Sellers aggressively closed the day yesterday, updating the previous local low and closing the candle with practically no pin. In general, yesterday sellers managed to lower the price of Bitcoin by almost 5%. Thus, sellers again approached the lower trend line of the triangle. In turn, buyers did not show adeptness to counter attack this time.
At the hourly timeframe, we see that as we approach the lower trend line of the triangle, buyers are quickened and begin to defend their territory, forming pins:
Locally, it looks even on increased volumes, but to stop falling does not mean to change the situation. We are terrified by the indifference of buyers in this price zone. As now, it is clearly seen that sellers broke through $10,000-10,100, fixed below it, tested the dotted trend line, above which the price has not been raised since 6 September.
Buyers can only temporarily suspend the price. If buyers do not change the strategy, there is a high probability of breaking the triangle with a sharp fall and a temporary stop at $9,400 and the next target at $7,700. However, it is too late to talk about the high probability of this scenario and let’s first see how today’s candle will close.
Bitcoin buyers’ marginal positions start closing yesterday:
Looking at the marginal positions of sellers, they are in no hurry to increase them triumphantly. But they follow whether there will be enough forces to go beyond the triangle:
According to the wave analysis, the last chance of buyers to remedy the situation is in the price mark $9,480:
At that price, a Fibonacci level 0.618 passes. If Bitcoin sellers will fix below it they actually have a free way to $7,700. Despite the fact that now this level is below the trend line of the triangle, we are more waiting for its test to choose the right scenario of the price movement. Therefore, today and tomorrow, market participants will be able to keep up with what is coming in the next 2 weeks: the continuation of consolidation or updating of local lows with the final target $7,700. Let’s meet tomorrow and we hope for clear facts!
Image Courtesy: TradingView