Midweek did not please Bitcoin traders who were stuck in new consolidation after a sharp price jerk down. Buyers were able to test and even break through the price range $8,300-8,500, but they could not fix above it. Let’s just say that once they reach this range, buyers stop trying to increase their price. In such a way, they reduced volumes. And now, on decreased volumes, sellers are trying to move toward another limit of consolidation, namely $7,700-7,800. Locally, sellers have already managed to fix below the price mark of $8,300, so the fall should accelerate soon.
The daily timeframe does not look good enough for buyers, as the likely counter-attack ended very quickly with the wrong breakdown of the first best price zone:
We also see price slowing down before the new yellow range, which in the past has given Bitcoin buyers a chance to continue their growth. Therefore, after breaking $7,700 we are not sure that the price will start to fall as rapidly as on 24 September. We will be closely following the price mark at $7,500.
For several days, the Bitcoin buyers have a mixed mood and they are moving in consolidation. We can see it on the chart of their marginal positions:
Sellers, on the contrary, have firmly closed their marginal positions to the bottom trend line of the channel, in which positions have been moving since July 2019:
Pay attention, how easily the price of positions increased and decreased with the same confidence.
According to the wave analysis, yesterday, buyers managed to correct the previous wave of fall by 23.6%. Thereby, testing the first level of Fibonacci:
However, in our opinion, it is a poor enough result for buyers to expect a change in trend and the situation is clearly not in their favor.
What should we expect from the price? If the next seller attack fails and ends with the same pins, then it would mean buyer position is set, and the present unsure attack was not an attack but simply a reflection of the ball from one part of the field to another. Nevertheless, we expect a lower consolidation limit test. Let’s see if sellers are able to continue falling without a normal correction at least up to $9,000. We wish you profitable trades!
Image Courtesy: TradingView