Buyers stopped their attack before the local level $7,370.
Sellers are stopping attempts to grow with marginal orders, but they do not continue the counterattack.
If buyers fix above $7,370, the next targets will be $7,690 and $8,200.
Saturday’s trading day on Bitcoin market was a bit disappointing with the result and again added a bit of intrigue and uncertainty. After a fine week, buyers have not begun to continue their attack and raise Bitcoin price today. Buyers’ attack stopped before the local level $7,370. Buyers tried to break it for the whole day only once. If you consider an attempt to continue the growth on the hourly timeframe, it becomes clear that sellers are not going to give up their positions:
The attack lasted for 4 hours. It is noticeable only on increased volumes, because if you look at the size of the candles, they do not look like broken candles. Sellers with limit orders stopped the initiative of buyers and after a false breakdown of $7,370, immediately sharply lowered the price below the level without continuing the counterattack. This moment has shown that in order to continue the growth in Bitcoin market, buyers need to continue to drain the sellers and it is likely that consolidation may be delayed.
If you analyze the daily timeframe, the dangers of Bitcoin price reversing is still unnoticeable:
Saturday’s candle seems like a small stop before the growth continuation. So, a sharp price reversal and a rapid fall for us are still an alternative scenario.
Despite the prospects for continued growth, the marginal positions of buyers have fallen significantly today, given that Bitcoim price has been moving in the narrow range:
Sellers also decided not to risk and with as much force as yesterday, they reduced their marginal positions:
Before uncertainty, some traders leave their positions to enter the winning side, so we will not consider these changes.
According to the wave analysis, the situation remains constant. Buyers stopped near the level of Fibonacci 0.382. To complete the wave (C) which began on 3 January, buyers need to fix above $7,370:
Next target is $7,690, with the potential to continue growing to $8,200.
We look forward to Sunday’s movement in Bitcoin market and summing up the week and setting targets for the next week.
Image Courtesy: TradingView