Bitcoin trading week passed in the warm home environment of mom-consolidation, to which the price come for a visit and could not continue its movement further because of hospitality and home comfort. Since 26 September, Bitcoin sellers and buyers are clearing their relationship in a narrow consolidation. Where the bottom limit is the trend line of the triangle in 2018 and also is the price zone USD 7700-7800, and above is the price zone USD 8300-8500.

This week’s volumes were exactly for consolidation. Now is the critical moment to determine whether sellers would continue to fall to USD 7200 or the consolidation will continue. Analyzing the weekly timeframe, we see that the likelihood of a continuation of the fall is higher. Because after a steady price fall a month ago, buyers did nothing to change the mood in the market:

Bitcoin Technical Market Analysis 20th October 2019

The previous week gave hope to Bitcoin buyers to continue their growth, provided that they will continue to be active this week. However, miracles have not happened, and the lack of interest of buyers to actively buy in this range indicates the continuation of the price fall in the near future.

The 4-hour timeframe tells us about a clear price slowdown near the bottom price of consolidation price and at the same time passivity of both buyers and sellers:

Bitcoin Technical Market Analysis 20th October 2019

Bitcoin sellers have reduced the pressure and given a chance for buyers to show what they are made of. While buyers repel attacks but do not organize their own. If the situation continues the same then buyers will be exhausted and sellers without much volume push the price down. However, the double passivity of both parties gives the right to the existence of an alternative scenario and a chance for buyers to test USD 8300-8500.

As for the mood of buyers, for the third week, the marginal positions are fixed below the purple zone. It tells us about the prospect of reducing positions of buyers in the near future:

Bitcoin Technical Market Analysis 20th October 2019

Nevertheless, sellers have left the channel of marginal positions movement, on a weekly timeframe they are able to fix above the previous historic low. It may give them a foothold to continue increasing their marginal positions:

Bitcoin Technical Market Analysis 20th October 2019

According to the wave analysis, the situation remains stable. We expect a test of the next Fibonacci level, which will correct the growth wave from December 2018 by 61.8%:

Bitcoin Technical Market Analysis 20th October 2019

Therefore, the main scenario of fall continuation to the price mark USD 7200 remains valid. Let’s see if sellers can implement it next week, or whether the mother-consolidation again will not dismiss the price without a hat. See you tomorrow in a daily Bitcoin analysis! is committed to unbiased news and upholding journalistic codes of ethics. For more information please read our Editorial Policy here.

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