In the midst of the working week, market participants have decided to organize slow price dance in the narrow range of $10,150-10,300. Yesterday’s attempt to break through $10,300 ended deplorably for Bitcoin buyers. During the next attempts, the price did not cross this price mark. Thus, sellers have shown control over this price mark. An interesting situation happened today on the hourly timeframe:
As we can see, sellers were unable to get out of the narrow corridor of consolidation. At the same time, the volumes increased and the candle which formed with a pin showed that there was already buyer territory. Pay attention that the consolidation breakthrough attempt was on identical increased volumes as in case of $10,300 breakdown attempt. In our view, it means that consolidation will continue because, although volumes are increasing over the range, they are not big enough to create a trend movement.
On a daily timeframe, we see a slowdown of sellers fall, accompanied by low volumes. It confirms the theory of the continuation of consolidation:
We also drew a local trend line of buyers from 29 August. If buyers keep it by our main scenario, will be the growth continuation to $11,000.
In the chart of Bitcoin buyers’ marginal positions, we see that locally buyers close their positions after strong growth:
However, look out for the purple zone which buyers couldn’t control. Now, they have this chance. In that case we will expect a steady increase in both the price and the marginal positions of buyers in a few months.
Sellers continue to be mysterious and do not show their mood. At least in their marginal positions it is hard to see:
According to the wave analysis local consolidation occurs between the two Fibonacci levels 50% and 38.2%:
We are waiting for the price exit from consolidation and the continuation of the wave (d) formation in the global triangle. We wrote about it in the last Bitcoin analyses. Let’s have patience and do not lose hope for a strong movement which always begins when no one is waiting.
Image Courtesy: TradingView