Buyers managed to fix themselves above $7550-7800 this week.
Marginal positions of buyers sharply decreased this week.
With the close of the weekly candle above $7800, buyers have a great chance to continue growing to $9050-9370.
Bitcoin trading week ends with buyers fixing above the price range $7550-7800. The first two days of the new week began with a sharp growth of Bitcoin price by more than 10%. By testing the upper trend line of the local growth channel, buyers stopped the aggression and allowed buyers to express themselves.
However, the price decrease during 8-9 January was more corrective as sellers failed to lower the price below the critical range $7550-7800. Thus, on 10 January, buyers absorbed two previous candles of sellers on the daily timeframe. And they started a new attack with the target of exiting from the current channel of movement of Bitcoin price to accelerate growth.If we take into account the trading history from October 2019, we see that during the price growth on 8-9 January, trading volumes were increased.
This fact and the fact of keeping the price zone $7550-7800 talk of the serious intentions of buyers to test $9050-9370:
This price zone is above the global falling channel, but it is the next critical point in Bitcoin market. In July, sellers took 84 days to break this price zone down. As a result, Bitcoin price falling continue to $6500.
Alternative scenario is only possible after sellers fixing below $7550.
The weekly candle is currently in favor of buyers:
If nothing changes in a few hours, next week the growth in Bitcoin market should continue.
If you are analyzing the movement of the marginal positions of buyers this week, we see no less dramatic their decrease than the previous growth:
The prospect of closing the marginal positions is still before the purple zone.
Sellers margins also decreased during the week, re-updating the historical low.
According to the wave analysis, we see that buyers have corrected the previous wave of fall (Y) by 50%. In such a way, giving themselves the prospect of continuing growth to the next level of Fibonacci 0.618:
The critical point of buyers is $7800, which passes Fibonacci level 0.382.
Given the situation, the attempt to continue growth and test of the upper trend line of the black channel is quite real. We will check how this scenario works out next week.
Image Courtesy: TradingView