Well, the week is over and the price journey from one limit of consolidation to another has ended. Throughout whole past week, Bitcoin sellers have been pushing the price down. But, this time, sellers’ attack was more passive than the previous one. It is well noticeable both in the nature of the fall and the volumes:
As you can see these two price falling channels, although they are in the same price range, but they are different. In the green channel we see aggressive red candles and increased volumes, and in the blue channel the price falls sluggishly after a sharp test of the price range of $8,300-8,500. At the present situation, everything looks like after a few newly formed candles with pins down buyers will have a chance to start a new attack up to the range of $8,300-8,500. However, there is no signal for this scenario yet.
On the daily timeframe, we see that the price is in the range of consolidation. Although, yesterday’s candle was able to fix below the price mark at $8,100:
On the one hand, a trifle, and on the other hand, we see that every local counter-attack to $8,500 started with a false breakdown of $8,100. In this case, the price came in a dangerous price zone for Bitcoin buyers, but they do not respond. Though the weakness of sellers is visible. Therefore, if today and tomorrow we do not see activity from buyers and, importantly, a fix above $8,100, but instead if we see a sluggish test of this price mark by buyers, then we will prepare for $7,700 breakdown.
The closing of the weekly candle also showed no significant change in market forces and the desire of buyers to take the situation into their own hands:
So far, on the big timeframe everything looks like falling continuation, with no correction.
However, yesterday, buyers decided to believe in their strength and compete for a trend line on the chart of marginal positions:
As we see the positions have increased but continue to be in local consolidation.
Sellers have a very similar situation. The expectation of Bitcoin price exit from the consolidation is directly reflected in their mood:
According to the wave analysis, the situation remains unchanged and we expect a critical point a $7,700 to see the true balance of forces in the market. Therefore, we believe that the next two days will be important in choosing the direction of the price movement in the coming weeks. So, we will meet tomorrow and carefully review the prospects of buyers to change the situation. Congratulations on the start of the week and may the price change not affect your good mood!
Image Courtesy: TradingView