Sellers managed to stop Bitcoin price growth in a narrow consolidation.
The critical point for breaking the trend of buyers is in the price zone $8470-8530.
The final target remains at $9200.
Today’s trading in Bitcoin market ends with a modest price movement in the range of 4%. And buyers tried to break out of the six-month falling channel. After yesterday’s enchanting attack and the test of the upper trend line of the black channel, sellers tried to counterattack. However, as we see on the 4-hour timeframe, volumes during this attempt were lower than during the growth of Bitcoin price.
The maximum that sellers have achieved is a price stop within the consolidation $8600-8850. Buyers are now near the upper limit of this consolidation. Looking at the last 4-hour candle, buyers have no intention to break through the range $8600-8850.
Analyzing the movement of Bitcoin price on the hourly timeframe, it becomes clear that, as it approaches the upper trend line, growth has clearly started to slow down and moved into a local growth channel. Buyers hope to pass a critical point and make a new sharp price jump:
The chart shows that after the price goes beyond the local growth channel, the critical point for buyers is $8470-8530. In our previous analysis, we emphasized that there was a great deal of interest in this price zone on both sides of the market. As a result, buyers proved their readiness to continue growth.
Marginal positions of buyers systematically continue to decrease:
Buyers continue to fix profits and move closer to the purple range, from where the crazy growth of buyers positions began on 24 November 2019.
Sellers have found confidence and good humor and are increasing their marginal position for the second day. They understand that the probability of the price reversal in Bitcoin market is quite high:
The wave analysis shows that the wave (c) is more powerful than the wave (a) and tends to be 1.618 times bigger. It is possible in condition of the test of $9200:
A false breakthrough from the black global falling channel is quite possible to confuse most traders, buyers and sellers. One side will consider that the global trend is broken and they need to increase positions. But sellers will start to close their positions, because their support did not survive.
Nevertheless, this is still speculation, and on the daily timeframe we see an incomprehensible candle on the same volumes. Let’s see tomorrow whether buyers can continue their growth in Bitcoin market.
Image Courtesy: TradingView