Today, Bitcoin price moves at 1.5% range.
Until buyers control the mark $8700, the probability of the test of $9050-9350 is very high.
After completion of the wave (Y), we expect a sharp falling impulse.
Today, trading in Bitcoin market is passive enough. Bitcoin price is moving at 1.5% range and so far on low volumes. In general, we see at the daily timeframe that price is moving in consolidation triangle. Now, sellers are trying to test the bottom trend line of that triangle. If we look at the last daily candles formed within the triangle, we see that after one candle of buyers, sellers need three candles with the same volumes to lower the price to the initial level of growth. If sellers do not add aggressiveness and volumes in this situation, then a local reversal and test of $9050-9350 is a matter of time.
Bitcoin price is above $8700 now. Sellers are trying to fix below this mark for the second day. Closing today’s candle above $8700 could trigger a sharp growth attempt as early as 5 March.
If we analyze Bitcoin market at the 4-hour timeframe, we see that sellers are now testing a certain consolidation range, from which the price started growing to the level $8990:
Sellers are not able to enter this consolidation zone. As we can see, the latest attack did not end with a local low update. This is one of the signals about a local reversal figure, the critical point of which is the mark $8976. Fixing above this mark, buyers will actually provide for themselves a test of the mark $9350.
After a small stop yesterday, the margins of buyers continue to decrease:
Sellers continue to fall and partially fix profits and reduce their margins, what helps buyers organize a counterattack.
According to the wave analysis in Bitcoin market, the wave (X) corrected the wave (W) by 50%:
If buyers manage to keep Bitcoin price $8700, then a test of $9230 within the price range $9050-9350 is inevitable. The current wave structure looks like the correction and means that after its completion by wave (Y) we will see a new sharp falling impulse. So, let’s see if buyers can complete today’s correction and expect to see a critical range test tomorrow.
Image Courtesy: TradingView