Buyers set a new local high at $8,442, testing the upper trend line of the local channel.
Sellers become active and will try to test the range $7,550-7,800 by the end of the week.
If the weekly candle closes below $7,550-7,800, sellers will start an attack with the target $5,550.
Yesterday’s trading day on Bitcoin market ended with a stop of the sharp price growth, which lasted from 3 January. Buyers were able to raise the price in the range of 22% within 6 days. They tested the upper trend line of the local channel of Bitcoin price movement and fixed above the critical range $7,550-7,800. Yesterday, buyers attempted to break through the upper trend line of the local Bitcoin price channel, but sellers managed to stabilize the situation. The hourly timeframe shows that practically all day long, buyers have managed to move beyond the local channel.
However, after the exit of Bitcoin price, buyers stopped to pressure and formed consolidation without volumes at local highs:
Thus, after a 14-hour going around in a circle, sellers began a counterattack, closing the daily candle with the prospect of continuing the fall and test of $7,550-7,800. The probability of the fall continuation is also confirmed by increased volumes of the dailycandle. Those volumes, finally showed the presence of sellers in the market and their desire to stop the rapid growth of buyers.
The situation on the weekly timeframe is very piquant. If sellers manage to close the weekly candle below $7,800 by the end of the week, then on the chart we will see a false breakdown which will globally show that sellers control Bitcoin price:
The price closing below $7,800 will signal sellers to continue the fall with a target $5,550.
Buyers were stable during yesterday’s growth when talking about the chart of marginal positions:
Buyers continue to reduce marginal positions and fix profits but it does not help to keep the price growth trend and serves as a weak point in their attack.
However, sellers continue to reduce their marginal positions too, they are uncertain in the likely continuation of the fall:
According to the wave analysis, buyers failed to fix the price in Bitcoin market above $8,200. Buyers may have completed to form the wave (c).
Buyers managed to correct the previous fall wave by 50% from 26 October:
If buyers keep $7,800, formation of the wave (c) will continue with the next probable stop at $8,740. Let’s see what sellers can accomplish by the end of the week and tomorrow we will see their first steps.
Image Courtesy: TradingView