Buyers raised Bitcoin price above the critical price zone $7,550-7,800.
Sellers continue to react passively to the situation, defending themselves with limit orders.
The next stop of buyers is at the price $8,200.
Slowly and confidently, buyers continue to raise Bitcoin price higher. Yesterday’s trading day on Bitcoin market ended with a price growth of almost 6%. Buyers managed to close the daily candle with practically no pin, given that the price stopped in the yellow range $7,550-7,800.
Today, buyers have already managed to move beyond the critical price zone, but growth in the Bitcoin market becomes more difficult. If you compare the previous daily candle with today’s one and look at volumes, it becomes clear that practically at equal trading volumes, the length of candles is radically different. It talks about seller protection with limit orders which help to slow down the price.
Analyzing the hourly timeframe, now there is no danger for buyers:
Yes, there is a price stop, but further counter-attacks from sellers do not start and buyers continue their growth. If today’s candle confidently closes above the price zone $7,550-7,800, the probability of continued growth in Bitcoin market will increase even more.
The current outlook for growth does not particularly inspire confidence in the hearts of buyers. If we analyze the chart of marginal positions of buyers, we see that they respond with a confident closing of margins to the uncertain closing of Bitcoin price:
If we look closely when this steady growth of buyers’ marginal positions began, we will notice the date 24 November. It is on this day that the price got in consolidation. Throughout the consolidation, buyers have been increasing their marginal positions. The main price range where the price spent the most time was at $7,120-7,350:
Accordingly, most of the marginal positions were gained in it. In this case, closing the marginal position now puts most buyers in profit. And the sharp closing of buyer positions will lead to the continuation of price movement within the consolidation of $6,600-7,800.
Sellers have tried to increase their margins today. Although this one candle looks rather uncertain against the background of the falling trend:
According to the wave analysis locally, buyers continue to move to the next important level of Fibonacci at the price $8,200:
After breaking the critical level $0.382, which was at the mark $7,390, buyers sharply seized the initiative and continued to form wave (c).
Let’s see how sellers behave in the price zone $8,200. And we will decide about the prospect of a continued growth and exit of Bitcoin price beyond the black falling channel.
Image Courtesy: TradingView