Sellers lowered Bitcoin price by 15% this week.
The best scenario for buyers is the test of $9050-9350.
Targets for the fall in the near future are $8200, $7500 and final $5500.
Sunday’s intriguing and emotional price movement in Bitcoin market has come to an end and it’s time to analyze the week. During the week, sellers managed to lower Bitcoin price by almost 15%. If you look at the volumes during the week, it was average relatively to the previous few weeks. At the same time, buyers without corrections managed to lose the range $9050-9350 which is important for their growth. To the end of the week, buyers were unable to arrange a correction.
The last week’s candle closed at the mark $8556 and completely covered the achievement of the previous two growth candles. It shows the serious intentions of sellers. The best scenario for buyers at the moment is a local reversal in 1-2 weeks and a test of $9050-9350 in the form of weak sluggish growth.
However, looking at the weekly timeframe, we especially see no reason not to continue the same aggressive fall of sellers, breaking through $8200 and testing $7500:
The monthly timeframe for February recorded a false breakdown of a local falling trend and of the range $9050-9350. With that in mind, the final point of the fall may be around $5500. Though, the critical point for such a brutal scenario is at $7500.
If you look at the situation more locally, it was quite hot yesterday in Bitcoin market. On Sunday, both buyers and sellers decided to try to change the market and these attempts ended with two false breakdowns:
Initially, buyers tried to fix above the local level $8700 by breaking the local trend line. Although after the test of $8750, sellers very aggressively closed Bitcoin price below the opening price during the same hour. This false breakthrough worked as a signal for sellers who were pushing the price down at the end of the day. Nevertheless, the fall can’t be continued and the price continues to trade in consolidation.
Looking at the daily timeframe, for a few days now, sellers have been trying to push the price down. Each such day of trading increases the probability for the price to bounce up. Therefore, today, buyers have a unique chance to fix above $8700 and continue their trend by the end of the week.
For the week, buyers have significantly reduced their marginal positions:
But the weekly candle of sellers on the chart of marginal positions is almost imperceptible. And sellers do not feel like reducing the positions yet:
That’s why, our main scenario remains valid and we expect a further fall in Bitcoin market. And whether there will be Bitcoin price correction before the local low is updated we will see within a week.
Image Courtesy: TradingView