Sellers updated the local low, stopping at the mark $4000.
A quick correction from buyers allowed to test $5500 in a short time with a possible extension to $6150.
If buyers are weak, the final target of the fall will be $3200.
Yesterday’s trading day on Bitcoin market was unfortunately not the last surprise sellers prepared for us. Aside from the fact that sellers were able to update the local low twice yesterday, today Bitcoin price was below $4000. Yesterday, buyers were trying to organize a consolidation in which they wanted to recover from the lightning fall, build a foothold for correction and try to test $7500.
However, it was a strange situation that, given the appetizing price, buyers did not try to sharply buy Bitcoin. As a result, at the end of the day, sellers were able to close the daily candle nearly $4880, drawing confident continuation of the fall on the chart. Thus, in just 4 hours sellers managed to lower Bitcoin price in the market by 30%, starting from the mark $5880 to the new low $4000.
If we look at the situation in more detail, we see on the hourly timeframe that buyers are quite actively turning back Bitcoin price. But the higher the price is, the more the volumes decrease:
Buyers have now tested the previous local low and to continue their growth without correction, they need special volumes to convince everyone in the market that the falling trend is complete. We are still looking forward to another attempt by sellers to update the local low and want to see if buyers will be eager to buy Bitcoin at current prices. The current correction after the fall looks much more lively than the upgrade of $5550. Therefore, it is early to think that Bitcoin market has died, as we see volatility and volumes are particularly high now.
Margins of buyers significantly decreased yesterday. Although after today’s fall continuation, buyers began to increase them, believing that Bitcoin market has reached the bottom:
Sellers today have an ambiguous day as they initially actively increased their margins, but with sharp corrections, sellers began to reduce them:
According to the wave analysis of Bitcoin price, the global fall wave (Y) looks very powerful:
As we can see, at $5200 the global wave (Y) was half the wave of fall (W). The next important fall level is at the mark $3200. Therefore, we see that the prospect of the fall in Bitcoin market is still there. We will see whether buyers will allow the collapse to continue.
Image Courtesy: TradingView