Today the week ends, during which the activity of both sellers and buyers was rather low, in comparison with the price movement last week. After the buyers managed to break through the blue trend line, the whole week the price was moving in a consolidation triangle in the range of $7,440-8,200. Sellers did not make a vivid attempt to return the price under the trend line, after that tested the price zone of $6,300-6,600. At 4-hour timeframe, we see that all attempts by sellers to push down the price ended with failure, after which buyers with great ease and without any enormous costs returned the price back:
If sellers do not create any opposite, then buyers have no choice but to continue their growth.
Today, we noticed an interesting situation on the hourly timeframe. Sellers managed to break through $8,000, after which we saw a $7,880 test. During this movement, the marginal positions of buyers sharply closed, indicating that the stop-loss of buyers came true:
However, the price did not continue to fall and sharply, and easily recovered growth. This situation looked like dropping ballast in the form of unnecessary buyers before continuation of the growth and the breakthrough attempt of $8,200.
Globally this week, marginal customer positions returned to the level from which they began to increase last week:
If we analyze the mood of sellers, we do not see an active desire to increase their positions. Moreover, we noticed the tendency that when the price starts to fall, sellers close their positions. This suggests their uncertainty in the continuation of the falling trend for the moment.
According to the wave analysis, now the wave (4) is formed, which may not fall below 23.6% of the wavelength (3). In the previous analysis, we wrote that the 4 wave could continue its formation to the price zone of $6,300-6,600, but so far we do not see the preconditions for this.
If buyers can break through and fix over $8,300, it will mean that the 5th wave of growth has begun with a first stop of $9,120 and a final $10,300. Therefore, the next week is likely to be green and promising for buyers. Let’s look at how things will unfold and have a good week!
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About the Author: Peter Oleshchuk is a trader and technical analyst. He has spent two years studying and analyzing the crypto market. Image Courtesy: Bitcoin News
