Sellers managed to test the price zone $7550-7800.
Buyers are trying to organize a counterattack by raising Bitcoin price.
Closing a weekly candle below $7550 sellers will drastically change the situation in their favor.
Yesterday’s trading day on Bitcoin market ended with a test of the price zone $7550-7800. The trading volume of daily candle on 9 January was more than 2 times lower than on 8 January and it is not a good sign for sellers. As we can see in the chart, it took buyers almost a month and a half and 3 attempts to raise Bitcoin price and fix above $7550-7800. Therefore, we do not think that current volumes will pass this critical price zone. The local decrease of trading volumes on Bitcoin market began on 8 January, when buyers with limit orders stopped the aggression of buyers.
It is clearly seen on the 4-hour timeframe:
The continuation of the fall after the green candle of buyers happened by inertia. Today’s attempt to continue the fall ended with a sharp counter-attack by buyers with the target again to test $8300.
Looking at the prospect of the weekly timeframe, the situation is still uncertain. The weekly candle consists half of the candle body and half of the pin:
If sellers manage to lower Bitcoin price below $7550, the price will fall sharply next week with a target of $5550. For now, buyers are keeping the price above the critical range, but on a weekly timeframe it looks unconvincing. Closing a weekly candle in the range $8300, buyers will have every chance to continue Bitcoin price growth to $9150.
Marginal positions of buyers continue their confident and systematic decrease:
Buyers were not able to keep the green range on the chart of marginal positions. As they confidently increased positions, as well they are confidently closing them.
Sellers have been trying for 2 days to reverse the falling trend on the chart of marginal positions, but so far it looks uncertain:
According to wave analysis, sellers managed to correct the last wave of growth by 50%, but buyers are in no hurry to continue the attack. Sellers’ attempt to test $7490 this week is real enough. Let’s see if weekend on Bitcoin market will be as passive as it was lately, or will sellers be able to close this week’s candle in their favor.
Image Courtesy: TradingView