After jogging, you should always stop, look around, balance your breathing to continue your work. Something similar is happening on Bitcoin chart now, after a sharp 16% price fall. For the second day, the price drifts near $8,330, and judging by the volume of trades, sellers will be able to continue the fall at least to $7,500. The fact is that buyers do not show themselves in this consolidation, and vice versa, they show unwillingness to take the situation into their own hands.
In the first hours after the fall, buyers began to show some dynamics. But the longer the consolidation process, the smaller volumes we see from the buyers side. On the hourly timeframe, we see the upper trend line in green colour, which sellers are carefully guarding and gradually reducing the trading range of the price, pushing buyers to the price mark of $8,330:
Thus, we are more likely to think that the fall should continue. Sellers will now exhaust those buyers who are in the market, to continue their bloody rally without any problems.
At the 4-hour timeframe we see that all attempts of buyers to start an attack are ended with large pins upwards, indicating that there are sellers who do not allow to fix above a certain price level:
The only salvation for Bitcoin buyers is to manage to close the weekly candle above $9,000. Then all this fall will be considered false and inspire unsure buyers to enter the game:
It is early to talk about the week closure, but follow the weekly candle and comparing it with other facts is important.
Bitcoin buyers are making some unreasonable attempts to change their mood and increase their margins after closing them abruptly:
Sellers are also increasing their positions in consolidation. If during a new wave of fall, sellers massively begin to close their positions fixing profits, it will indicate the approach of the end of the fall and the likely turning point:
According to the wave analysis, the situation has not changed and we expect a continuation of the fall to $7,550. Where the fall wave from 7 August will be equal to the previous fall wave from 27 June:
In addition, near this price mark is the bottom trend line of the blue channel, in which the price is traded from 27 June. Therefore, as long as the price is below $9,100, we expect a further fall.
See you soon in the next Bitcoin price analysis!
Image Courtesy: TradingView