Gradual fixing of the price under the price zone of $8,300-8,500 has come to a logical end. Since 11 October, there was the fight for this zone. We will not say that the fight was compelling, as Bitcoin buyers tried to fight back with “cardboard swords”. Sellers achieved their target pracyically without much effort with a help of simple systematic pressure.

After breaking the triangle down, on the hourly timeframe, we noticed an interesting fact in the price mark at $8,150:

Bitcoin Technical Market Analysis 16th October 2019

Pay attention to the volume which was needed for sellers to get out of the triangle. Then compare it with today’s volumes near the price mark $8150. Besides volumes pay attention to the appearance of candles. Today’s volume has passed at almost the same price and formed a completely inconspicuous candle. While during the breaking of the local triangle was a confident candle of sellers. It indicates a certain interest of Bitcoin buyers and and during the fall continuation the high probability of rebound will be from the price mark at $7,700.

The distribution of volumes on a daily timeframe is clearly visible:

Bitcoin Technical Market Analysis 16th October 2019

Today’s candle practically equaled the volume of yesterday, but it looks like a younger brother visually (maybe in the future we will call this pattern like this).

The situation on the chart of marginal positions of buyers has changed drastically:

Bitcoin Technical Market Analysis 16th October 2019

As you can see, the current slowdown of the price on increased volumes is caused by the active purchase of Bitcoin. The mood and belief in the growth continuation appeared. However, as it happens during the fall, you should still wait for the confirmation in the form of active green candle.

With regard to the marginal positions of sellers, they have a completely opposite situation:

Bitcoin Technical Market Analysis 16th October 2019

Today, during the day, sellers are actively reducing their marginal positions, again moving toward historical lows.

According to the wave analysis locally, sellers practically fixed under the level 0.618 and the next local stop probably will be $8,000:

Bitcoin Technical Market Analysis 16th October 2019

Nevertheless, this stop may not happen because the level is not strong enough. We continue to follow our Bitcoin scenario with the target of $7,700 with a possible continuation to the global critical point at $7,200.

Let’s see if buyers keep $7,700 by the end of the week and tomorrow we will meet for a new daily analysis of Bitcoin!

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