Buyers failed to fix above the mark $6220 for 4 days.
The main scenario of the fall continuation to $5640 remains valid.
An alternative scenario of growth up to $7880 is possible after fixing above $6340.
There was consolidation with some dangerous moments in Bitcoin market yesterday. During the day, Bitcoin price mostly moved in the range $6110-6260, sometimes generating false breakdowns both up and down. Yesterday, market participants were trading in the range $5880-6500, which is 10%. Yesterday’s trading volumes were more like a correction. Although, compared to the volumes during which Bitcoin price was actively growing, the current trading volumes are much lower. The consolidation, in which Bitcoin market has been around 3 days, has emerged as dramatic changes in local highs and lows.
Sellers expecting the price growth begin to sell aggressively. And buyers expecting the price lowering are buying aggressive as well. This situation is noticeable on the hourly timeframe:
Nevertheless, our main scenario remains valid and we continue to expect the price lowering in Bitcoin market. The first fact is the volumes mentioned above, which show a significant reduction of buyers aggression. The second fact is the weakness of buyers above the mark $6340 on the daily timeframe, we wrote about in the previous analysis:
As we can see on the daily timeframe, for 3 days buyers are not allowed to fix above the mark $6220, but the false breakdowns have taken place. Sellers managed to suspend growth on a daily timeframe. And now the key zone is under the impact of $5200-5500 where most of the liquidity has been collected. After every breakdown up, buyers reduce their chances for an alternative scenario to $7880.
Buyers’ margins have increased slightly over the last two days:
Sellers have suspended their marginal positions decrease and are beginning to increase them:
According to the wave analysis in Bitcoin market, yesterday buyers corrected a new wave of fall by 61.8%, where the strong impulse went down:
Sellers are now trying to fix below the level 0.382 which passes at $6120. If this attempt is successful, sellers will start a new impulse with a target $5640.
Let’s see tomorrow whether sellers will be able to continue Bitcoin price fall and whether buyers will stand at $5640.
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