• Buyers were able to break through the local price mark $7,370 and to test $7,500.
  • Sellers are quite passive in responding to buyers’ attacks, allowing them to move on.
  • The critical point for sellers is $7,690.

Today, trading on Bitcoin market began with a pilot attack of buyers to storm Bitcoin price zone $7,550-7,800. The attack is called a pilot because after touching $7,550, buyers immediately ceased their pressure, forming a consolidation with sellers in the range 0.5%. The previous local level $7,370 was broken through and now buyers are fixing higher to continue the main attack.

The 4-hour timeframe shows that after a sharp move of buyers, the next two 4-hour candles were trading on minimal volumes. The candles themselves do not suggest aggression or hint on changing the local trend:

Bitcoin Price and Technical Market Analysis January 5th, 2020

If sellers do not change their behavior, it will be another signal of their weakness. It will give buyers a green light to continue the attack.

Looking at the weekly timeframe, we see that for 6 weeks, buyers are unable to control the price zone $7,550-7,800:

Bitcoin Price and Technical Market Analysis January 5th, 2020

However, pay attention to the forces of sellers. This week, sellers were unable to close the week in their favor. In such a way buyers have a chance to try to take the yellow range next week.

Although globally, as long as sellers control the price zone $7,550-7,800, the initiative is on their side.

After the sharp closing of the marginal positions of buyers yesterday, the situation on the chart has not changed much:

Bitcoin Price and Technical Market Analysis January 5th, 2020

Buyers try to increase their marginal positions, but they do it quite passively.

The situation on the chart of marginal positions of sellers looks identical:

Bitcoin Price and Technical Market Analysis January 5th, 2020

According to the wave analysis, buyers managed to fix themselves above the level of Fibonacci 0.382. Thus, continuing the formation of the wave (c):

Bitcoin Price and Technical Market Analysis January 5th, 2020

The next target, where buyers may have problems, is at the price $7,690 with a possible continuation to Bitcoin price $8,200.

Generally, the week of Bitcoin price trading showed that neither party is ready to continue the vector movement. Let’s see if buyers can turn the current pilot attack into a global turn of Bitcoin market. And how the new trading week begins, we will see in tomorrow’s analysis.

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