Sellers failed to update local low on 29 February.
Yesterday’s trading volumes made an anti-record for the whole previous week.
Passiveness of buyers allows sellers to continue falling to $8250 without correction.
The trading day on Bitcoin market turned out to be quite passive. This time, sellers were unable to update the local low and Bitcoin price stopped at $8557. However, buyers did not take the initiative to return the price above the mark $8700. Yesterday’s trading range was only 3%. If you pay attention to the volumes of trading on 29 February, market participants decided to strike and made an anti-record compared to last week.
At the moment, buyers have an intriguing position and a good chance to form a short-term trend with the target to test $9050-9350, but do not use it. This behavior may mean that there is not enough buyers power in the given price range. This fact increases the probability of a further price fall without correction.
Though, Sunday is a day of wonders in the crypto market. And tomorrow it will be clear whether the passiveness of buyers is their weakness or the tactics to drive more sellers into the trap.
At the 4-hour timeframe, we see a transition of aggressive price fall in Bitcoin market in consolidation:
Pay attention that sellers are narrowing Bitcoin price trading range with the blue trend line everyday, pushing the price to the local mark $8560. With these types of patterns, usually the price continues to move in the trend direction, especially in terms of volume, we do not see the transition of initiative from sellers to buyers. It is another fact which increases the probability of the fall continuation without correction to $8200-8350. The critical point for sellers is the mark $8700.
Margins of buyers continue to decline systematically, practically reaching the point of beginning of their growth from 24 June:
Sellers yesterday increased their margins. Now, they see the consolidation and the probable risk of a sharp Bitcoin price reversal; sellers begin to passively reduce their positions:
According to the wave analysis on Bitcoin market, buyers managed to fix below Fibonacci level yesterday, correcting the previous price growth by 38.2%:
Below the mark $8750, sellers are opening their way to $8250, where they will correct the growth wave from December 2019 by 50%.
Let’s see tomorrow how the trading day closes and analyze the previous week and month in Bitcoin market.
Image Courtesy: TradingView