positions yesterday, although the chart does not show the prerequisites:
Given these facts, the probability of the growth continuation is increasing, but our main scenario remains: to continue falling to $5,550.
According to the wave analysis, buyers continue to form the wave (c). Now, the price has stopped before the level of Fibonacci 0.382:
Globally, the current Bitcoin price growth is reminiscent the wave (Y), which began its formation on 28 October 2019. So far, buyers have managed to correct this wave by 38.2%, which is a rather weak correction.
Therefore, globally, our scenario remains valid. And locally we will see whether buyers still want to fight for a chance to continue growth at least to $8,200, fixed above $7,800, or sellers keep Bitcoin market under full control. Hopefully this week, the situation will be resolved.
Image Courtesy: TradingView