Sellers managed to update the local low and test the lower limit of consolidation at the price $7,131.
Globally, sellers are trying to retest the price mark $6,660 within the 6-week consolidation.
After updating the historical low, sellers are confidently increasing their marginal positions.
The first day of trading in Bitcoin market was calm and ambiguous. At the beginning of the day, buyers tried to form a trend of local Bitcoin price growth. But by the end of the day, with the help of two 4-hour candles, sellers managed to update the local low and once again test the lower limit of consolidation at $7,131.
If you take a closer look at your daily timeframe, you may notice a gradual shift of forces from buyers to sellers. Pay attention how actively buyers began the growth of Bitcoin price on 18 December:
The growth continuation and test of the critical price zone $7,550-7,800 were not so sharp. However, the attempt of another buyers attack after the correction looked rather weak. Buyers achieved fewer results in 4 days than on 22 December. Based on these facts, the situation appears to be sellers depleting buyers’ balances in the market. Now, they are preparing for a new wave of fall in Bitcoin market.
The weekly timeframe shows us that sellers globally are trying to retest the price mark $6,660 within the 6-week consolidation:
If you look closely at this consolidation, you can see that the price spends more time near the upper limit of consolidation. During the lower limit testing, buyers aggressively beat the ball to the rest of the field. This fact gives buyers hope for a future fixation of Bitcoin price above the yellow range $7,550-7,800. However, the current situation on Bitcoin market on sellers side and the test of $6,660 after the breakdown of $7,060 is very probable.
Buyers stopped lowering marginal positions, but did not renew their growth for several days:
After updating the historical low, sellers are confidently increasing their marginal positions:
According to the wave analysis, the situation remains unchanged and the fall wave (Y) is completing now. The main question remains open, namely, whether the low of this wave of fall will remain at the mark $6,660 or will sellers be able to test $5,550:
So, tomorrow we will see if sellers have been able to break out of consolidation and test $6,600 and how buyers will react. In general, Bitcoin market is still asleep and vector price movement needs volumes which are not available yet.
Image Courtesy: TradingView