This Friday was hot and emotional for Bitcoin buyers. In the previous analysis, we talked about the main scenario of the growth continuation to USD 11,350. Looking at the red candle, which lowered Bitcoin price by almost 6% in an hour, in such a way stopping in the price range USD 10,350-10,500, this scenario can be called into question. However, let’s deal with the situation in detail:
The sharp fall began after the test of USD 10,900. Buyers again failed to break through the local level, which they did not cope with for the first time on 20 August. There is nothing special about this local level and we did not consider it as a serious problem to continue the price growth. Althought, the blow was from an unexpected part.
Nevertheless, sellers did not fix themselves below the price range of USD 10,350-10,500. If you look at the sharp fall under the microscope on a 5-minute timeframe it can be seen that the largest volumes were observed during the test and attempt of the breakdown of USD 10,350-10,500:
It confirms the interest of buyers to buy in this range. Now, Bitcoin buyers are trying to continue growth and are recovering from an “earthquake”. Volumes of green candles are quite small, but everything looks quite stable and confident. So for the time being, our main scenario remains the same. The weekly timeframe shows us that growth should continue next week:
As you can see, the body of the weekly candle absorbs the two previous candles and gives a signal of buyers attack continuation.
The mood of buyers remains positive. Their marginal positions are steadily increasing:
At this time, when the price fell by 6%, buyers closed their marginal positions, fixing profits, thus increasing the fall.
Sellers also show the positive dynamics of their marginal positions and believe that the fall should continue:
It is great when everyone is in a good mood, but this period ends very sadly for one of the parties.
According to the wave analysis, the sharp fall with the local low of USD 10,220 corrected the growth wave by 38.2%. If sellers break USD 10,350, then wave (d) formation will be completed and the next price stop will be USD 9960. However, it is still an alternative scenario. Considering the latest local high update and the sharp fall thereafter, buyers’ main target is now USD 11,200. A critical point on the road to this target is USD 10,812. See you on Sunday in a weekly analysis of Bitcoin’s price movement!
Charts Courtesy: TradingView