Sellers achieved the first serious target and penetrated the range $9050-9350.
Fixing locally above the mark $9350, buyers will continue to grow to $9555.
Sellers’ next stop will be at the mark $8750.
Today, buyers were able to confidently enter the critical price range $9050-9350 on Bitcoin market. Sellers managed to lower Bitcoin price by 10% during the last wave of fall. If we consider the whole wave of fall from 24 February, then trading volumes significantly increased during the test of $9050-9350.
Therefore, the probability of the price stop in this range and temporary stabilization of the market in the form of consolidation is a likely scenario for the coming days. To continue falling and fixing of sellers below $9050, a correction is clearly needed, in order to new sellers can enter the position. If we look at the 15-minute chart at the time of the test of $9050-9350, we see that buyers are reliably protecting it and are not going to give it without a fight:
As you can see, buyers are actively placing limit orders in the range $9050-9150 with high volumes buying Bitcoin. On this basis, the maximum correction in the form of growth can reach the level $9555, testing the previous local consolidation.
On the daily timeframe so far, there is no noticeable special dynamics of buyers and potential reversal:
If buyers can close the candle at $9350, then a pin will be formed. It will be the first signal of the local Bitcoin price reversal to $9555.
If we analyze the mood of buyers, the chart of marginal positions shows that buyers are actively reducing their positions in the last 2 days:
Previously, the marginal positions decrease was more passive.
Sellers have not yet believed in the long-term falling trend. That’s why they fix profits and close margins together with the fall in Bitcoin market:
Let’s see how sellers will behave with the price growth to $9555.
According to the wave analysis, yesterday sellers managed to correct the previous wave of growth by 23.6%. Today, they continue to fall towards the next level of Fibonacci $8750:
Now continues its formation wave (Y), which at the mark $9050 in length is (A) * 0.786.
Given these facts, the main short-term scenario of Bitcoin price movement is a price rebound to $9555. However, it requires confident closure of the daily candle above $9350. Otherwise, falling to $8750 is the next step of sellers on their way to the final target in Bitcoin market.
Image Courtesy: TradingView