Hello to all investors and people who are interested in Bitcoin price movement. Today, we will summarize the results of the weekly Bitcoin trading and conclude whether the scenario we wrote about in previous analyzes remains valid or we will still have to make any corrections.
The week was quite aggressive since Monday. The daily timeframe shows that after the test of the lower trend line on Monday, immediately next day sellers lowered the price by 17%. Now the initiative continues to be on the sellers side.
Looking at the weekly timeframe, we can see that the breakdown occurred on increased volumes. And the weekly candle is practically without a pin, which indicates the prospect of the fall continuation:
However, will it be as lively as this week? We are uncertain. In previous analyses, we wrote that we are entering into a broad consolidation, in which the price has been for a month since 13 May. Sellers will need either more time to continue their trend or much more volume. As on the weekly timeframe, with no significant increase in volumes, we expect some price stop in this price range.
Also, the fact is that the price is now approaching the black line, which once in June formed a triangle, after which the price fell to USD 3215. It only confirms our hypothesis regarding the price drag.
Regarding the marginal positions of buyers, the situation here is exactly the same as on the Bitcoin price chart:
Buyers closed their marginal positions throughout the week.
Despite the dominance in the market Bitcoin sellers also decided not to risk. They were reducing their positions during the price fall this week:
It is worth to highlight a critical point after which will be clear where the price will move in the near future. The growth from December 2018 corrected the strong fall wave by 61.8%. Deep enough correction, but tolerable to continue the fall. Therefore, the main critical point is in the price range of USD 7200-7300:
In case of breakthrough of this price zone by sellers, we expect the price fall to continue to USD 3200. Another scenario will mean growing to USD 13,800 with the prospect of growth continuation to USD 17,700. Let’s see tomorrow how the new week begins and set daily local targets. Profitable trading and good mood in the new week!
Charts Courtesy: TradingView