New trading Bitcoin price week began with growth and a test of $7,550-7,800.
Price consolidation range narrowed to 5%.
In case buyers fix at $7,690, the next target is $8,200.
The new week on Bitcoin market has started quite well for buyers. Globally, the situation remains uncertain and Bitcoin price continues to be within 2 months of consolidation. However, locally buyers are trying again to storm the critical price range $7,550-7,800. The price trading range is limited by two blue trend lines which are qualitatively protected by both buyers and sellers. Now the range of consolidation trading is up to 5%.
If you take a closer look at the consolidation process going on from 23 November, you can see an interesting situation with volumes:
Pay attention that during the first attack of sellers, volumes were high. During the second attack sellers were able to update the local low, but with smaller volumes. It’s not exactly the third sellers’ attack because neither the low update nor the volume increase was noticeable. This formation is more like a reversal. And the confirmation of it should be the breakthrough of the upper blue trend line and the fixation above the price zone $7,550-7,800. However, it should happen during the current buyers attack. Otherwise, we will expect the continuation trading of Bitcoin price in the blue triangle and probability to break $7,550-7,800 will significantly decrease.
Bitcoin market candle closed for the benefit of buyers and showed the weakness of sellers at the moment:
If you look at the situation on a smaller timeframe, you can see that buyers are gradually and constantly check their strength. Before the new attempt to test $7,550-7,800, buyers allowed to check the local consolidation range for strength:
Only after buyers were able to withstand sellers attack, began a new attempt to storm the yellow range.
Buyers margins continue to decrease gradually, it is not noticeably in the global growth background:
Sellers also continue to reduce their marginal positions, but not as aggressively as on 3-4 January:
According to the wave analysis on Bitcoin market the situation is unchanged. Buyers need to fix above $7,690 to continue the way to $8,200. Let’s see if buyers can change the situation this week and tomorrow we will analyze the result of today’s attack attempt.
Image Courtesy: TradingView