What can be done in an hour? Have a great lunch with a nice person, run 10 kilometers for your pleasure or 20 kilometers, running away from the police. In the crypto world, 1 hour is enough for the sharp movement of the main crypto coin by 6%. And also the market’s determination of the future price movement in the short term perspective. Bitcoin sellers have been able to prove that they are more powerful by breaking the triangle. Namely, the blue trend line down on increased volumes, as we wrote in the previous analysis.
We expected this yesterday, but it happened. Therefore, the attack of buyers which lasted from 27 July ended and began a correction. The correction at the moment has stopped before the local price mark USD 11,270. At this price, buyers were able to keep the situation in their favor on 7 August, but this time, we think that the price will continue to fall to USD 11,100 at least:
We see in history that the price mark USD 11,100 was a problem for buyers, so at least we can count on a stop.
After breaking the blue trend line down, we have not noticed any struggle on the part of Bitcoin buyers. So, for now, we reject the option of a false trend line breakdown.
The mood of buyers confirms that now they are not ready to fight and close their marginal positions:
By the way, the prospect of closing of marginal positions is quite big, as Bitcoin buyers have steadily increased them since 2 August.
After breaking the triangle, we cannot say that sellers feel confident. At any rate, their marginal positions say they need more time to be confident:
According to the wave analysis, we see that buyers corrected the previous fall by 78.6%. If we consider that this growth wave consisted of 3 waves, then wave (c) = 1.618 * (a). Considering the situation, we believe that after the unsuccessful attempt of buyers to break through the upper trend line of the black channel, now it is sellers’ time with the first target of USD 10,550:
The last thing we want to bring to your attention is the situation on the weekly timeframe. Now, we have already seen 4 false breakdowns, after which the price closes below USD 11,500:
At the weekly timeframe, the fall has not even begun. But the situation shows that globally up to USD 7550, sellers have a real prospect of movement. Let’s see how the weekly candle closes and whether sellers can continue their fall without consolidation. See you at tomorrow’s Bitcoin analysis!
Charts Courtesy: TradingView