Tranquility and passive Bitcoin price movement are behind. The consolidation triangle in which buyers and sellers clarified their relationship for 3 months was broken. In our previous analysis, we wrote about the passiveness of Bitcoin buyers and our expectations about the test of the price mark $9,480. However after breaking the triangle’s trend line, sellers had no plans to stop. Thus, yesterday, sellers were able to lower the price by 17%.
On the daily timeframe, apart from the sure red candle, which has a small pin, we see that the price stopped near the mark of $8,330:
Sellers confidently broke through the price range of $9,100-9,300 and now, a consolidation has begun. From this consolidation buyers will try to test this range. To keep falling to $7,500, Bitcoin sellers have to keep the price range of $9,100-9,300, just as they kept $10,100.
The timeframe shows that all the rally actually lasted two hours, of which the first candle was broken on a big volume and without a pin. Sellers, with the help of the second stud, groped a local bottom, near which the price could slow down for a while:
Counter-attack of buyers to $9,100-9,300 is unlikely yet, as sellers easily stop buyers attacks even on increased volumes. Though, if after several attempts by sellers to keep below $8,330 leaves the trace in the form of pins, the test of $9,100-9,300 is inevitable.
Buyers’ marginal positions have decreased significantly yesterday:
So far, they were not able to keep the purple zone to continue the up trend. So, the prospect of continuation decreasing buyers positions is quite high.
Sellers are also closing their marginal positions, but not as aggressively as buyers:
According to wave analysis sellers should continue their way to the price mark of $7,750. In this case wave (Y) will be equal to wave (W):
In this price mark, the end of the fall and the correction wave of growth from December 2018 is possible. Therefore, we expect the revitalization of Bitcoin buyers and a serious confrontation in the price mark of $7,750. If sellers do not stay in this range for a long time, then tomorrow we will analyze the probable next targets of the price fall, if $7,750 will be broken. Keep your hand on the pulse of Bitcoin price with us!
Image Courtesy: TradingView