Buyers managed to keep $8750 with a help of fight and great effort.
The local prospect of buyers is the organization of correction and test of $9050-9350.
The global scenario is the fall continuation with the targets $8200 and $7500.
Yesterday’s trading day on Bitcoin market ended with a sharp fall and setting of a new local low at the mark $8555. Buyers failed to keep an important price range $9050-9350 and Bitcoin price sharply reached our next target $8750. At the 4-hour timeframe, we see that buyers made little effort to stop the fall and could not even make corrections. And after breaking through the range $9050-9350, sellers were not even allowed to retest of broken range $9050-9350. Sellers tested a local low $8555 and were unable to stay in this position. And buyers were able to close the daily candle above $8750.
In addition to breaking through the critical range $9050-9350, sellers also managed to break the 3-month buyers’ trend by breaking its bottom line:
If sellers do not manage to continue Bitcoin price fall by updating $8555 within the next two days, then buyers will have a great chance to test $9050-9350. However, globally, we expect a further fall with the next local target $8200 and a further fall to $7500. On 27 February, buyers managed to stop the fall in Bitcoin market and prepare the foothold for correction of the previous wave of fall. By the nature of the growth, we see that buyers are quite weak and uncertain about this range.
On 27 February, buyers suspended a sharp reduction of their marginal positions:
Though, if you look at the chart from afar, the daily candle is almost imperceptible and looks uncertain. The prospect of reducing the marginal positions of buyers remains big, so this fact does not contradict our main scenario.
The behavior of sellers makes us think about the probable force of the present fall:
As we can see, sellers ‘marginal positions are at local lows and during Bitcoin price fall, sellers’ positions decrease. Let’s see how sellers will behave during the test of $9050-9350 and whether they will increase their margins in the long run to continue the fall.
According to the wave analysis in Bitcoin market, sellers corrected the previous wave of growth by 38.2%:
This level is considered to be strong and the organization of correction and wave formation (X) is a very promising idea for buyers. Nevertheless, there is a magic time ahead – the weekend. Let’s see if the situation changes drastically over the course of Saturday and Sunday and in the following analyzes we will form a forecast of Bitcoin price movement for the next week.
Image Courtesy: TradingView