A small holiday appeared at the beginning of the week for Bitcoin sellers. The complicated price zone $10,500-10,600 did not withstand the pressure and moved from sellers to temporary buyers property. The breakthrough of the price zone happened today and was accompanied by a significant volume increase on the hourly timeframe:
Pay attention that the price after this breakthrough did not fly up but stopped just above the broken price zone. If one looks carefully, we can see the formation of a black wedge, above which the price is not yet able to move. By the way, the present consolidation has begun just below the upper black line of the newly created wedge.
Well… if it is not a false breakthrough and buyers will close the candle above the price range of $10,500-10,600, then the next target of buyers we wrote about in the previous analysis will be $11,000. We will repeat that even with a testing this price, the probability of a continuation of the fall, which began on 9 August, is quite high.
Moreover, notice the nature of growth on the market now: a sluggish upward movement with sufficiently deep corrections. It is more the prerogative of corrective movement than impulse one.
Marginal positions of Bitcoin buyers continue to move in consolidation. But now we see that the trend is moving towards closing positions:
Buyers do not increase their positions as they grow and it indicates their uncertainty now.
Bitcoin sellers continue to close their marginal positions. The situation with the breakdown of the price zone of $10,500-10,600 caught them off guard. It is clearly seen on the chart as a sharp red candle down:
According to the wave analysis, the movement in the black wedge currently consists of 3 waves. Now, the wave (іv) should begin its formation:
If the market situation is identical in volumes, then buyers would not have to break through the upper line of the wedge and raise the price above $11,000. Given that the weekly candle is almost half consisting of the pin and half the body, this week, buyers will try to show what they are capable of. We will see how the breakthrough of the local critical point will end today? Will buyers be able to test $11,000 by tomorrow?
Charts Courtesy: TradingView