From the beginning of the new week, Bitcoin price moves ahead and buyers have new hope for a short-term green future. Buyers on increased volumes broke the upper trend line of the channel, in which the price fell from 26 June. Buyers have reached the middle of the yellow zone and now move to its upper limit.
Significantly revived buyers on the chart of marginal positions, showing that their mood for movement continuation is becoming better and more confident:
Buyers also decided to fight for their happiness. An interesting situation is when first buyers and sellers are passive and afraid to make a decision, but after a while, the two parties are beginning to gain confidence. In such situations one should expect a strong and sharp movement after the surrender of one of the parties:
On a daily timeframe, we see that in the past two days the volumes have increased, but entering the yellow price zone on the second day (today), buyers were resisted:
Therefore, the probability of a continuation of the fall after the test of $13,110 is quite high.
If you analyze the history, then you definitely will notice the price mark of $11,800. This is the highest point to which buyers were able to get 2 weeks after falling to $6,000. Now, buyers are fixed above this price mark and in principle, the price is free to walk around $11,800, but we have not seen a sure test of this price.
Another interesting fact is that on the growth of Bitcoin other coins begin to fall. The last drops flow into Bitcoin.
Summarizing the facts that we described above, while the price has not broken $13,110, we regard the current growth as a correctional wave before continuing to fall to $11,500. If buyers do not keep this price, the next target is $10,400 and $9,000. On Thursday, we will talk about the alternative scenario if there are at least minimal signals.
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