Today’s consolidation under the blue price zone of USD 10,500-10,600 did not give a positive result to Bitcoin buyers. All attempts of buyers ended with light touches to the price zone, and these touches were without volumes.
On the hourly timeframe, it is clearly seen that the first test still gave hope for the breakthrough of the price zone. As the aggressive candles and the increased volumes and attempts of breakdowns are also visible. However, in our opinion, the second test was merely symbolic:
We also see that after the unsuccessful attack of buyers, sellers were able to lower the price to USD 10,000. Then buyers took the initiative again and will try for the last time to break through USD 10,500-10,600.
What is going on a daily timeframe? After the false breakthrough, which took place on 15 August, for good growth, the next candle of the buyers had to be large and practically without pins in order to show the whole market that the time of sellers is now over. As a result, we saw an ambiguous candle, which indicates more that Bitcoin buyers did not take a chance:
So, a continuation of the fall is the more likely scenario with a target of USD 9300-9400.
Buyers’ mood is consistently unclear as their marginal positions are in consolidations at the highs:
Bitcoin sellers are trying to stop the avalanche of closure of the marginal positions and trying to reverse the situation:
According to wave analysis, the price is trading between the two levels of Fibonacci. And until buyers are fixed above USD 10,500-10,600 we will expect a continued fall to USD 9400 with a possible final target of USD 7500:
As you can see, the main critical points have not changed. We are waiting for the closing of the weekly candle, which looks pretty ambitious for Bitcoin sellers at the moment. Let’s see what Sunday will be like and whether it will significantly affect the whole week of trading!
Charts Courtesy: TradingView