After two steady days of falling, on the third day Bitcoin sellers decide to take a time out and stop the pressure before the first serious target at $7,700. Sellers gave their initiative after the stop near the price mark of $7,970. Then, after a small consolidation which happened on a 4-hour timeframe, buyers managed to test $8,148:
As we can see for the growth and change of mood in the market, candles look rather sluggish. Looking at the false breakdown we can conclude that the fall will recover and the price mark at $7,970 should not stand. In any case, as long as the price is below the price range of $8,300-8,500, for which was a few days struggle, to buy Bitcoin is risky. That is why we see the current local growth as a correction. By the end of the week we are expecting sellers to continue moving even to the possible price mark at $7,200.
An interesting situation happened on the chart of marginal positions of buyers:
We wrote in the previous analysis that buyers are aggressively buying Bitcoin during the price fall. However, after the continuation of a sharp fall with increased volumes, buyers are also rapidly beginning to liquidate their marginal positions.
Sellers also continue to close their marginal positions, but without much surprises:
In the wave analysis, we see a clear price movement from one level of Fibonacci to another:
As you can see, this time the price stopped near the level of 0.786. We also mentioned it in the previous analysis, as one, at which the price should not stay long. Immediately after testing this level, buyers were able to raise the price to the next level 0.618. So far, this is a serious problem for sellers and globally our forecast remains valid. We continue to await the formation of the falling wave which continues to correct growth from December 2018:
As you can see, the price of $7,200 is a serious level, which should show whether sellers did not lose their strength and whether buyers are bored to sit in the bushes. So for now, everything is going according to plan. Tomorrow we will look at how fast the fall can continue and whether there will be any surprises in the market.
Image Courtesy: TradingView