How much do you like the light sea breeze which started after a severe storm? When you close your eyes, you feel it slightly cool, with a calming touch. However, if you open your eyes immediately, all you see is traces of water and land. Of course, in the crypto world, we will not get such feelings about the price movement, but the situation is very similar. For the second day on the market, a light Bitcoin price breeze blows in the form of consolidation.
The price moves in the black channel and at each subsequent local high, the trading volumes decrease.
Of course, the current consolidation may also mean a set of buyers positions before new growth, but we have not seen a change in market forces. Yes, the fall has stopped and now Bitcoin buyers are trying to create a pattern of growth. However, the stop in the fall did not happen thanks to buyers. Pay attention to the two red candles with large volumes on the hourly timeframe:
As you can see, they are without pins, so there was no fight from the buyers’ side. Sellers just stopped the pressure. In our opinion, it means that at least there should be another attempt of the purple price zone test and a price-fixing below USD 9300. If we see the interest of buyers and small efforts of sellers to continue the fall, then we will be able to make forecasts about the beginning of growth.
At the moment, the price movement in the black local channel is still reminiscent of a weak correction before fall continuation.
Analyzing the marginal positions of buyers, the prospect of closing positions which buyers actively increased throughout August remains great:
We think that during the breakthrough of USD 9300, buyers can start to panic. If we analyze that buyers have started to increase their positions since 2 August, the BTCUSD chart shows that this day Bitcoin price was USD 10,300. The price rose until 10 August. And on August 14, the price was below the price mark of USD 10,300. That is, it turns out that most buyers who have been steadily gaining their position since 2 August are now in a losing position.
Therefore, there is a great danger of continuing a sharp fall in which marginal positions of buyers can play an important role.
The passiveness of sellers is fascinating. We wonder how they will behave after breaking USD 9300:
There were no changes in the wave analysis. The critical point for sellers is USD 10,000:
Therefore, even if buyers manage to get out of the current black local channel, we will still consider it as a correction.
Today the month candle will be closed. Tomorrow we will summarize the results of this month’s trading with you. Have a great weekend and more of a sea breeze in your life!
Charts Courtesy: TradingView