The working week ended and the month ended, which gave Bitcoin buyers hope and little confidence in the change of sellers trend. So, today we will talk about the two extremes. The first one is a short-term perspective of the price movement on the 4-hour timeframe. The second one is long-term, analyzing the weekly and monthly timeframes. Tomorrow, we will summarize the results of closing another daily candle. And taking into account the facts of two analyzes we will draw the scenario for the next week.
As we can see on the 4-hour timeframe, the price remained unchanged in the price zone USD 9100-9300, which we are observing throughout the week. This zone is still a critical point for buyers and a foothold for growth continuation. Buyers cannot fix above this price zone yet. Besides, sellers have been able to return the price to the triangle red trend line which limited the growth from 26 September. Since the price is near the global blue trend line of the falling channel, in which the price has been moving since June 2019, in the short-term perspective sellers are more likely to break USD 9100-9300 down and test USD 8500:
On the monthly timeframe, we see the closing of the October candle below the yellow price zone. In addition, Bitcoin buyers failed to completely cover the previous red candle.
Thus buyers’ October candle is smaller than sellers September candle:
Trading volumes during October would have liked to be higher if buyers had hoped for the growth continuation.
If you look where the month candle has closed, which has created the last historical high, you can see that during the current attack of buyers the price again turned from the price mark USD 13,800. On the other hand, we see that in the price zone USD 6300-6800 there is a great interest of buyers. Thus, we have formed a huge range of consolidation, in which the price can be traded for a long time.
According to the wave analysis, we see on the weekly timeframe a clear wave of fall, which lasted for a year from December 2017. Also, we see a new growth wave, which began at the end of 2018 and could be a correction of the previous wave of fall or the beginning of a new global growth wave:
If it is a correction, then the correction wave has not yet finished its formation and we should wait for another impulse to USD 13,800. For now, let’s consider it as the main scenario and fixing the price above USD 9800. It is a critical point, but on the global timeframe and then we will wait for a repeated test of the price mark USD 13,800. See you tomorrow in the new Bitcoin price analysis!
Charts Courtesy: TradingView